WHEN TO EXPECT INTRADAY TREND REVERSALS

We designed what we call the "Trendicator." It aids the trader to determine when a trend exists and its direction. We make this determination by examining data provided on the Trin or Vix or both. By harvesting specialized data points in each of these indices, the Trendicator sends an alert the exact moment a new trend is confirmed. If a trend exists on the Trin or Vix, then a trend on the spoos also exists. Therefore the trader knows in what direction to trade. The confirmation of a trend will always lag the market. However, Trendicator also attempts to generate data that can anticipate where the existing trend will likely end. While we cannot always be certain of this, by combining several factors together we can frequently end up nailing the end of a trend with very high accuracy, albeit, usually after a few unsuccessful attempts. Fortunately even when we are premature, we often see enough of a reaction at the confluence of certain conditions, so that the trader can tighten a protective stop to break even and not incur a loss.

There are five rows of 1 minute data in the Trends Charts below.

Trend Charts:

ES
Trin
Vix
Trin DPO
Vix DPO

Text files generated by Trendicator

Trin and Vix data points are found in the TL, VL, TS, VS text files.

We record the exact price and minute new data points are found which are used in our proprietary calculations.

Trin and Vix projections generated by Trendicator

Proprietary projections are found in these text files. TLS, VLS, TSS, VSS.txt

The exact projections of the trin and vix are logged in a text file for verification and manual examination.

Divergence files

These files contain the exact price data the system will use for determining if divergence exists.

We know what the price of the indices should be when reversals take place. Our margin of error is .02-.04. We also know the ES target price and the price of the Trin or Vix and what the value of the dpo should be in order for divergence to exist. The system does this automatically and effortlessly.

Trin data points TL.txt	Trin projections TLS.txt	Vix data points VL.txt	Vix projections VLS.txt	Vix divergence vixdiv_1090107.txt
01/07/2009 103 9:37am 105 9:47am 123 9:52am 125 9:55am 127 12:12pm 128 12:39pm 129 12:48pm 1.45 1.58 1.71 1.87 2.01 2.13 2.39 2.55 2.68 01/07/2009 103 9:37am 105 9:47am 123 9:52am 125 9:55am 127 12:12pm 128 12:39pm 129 12:48pm 142 12:53pm 143 12:57pm 149 1:00pm 1.77 2.00 2.23 2.52 2.76 2.98 3.44 3.72 3.95	1.4501 1.5802 1.7103 1.7700 1.8704 1.9000 2.0000 2.0100 2.0800 2.1300 2.1700 2.1800 2.2300 2.3900 2.3900 2.4100 2.4400 2.5200 2.5300 2.5500 2.6800	01/07/2009 4021 8:57am 4024 9:00am 4039 9:09am 4083 9:18am 4087 9:28am 41.28 41.61 41.94 42.35 42.69 43.01 43.67 44.07 44.40 01/07/2009 4021 8:57am 4024 9:00am 4039 9:09am 4083 9:18am 4087 9:28am 4093 9:32am 41.38 41.74 42.10 42.54 42.91 43.26 43.98 44.43 44.79	41.2801 41.3800 41.6100 41.6200 41.7200 41.7402 41.9100 41.9403 41.9900 42.0500 42.1000 42.1800 42.3504 42.3504 42.4305 42.4900 42.5400 42.5400 42.6506 42.6906 42.6906 42.8300 42.9100 42.9607 43.0100 43.0100 43.0300 43.0600 43.0908 43.2200 43.2600 43.4500 43.4800 43.6100 43.6400 43.6600 43.6700 43.6700 43.7000 43.7700 43.8209 43.9000 43.9400 43.9800	918.50  high es 40.47 low vix -0.32 dpo level1 -0.33 dpo level 2 -0.34 dpo level 3 909.50  low es 41.14 high vix 0.21 dpo level 1 0.22 dpo level 2 0.22 dpo level 3