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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
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Fundamental analysis
- Major news 10 points
- Minor news 5 points
- No news move 0 points
Fundamental analysis matrix
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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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