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Trend Reversal Points Algorithm

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Trend Reversal Points Algorithm
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Trend Reversal Points Indicator (TRPS)
 
TRPS is based on multiple criteria with a trigger mechanism for orders. The 4 point coefficient marks the beginning or end of a trend and signals a market move.
  • Movement in price over daily period 
  • Movement in sentiment
  • Technical indicators confirmation
  • Fundamental analysis confirmation

All TRPS indicators carry equal weight.

To avoid any false positive or negative signals TRPS is backed up by the Diamond method. This method provides a rapid diagnostic test for the market based on 4 criteria.
  • Price movement
  • Directional Movement
  • Moving Averages
  • Stochastics

Useful indicators

Size of OI and price (OIV) reflects intensity of markets and positions
 
  • OI down prices up sell (5)
  • OI up prices down sell (10)
  • OI down and Prices down buy (5)
  • OI up Prices up then buy (10)
  • Volume and price data

    Fundamental analysis
    • Major news 10 points
    • Minor news 5 points  
    • No news move 0 points
     

    Fundamental analysis matrix

    Technical analysis
    • Stochastics 5 points
    • Directional movement and MACD 5 points
    • Price (2%) 5 points
    • Volume (2%) 5 points

    The algorithm
     
    OIV+V+FA+TA/4=X
     
    V=volume
    FM1+FM2/2
    % value
     
    FA=fundamental analysis
    0-10
     
    TA=technical analysis
    0-6
     
    X
    9-10 Strong
    8-9   Definate
    6-8   Hold
    0-6   Tenuous
     

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