The CrystalBull Trading Indicator Chart
This chart shows the daily closing values of our CrystalBull Trading Indicator. NOTE: This chart is updated daily, after the market close. Thus, the last figure may not match the current gauge value, which is a live value (updated every 5 minutes).HOW TO USE: The yellow line in the center chart represents the CrystalBull.com Trading Indicator. It is displayed in a standard technical analysis format, where a reading above +50 (red line) represents a possible negative trend reversal (market appears overbought, and may trend downward going forward), and a reading below -50 (green line) represents a possible favorable trend reversal (market appears oversold, and may trend higher going forward). The Indicator chart draws a line from data point to data point, from one day's close to the next. Where that line crosses the green or red line is not relevant; Monitor only the data points along the line.
As a side note, the model must calculate its returns at the end of each day. Thus, it calculates its entry or exit prices as a closing value of the S&P 500 each day. In reality, a person would have to trade after hours or take the opening price the next day. The model assumes that the Open the next day will be the same as the Close on the day the signal were exercised. Of course, that is rarely the case, but is usually quite close, with small variances on either the favorable or unfavorable side.
Also, there are occasions where the Trading Indicator issues an alert during the trading day that does not hold until the close. For example, on January 30th, 2012, the model issued a "possibly oversold" alert during the day. The market reversed over the next few hours, rising until the condition no longer held at the close. If a person would have acted on the alert, and entered the market at the intraday alert, they would have found themselves on the opposite side of the official model at the close. In this case, the market rose nicely during the day, so the person could have sold their position by the close, at a profit, and returned to the same side as the official model. That is not to imply that a person should trade with that strategy.
Similarly, the model issued a "possibly overbought" alert during the trading days on October 4th and 5th, 2012. Neither held through the close of the day, but were very accurate signals.
( HINT: Click-and-drag left-to-right on the top chart (S&P 500) to zoom in to a specific date range. Double-click on S&P 500 chart to zoom back out. )
The CrystalBull Trading Indicator uses a proprietary model to try to determine strength and weakness in the market, and to identify possible entry and exit points. Our hope is that this indicator may reduce the "buy-high-sell-low" tendencies of the typical investor.
From 12/31/96 through 12/31/12, following this CrystalBull Trading Indicator would have produced a Total Return more than 100 times higher than a Buy-and-Hold strategy (15091% vs. 154%), with an average annual return of 36.9% APR (The average Total Return of the S&P 500 during this period was just 6.0% annually). The Indicator had 185 round turn trades (about one per month). Click here to see the Historical Performance of the CrystalBull Trading Indicator