Saturday, April 25, 2009

Secrets of the moon


FBS = False Bar Stochastic

Proprietary to Advanced GET and developed by Tom Joseph, the False Bar Stochastic attempts to devine trending from cyclic price action through a traditional 14-3-3 stochastic oscillator. The FBS generates a black horizontal line where it detects a trending market, suggesting that any stochastic-generated signals be ignored under those conditions. The FBS works on all time frames, One-minute through Weekly, Monthly and Quarterly periods.

Above is a Weekly chart of the SPX. Annotated on the chart are the FBS-generated Signals for the past three years:

07/17/06 BUY = 1240

03/12/07 BUY = 1387

08/13/07 BUY = 1445

10/22/07 SELL = 1535

05/19/08 SELL = 1376

Current price = 866


I've also drawn some trend channels coming down from what appears to be a Wave 2 peak coinciding with the most recent FBS Sell. In fact, all of the FBS Signals appear to coincide with Primary Degree Elliott Waves.

My working hypthesis is that the next FBS signal will be a SELL and coincide with the completion of Wave 4 and the beginning of Wave 5 down.


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