Predicted Strength Indicators
Traders trade trends, and no trading software is better at predicting short-term trends than VantagePoint. With its proprietary leading indicators, VantagePoint, leads the industry in trend forecasting. One of its more important and easy-to-use indicators is Predicted Strength. This leading indicator can help find and confirm potential trades before the trend changes, which gives you the all-important edge you need to be successful.
Predicted Strength (PStr) is a 3-day moving average predicted 2-days ahead minus the current 3-day moving average. A value close to zero means that there will be little difference between the predicted and current moving averages. A relatively high Predicted Strength value indicates that the predicted moving average will be much higher than the current moving average. A relatively low Predicted Strength value indicates that the predicted moving average will be much lower than the current moving average. Predicted Strength numbers vary from market to market; there are no maximum or minimum Predicted Strength values.
Predicted Strength points to strength or weakness in a market, as it and indicates overbought or oversold conditions. Overbought or oversold markets are clear candidates for short-term trades in either direction, but the higher probability of success trades are found when a number of indicators tell the same story. Using Predicted Strength with other indicators is one key to gaining an edge in fast-moving markets.
The advantage of using the traditional Strength indicator to identify overbought or oversold is obvious in the moment, as what has just happened is the reality, but imagine if you could predict potential overbought or oversold conditions in a market near-term. As a leading indicator, Predicted Strength does exactly this, and the advantage for a trader far surpasses that of the traditional Strength indicator.
As any trader knows, to be successful trading markets, one has to have an edge, and the Predicted Strength tool is one of many proprietary tools in VantagePoint that will give you that edge.