I have found the Holy Grail indicator for the Dow Jones - 100% right so far

batsonar

Well-known member
387 20
On my 3 Month (1 day bar) chart there is a "pivot point" resistance level on the Dow Jones at 31,198 so the upside moves could well be limited in the short term.
 

batsonar

Well-known member
387 20
To my fellow traders. I am not claiming my indicators and Batsonar trading system are perfect but it is as near to perfection as you are ever going to get. They tell me when a likely change of direction is coming on the Dow Jones. Batsonar is a very early warning system based on Money flow and volume (buying and selling). What my system can't do is predict the amount of points the Dow Jones will move over the next day or next few days. If my signals appear to fail I don't blame the indicators because that has to do more with the market conditions. My indicators don't work well in a flat or neutral market. They can get confused. What my Batsonar system is very good at doing is catching the big moves (or swings) over a few days. I have back tested the system and its hard to fault it. I am now using 4 indicators to confirm a possible change of direction in the market. Since about the 25th November 2020 the Dow Jones has been "hugging" the flat line than other periods in the past. As far as I can see my "Holy Grail" indicators have coped quite well in these conditions. They come into their own when there are some nice swings in the Market. As I have said in post number 928 the big bank traders only use simple trading systems using 1 indicator like Bollinger Bands, moving average and MACD. I personally can't see much value in these indicators because of the "lag" factor in them. My "Holy Grail" indicators don't have any "lag" as far as I can see in back testing. If you are going to trade using my signals then please make sure you use a practice account not real money. If these signals turn out to be right more times than being wrong then I hope in the future that I can work as a trader in one of the big banks or set up a "Trading Academy". You never know who is reading this thread.
 
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batsonar

Well-known member
387 20
The Dow Jones closed at 30,991.52 -68.95 (-0.22%) on Thursday the 14th January 2021. My Money Flow indicator has not yet dropped off from the 100% level so no "sell" (Short) signal there. 1 out of my 4 other indicators has crossed the zero line into the red but I would not call a "Sell" (Short) signal on the Dow Jones as of the end of today's trading day.
 

batsonar

Well-known member
387 20
US Indexes and Exchange Quotes
Stochastics and PVO (Percentage Volume Oscillator) Quotes.

A Stochastic reading of over 80% is considered overbought. As you can see below at the end of the trading day the DJI (Dow Jones Industrial) has a Stochastic reading of round the 90% mark which means the Dow Jones in overbought territory.

Untitled 344.jpg
 
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batsonar

Well-known member
387 20
US Indexes and Exchange Quotes
RSI (Relative Strength Index) and PVO (Percentage Volume Oscillator) Quotes.

As you can see below the RSI reading on the DJI (Dow Jones Industrial) has a reading of 70.56. Anything over the 70 mark is considered overbought territory.

Untitled 345.jpg
 

batsonar

Well-known member
387 20
On my 3 Month (1 day bar) chart there is a "pivot point" resistance level on the Dow Jones at 31,198 so the upside moves could well be limited in the short term.
As I thought, the Dow Jones went up to the "pivot point" resistance level of 31,198 but failed to close above this level. It may attempt it again in the short term or it might just give up and fall back down. I'm watching carefully for a "Sell" (Short) signal from my "Holy Grail" indicators. I will keep you all updated.
 

batsonar

Well-known member
387 20
The Dow Jones closed at 30,814.26 -177.26 (-0.57%) on Friday the 15th January 2021. I am using 7 indicators now on a 3 month (1 day bar) chart. The Money Flow indicator has come of the 100% level giving a "Sell" (Short) signal. The ROC, MADV R, MADV PO, MADV Osc, FI and AO indicators have all crossed the zero line into the "RED" which is a "Sell"(Short) signal as far as I am concerned. This would indicate more downward pressure on the Dow Jones next week. However the downtrend may be limited because there is a "pivot point" resistance level at 30,721. If the Dow closes below this level then expect the selling to accelerate. I am still learning to use my system and "ironing" out the flaws. I am not trading any of my signals at the moment but will observe over the next few months trying to establish what works best. There is a "pivot point" resistance level at 31,198 and a support level at 30,721. I would expect the Dow Jones to bounce between these 2 levels over the short to mid term.
 

batsonar

Well-known member
387 20
I first posted this chart on Tuesday 12th January 2021 at 8:53am (see post 912). This is my perfect "Swing High" and "Swing Low" indicator. It looks like it has correctly called the top of the market as it so often does.

Untitled 8.jpg
 

batsonar

Well-known member
387 20
How is everyone doing today? I hope my fellow traders are doing well.
 

batsonar

Well-known member
387 20
If the stock market is a mathematical system which it is (purely mathematics) then there will be a technical indicator out there that can predict the next move on the Dow Jones. Technical indicators also work on pure mathematics. All you have to do is find a technical indicator where you can change the settings and parameters to then find the "Holy Grail" indicator. The truth is, I think tonight I may have solved the puzzle of the stock market moves and its complex patterns. Just need to test the system. Knowing my luck it will not work in real life but we will have to see what happens.
 
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BigDeal

Junior member
49 26
You will never find the perfect mathematical solution to stock market returns. If it existed the stock market would fail because everyone would be following the same set of rules and then trades could never take place - every share trade, index trade, FOREX trade etc. etc. needs a buyer and a seller.
In addition there are other factors which upset the calculations e.g. unexpected world events, better or worse than expected data etc.
If you can find technicals / signals which work for your set of circumstances and trading style more times than they fail, that is the best you will get, and in fact, that is what I believe investors should aim for.
 

batsonar

Well-known member
387 20
You will never find the perfect mathematical solution to stock market returns. If it existed the stock market would fail because everyone would be following the same set of rules and then trades could never take place - every share trade, index trade, FOREX trade etc. etc. needs a buyer and a seller.
In addition there are other factors which upset the calculations e.g. unexpected world events, better or worse than expected data etc.
If you can find technicals / signals which work for your set of circumstances and trading style more times than they fail, that is the best you will get, and in fact, that is what I believe investors should aim for.
Just because no one has found the "Holy Grail" indicator does't mean it does't exist does it? Maybe there hasn't been anyone born yet that is clever enough up until now to create the perfect trading system.
 
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