Sensor changes - Nov29

The BP sensors have been around for about five years, but only recently did I develop algorithms to make them useful as a trading tool.  Since they are so new, there will be many changes in their presentation here in order to make them easier to use and more reliable.  One of these changes was to make BP1 and BP2 provide similar information so that in the event of hardware failure, charts would still be available.

This is the first data set from both sensors since this change, and it represents market action for today, if the markets were open.  For a while I will be presenting the data in this format until the better predictor is determined.

BP2 Forecast for Nov28

The NYSE closes today at 1:00. The chart is for the whole day.

Futures are trading slightly lower which is in line with the direction forecast into 11:00-11:15.

Future of the BP market forecasting tools

During the last two weeks it has become obvious that these charts are a huge success and have the potential to develop into possibly the best trading tool available for intraday index trading. The focus of my efforts is presently on the BP2 sensor, but I am working on something radically different for the BP1 unit. Presently the BP1 data is heavily smoothed with an effective sample rate of only once every 5-minutes. I plan on taking that sample rate down to be equal or possibly better than the BP2’s 1-minute rate. A third sensor is under construction which will incorporate much newer technology with the ability to have it’s operating parameters modified as needed. BP3 should go online around the first of the year 2009.

What about continued access to the charts? At this time I am leaving these charts as a free service of Chartsedge.com. I plan on developing an automated version of the charts which will provide real-time 24-hour charts with notated reversal times. The charts will be much larger. This service will be as a subscription service for a nominal fee and will include the ‘best performing’ BP sensor forecasts.

For now, I am changing nothing about access, but plan on continuing improvements to these amazing devices. I encourage you to share any of the charts from Chartsedge.com as long as they are left in their original form and are not sold. RSS feed is available by clicking on the link to the right. That gives you immediate access to all the BP charts as they come available.

BP1 Forecast Chart

This chart uses new formulas on the same 5-minute data.  The shape of the curve is similar to the BP2 chart for today with the exception of the late-day rally on the BP2 chart.

BP2 Forecast Chart

Futures have been trading lower most of the night, but the BP2 chart is indicating a reversal during the first 30-minutes of trading. Today’s cycle chart (see the reference in the sidebar to the right) does not correlate well with the BP chart.

BP1 Update

BP2 Chart

BP1 Morning Chart

Nov25 7:22AM EST

The futures have traded both above and below fair value this morning.  The BP1 chart shows a positive bias during most of the opening hour while the BP2 chart is indicating a 10:30 low.  Both charts are in agreement about a 12:00 high.

BP1 chart

The BP1 chart will not be available today due to a program crash overnight.

BP2 chart

Nov 24th 8:05AM