A quick review of our Custom RTT TrendStatus tool on the SPY (ETF for the SP500).
The RTT Trendstatus signaled with plenty of warning the market peak prior the Japanese Quake.
To understand the color coding of the RTT Trendstatus here is the index.
The indicator looks at price by how far its has moved away from its trending mean. Different colors give measurements of the degree.
vExUp (Dark Blue): Very Extended upwards trend
ExUp (Blue): Extend upwards trend.
Up (Green): Up trend.
Test (Gray): Trend in test mode.
Dwn (Red): Down trend.
ExDwn (Purple): Extended downwards trend.
vExDwn (Dark Purple): Very extended downwards trend.
Changes in color give adequate warning to you when price action requires your close attention. The dotted blue lines highlight when price will begin to test the trend, or as we call it entering the 'trend testing zone'.
1) If the immediate presentation of RTT TrendStatus shows NO RED then the trend is bullish. This is inclusive of the RTT TrendStatus pulling back as far to the lower dotted blue line.
2) If the immediate presentation of RTT TrendStatus shows NO GREEN then the trend is bearish. This is inclusive of the RTT TrendStatus pulling back as far to the upper dotted blue line.
3) Changes in color require your attention to price action.
4) The more infrequent the appearance of an extended color the more likely that the reading is significant.
5) The parameters can not be changed, thus a truly universal security trend tool.
Here is the latest example SPY...