The value of predictions of high and low price for trading has been largely overlooked in the finance literature.
We take a small step to correcting this by populating the following Table with daily updates of the Combined Growth Indicator (CGI) for the exchange traded fund SPY.
|Symbol||Trading Day||One Trading Day Previous||Two Trading Days Previous|
The current value of the CGI pertains to the current market day. The current and previous values of the CGI are available early in the morning of a market day (after 1AM) and are valid through the close of a market day. To make sure you have the most up-to-date values in the Table, refresh this webpage.
Outside this time window, the values in the Table are not current and can be disregarded for purposes of trading.
A simple trading strategy works well with the CGI.
Trades are initiated when the sign of “Trading Day” is different than the sign of “Value One Day Previous.” Long trades are initiated when the value of the CGI indicator flips from negative to positive. A long trade, once initiated, is held until the CGI indicator flips back to negative. Profitable positions can be established at the open price of the trading day when the CGI flips from negative to positive. Short positions can be created with the reverse action, but care must be exercised in a strongly trending market.
Information and Price Dynamics trading simulations show the CGI leads to trading profits with SPY which are multiples of that achievable with a passive investment strategy (See Tally of Early 2021 Long and Short Trades Triggered by the Combined Growth Indicator)
More profitable positions can be available, given data about daily and multi-day high/low price forecasts. Consider arranging a consultation to learn about these opportunities.
This information is provided for educational and entertainment purposes only. IPD takes no responsibility for trading losses which may result from attempts to use the CGI as a signal for trades. Stock and options trading can involve significant financial losses. You should always consult with your financial advisor before adopting a trading approach.