Typically the average daily range will increase or decrease before a major market turn. TMI measures range oscillation to spot critical turning points. Reversal signals appear when the value of TMI exceeds 80 and peaks or falls below 20 and bottoms. At that point, we take the opposite direction of recent price activity. In our example below, we achieve a reversal signal the beginning of October, just before Apple's price turns. Because price activity is falling, we take a long position. Entry signals occur infrequently, but are rarely wrong when they do.
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