e-Yield indicators

We have a timing indicator called 13-day BTI and a trend reversal indicator called 34-day BTI, when they are overbought they warm us of a pullback/trend reversal in the FTSE 100. The difference between the two indicators is in the size of the decline. With the 13-day BTI the expected decline will last a few days or a week. In the case of the 34-day BTI the decline will be more severe, we are talking about a multi-week decline.

Today’s rally in the FTSE is similar to that in May this year on this chart:

 

e-yield indicators

What we can see from this chart is that history repeats itself. The sharp rally in May pushed the 13-day BTI to overbought. This overbought 13-day BTI was a warning the FTSE would pullback and the index pulled back on 18 May.

The same thing occurred today, the 13-day BTI became overbought last week and the FTSE pulled back.

In May the pullback was followed by a rally to new high, the 34-day BTI then became overbought at the end of May. The indicator was warning of a multi-week decline. The FTSE declined from 1st June to the end of June.

If history is any guide today the FTSE should push higher near 7600 to bring the 34-day BTI to overbought. That move should be followed by a multi-week decline.

You can benefit from this type of analysis by subscribing to one of the services on offer:

1. Standard service: FTSE short term forecast

You will receive swing trade signals on FTSE 100 future (December). Swing trades are kept open for more than one day, ideal for catching the big moves. The stop loss is 100 pts, the profit target is 200 pts or more. Plus you have access to daily analysis with comments and charts posted on Better Trader Premium.

Subscribe to the FTSE short term forecast

2. Full service: FTSE Intraday

You will receive a mixture of intraday trades and swing trades signals. The intraday trades have a 40 pts stop loss and 60-70 pts profit target. The swing trades have a wider stop loss (100 pts) but they return more than the intraday trades because they target the big moves. The profit target is 200 pts or more. The swing trades are on the FTSE 100 December, the intraday trades are on the FTSE 100 cash. Plus you have access to daily analysis with comments and charts posted on Better Trader Premium.

Subscribe to the FTSE intraday

  1. Thank you ever so for you post.Much thanks again.buy viagra online

Leave a Comment

Your email address will not be published.