Stock Market Barometer Leading Indicator Chart

Why An indicator: The indicators are used to make advanced decisions on the Barometer Forecast- this way users of the site can see why those changes take place.

The indicators can also be used to assist in "swing trading". Swing trading is the process of buying and selling stocks during cycles of a market or stock.

What is it: It is a chart that represents the output of several Barometer models. Two of which are the 'News' and 'Stock Portfolio' models.

These models run several times a day and produce analytical metrics that are used in several ways. One of which is to produce the plot for the Barometer. There are two others that are used to identify bearish and bullish conditions in the market.

These data-points are placed on the chart, along with the Barometer-plot, to produce a chart that ends-up with three plots for each trade day. A Barometer-plot, a bullish plot, and a bearish plot make up the Barometer Leading-Indicator charts.

These three plots interact with each other and depending on the position of each plot, determines the market environment, according to Barometer methodology.

What are the benefits: The Barometer Leading-Indicator is used by us to make forecast changes. You can benefit by being able to identify the different market conditions and directly benefit by assisting in your buy/sell/hold strategy/methodology.

These are samples of how the Barometer works. For current studies used to forecast, you can begin at the Barometer page where trends, tops, and bottoms are predicted.

Examples: Barometer Leading-Indicator- Full Chart

A swing from a negative market to a positive market is identified when the Barometer-plot (yellow) and the positive plot (green) crosses up over the negative plot (red) as shown on the chart just prior to 4/1/03.

A swing from a positive market to a negative market is identified when the Barometer-plot (yellow) and the positive plot (green) crosses down under the negative plot (red) as shown on the chart prior to 1/1/03.

When the Barometer-plot (yellow) is between the positive (green) and negative (red) plots (or boundaries), indicates a neutral market environment; when the Barometer-plot is in this neutral area for a significant amount of time, it normally indicates sideways movement of the market, trading range.