It's easy for a timing indicator or a market forecaster to look good in a trending market. As long as the trend remains bullish with low volatility virtually any timing indicator will be bullish and appear to be valid. The same holds true of down-trending markets. We all know that to be true. The real significance of any indicator or forecasting methodology is determined by how it performs in volatile and/or sideways markets. This chart shows bitcoin versus US dollar, certainly a volatile market and certainly a market that has had several uptrends and downtrends. When the chart bars turn green the averages cross and signal an uptrend. When they turn red that indicates the eight close has moved below the open and signals the start of a downtrend. As you can see the JB 8OC captures meaningful up and downtrends but also gives some back during periods of whipsaw. This is not unusual. Remember that with any indicator you must use it in time frames where it performs best. In my experience, JB 8OC performs extremely well in weekly time frames. I will also post a few charts showing JB 8OC in intraday time. Finally remember that every methodology, at least in my opinion, must contain three elements: set up, trigger, and follow through. As I have shown it in its present state JB 8OC is only a setup. We can increase overall profitability and accuracy and eliminate many losing trades if we add a trigger which I will show over the next few days.
Jake RBT
Jake RBT