Toolbox

Micro trend assessment with mechanical tools

It is useful to track multiple indicators to get the best sense of what the market is really doing. The mechanical tools used for the Notes On ASX market assessment consist of four main ingredients:

Bar Chart Interpretation

New High-New Low Index

Secondary Market Internals

Market Breadth Indicators

Makro trend assessment with discretionary methods

Wyckoff Market Cycles

The majority of stocks move together with the broad market within market cycles. Understanding the underlying trend and the position of the trend helps us identifying the cycle. Trend is important because it tells us the path of least resistance for the majority of stocks. Position is important because it tells us the current location within this trend. We are using the discretionary methods of Richard Wyckoff for our makro trend assessment.