The Dow Indicator
The Dow Indicator is the end result of complex algorithms that measure the strength and weakness of the 30 underlying stocks that make up the Dow Jones Industrial Index [Dow]. Many factors are calculated by our computer to come up with the Dow Indicator Oscilator, which predicts the swings of the market. Some, but not all of these factors are
- short-term volume, money flow, accumulation/distribution, and bid-side volume-analysis.
The Dow Indicator tells us two very important things: 1) the short-term most likely direction of the overall stock market. 2) if the 30 Dow stocks are over extended in one or the other direction; therefore, ready to snap back.
The combined predictive force of all 30 underlying stocks predict with high accuracy the direction of the Dow Jones Index.
If the Dow Indicator is below 40 and starts to move up and the trade is confirmed by our master trader, then we go "LONG" the Dow. If the Dow Indicator is above 60 and starts to move down and the trade is confirmed by our master trader, then we "SHORT" the Dow.
There are Six types of signals:
GO LONG: Means open a new LONG position.
GO SHORT: Means open a new SHORT position.
STAY LONG: Means hold on to your LONG position.
STAY SHORT: Means hold on the your SHORT position.
ALERT: Means most likely we will be opening a new LONG
or SHORT position at a certain level on the cash dow. Look
for the verbiage by the asterick to find out what the Alert is.
EXIT: Means exit your current position and stay flat.
Dow Indicator Strategy
Using the Dow Indicator Strategy, we follow the curves of the Dow Indicator as explained above, plus we use our 25 years of trading and system research to improve the trade suggestions. Occassionaly in strong down or up trends, our master trader will go Long even when the indicator has not gone below 40 and turned up, and go Short even when the indicator has not gone above 60 and turned down.
The performance table is on the Home page and the results are self-evidence to the effectiveness of the Dow Indicator Strategy. The Dow Indicator Strategy combines the power of the Dow Indicator with our market analysis skills, which include fundamental analysis, determining the strength of the trend, and analysis of the price patterns. We provide you with "LONG" and "SHORT" trading signals in the members' area. Take a look at our trade recommendations to see how simple the daily signals are, and how you can profit from this intricate analysis.
Below are the 30 stocks that make up the Dow Jones Industrial Index as of Sept. 22nd, 2008.
