CN Wave – The winner?
It’s 7am and there is still time for the tides to turn.
Last night, we had difficulty with the data. Members can see that of our traditional 9 indictors from last night were all green, except the CN Wave. With all the green, it looks like an easy bullish signal. Yet, the CN wave is our strongest single signal. With only a few minutes left in the trading day, I wasn’t going to steer people wrong when I was conflicted about what I was seeing.
Well so far, the SPY is down. There are a lot of implications to this. I’ll expand my thoughts during the last hour before the market opens….
8:45am – I think my concern last night can be confirmed with the markets heading down at the open.
I have three phases of testing. 10 trades, 20 trades, 40 trades. We are at 35 trades with the current evolution and CN is the most accurate. As mentioned hovering around 80% using the strictest definitions.
The CN wave is a good candidate for day trading, however, the long complex formula would need to be automated. Thus, the reason I only offer end of trading day and mid-day once in a while.
The N waves seem to show more of a longer term accuracy. This is why I’m feeling good about our weekly predictions, however, it is way to early to trade on these numbers.
If I was going to interoperate the numbers from last night I would say down open, but with all the pressure (green) around it, we will end up in the positive at some point. This is pure speculation on my part.
With each trading session, we learn the value (or lack of) of each section of the table. By the time we hit 100 trades, we may only depend on CN Wave.
I understand I’m not sharing how these numbers are derived, however, if you have ideas or recommendations, or approaches you would like to see, feel free to share your thoughts.