Analyzing Process Of POM
Our Price Oscillation Methodology (POM)
Price Oscillation Model for “Price Projections” Measure “Internal & External
Prices” with Forward Looking Indicators Reconcile with “Inter-market Analysis and
Global Market Correlation” Validate with “Historical Pattern Recognition” Assess
Influence of “Time Cycles & Calendar” Analyze “un priced” events & its Calendar
for Potential “Trend Reversal Triggers”
Our Global Inter market Analysis to Impact Direction
of SPX (GIC)
Currency market movements trigger directional changes in equities worldwide Structured
risk management with “Inter Market Correlation” can enhance returns A “leader-follower”
relationship has been emerging in key markets Currencies Global Markets SPX Need
to look “Outside the Markets” for Trend Reversal formation One Market technical
(Domestic) is “deceptive” in risk assessment Watch for “source and overrides” for
Trend Reversals Clear evidence of “Domino Effect” due to global market correlation
Price Path Analysis
price & Volume Analysis ( PQV)
The Swing Point volume, The Trend volume, Natural Highs / Lows Volume, The Pattern Volume then measure the force between the swings with the Trend.
The Force is the volume between the swings that pushes the market in an up-mode ( Rally) or down-mode ( Decline) in the Direction of Highest volume
Price Confluence Zone(CZ)
Multiple Cross current price streams created by previous high volume market dislocations converges to Price Zone ( Barrier) that blocks the Market from moving higher or lower.
High volume is needed to cross Price Barrier for continuation of sustainable Trend.
CZ Criteria
- Natural Highs & Lows
- Swing Highs & Lows
- Pattern Break Areas
- Gap Dislocations
- Fibonacci Analysis
- SMAs Convergence
Clues and Cues from Global Markets
“Bear Market” depends heavily on calling market direction for Risk Management First
- Capability to read market direction Second- Ability to pick stock moves Third
- Analysis in place to track and monitor performance!!!
Behavior and dependency
Money flow in Worldwide Exchanges affect direction & volatility in US Exchanges
Decisions are taken in Exchanges on Risk assessment of Global Markets via Foreign
products & Foreign ETF’s participation prior to price shifts Weighting Structure
Imbalance, Asset Allocation Models of Institutional Money flow Changes in rule in
US exchanges e.g. Downtick rule, short interest. Spotting Trend reversal signals
from catalyst markets is critical to risk management