TurnAlert

Description of TurnAlert Report

Turn

The turn forecast is given on the first line. This indicates that a change in price behavior is very probable within a day. If the market has been rising this could mean that prices could go flat or fall. If the market has been flat, the turn could mark the beginning of a new rally or decline. The importance of a turn is that something is very likely to happen that is different from what has happened during the preceding days. Turn forecasts are always predicted basis the close of trading on the indicated day. A trader should be on the lookout for a reversal or breakout within a day; this also means that the event could have begun before the close on the turn day. We provide the Precision Turn calendar to give advance warning of turn days.

Direction

The second line contains our direction forecast, which is either Up or Down. The market should move in the indicated direction, but there is always a possibility it could move in the other direction, which is why a trade reverse point is suggested. The direction is determined using a special neural network that analyses price, volume, and sentiment behavior during the period just preceding the turn.

Trade Entry

The third and fourth lines contain the trade suggestions. The suggested trade entry is always at the next day's open. However, if the market moves against the forecast and through the reverse point, it is likely to continue in that direction. If a trade is elected, the management of the trade is left to the client. Studies have shown that the expected duration of a trade is about 4-8 days, and at least partial profits should be taken if another turn occurs during the trade.

Risk

It is important to consider how far the trade is likely to go. Our price channel lines provide an excellent reference. If the market is on the high end of a wide channel, and the move down to the lower channel boundary has enough profit potential, then taking this trade may make more sense than one in which there is little room for gain. It should be remembered that stops do not necessarily prevent major losses.

Price Channels

The lines drawn on the chart show the most significant price trend channels. The high and low channel lines are found automatically by selecting only those which have the most contacts, are parallel to within 0.75° tolerance, and are the closest together (the narrowest channel). Channels provide a sense of perspective as to what the trend has been recently on two different time scales: a broad, longer-term channel and a narrow, shorter-term channel. Insight into profit potential is gained by evaluating current price levels relative to the broader trend channel. For example: