Intra-Day Model Guide

A New Model is here

Regular readers and subscribers are well aware of the two models that I have been applying to my charts since starting this space. They have served us exceptionally well since I launched them. Not only do they guide us in scanning more than 250 macro assets on a regular basis and determining the long or short momentum and strength, but also whether any existing trend is running out of steam.

Source: Dall-E

Momentum and the exhaustion of momentum are not just abstract concepts; they are reflections of underlying natural laws and human behaviour. In technical analysis, these principles guide the interpretation of market data, helping us investors identify when a trend is likely to continue and when it may reverse.

I have used Technical Analysis for a few decades and have developed my way of applying it to markets. Like everything, you can’t just read a book and apply new things without thought. Like any investment process, bringing in technical analysis requires a framework of understanding and philosophy. Why should it work? To many of my friends, technical analysis is still voodoo. To me, it reflects the very complexity we are dealing with on a daily basis. Human psychology.

For readers, I have put together a thought piece, which you can find below. It’s a must-read for anyone trying to learn and build their own framework.

One of the most important things about successful investing in markets is asking the right questions. The art here is focussing on the essentials while staying away from finding out everything worth knowing. In his excellent book The Connectome, neuroscientist Sebastian Seung, as well as Antoine de Saint-Exupery, remind us that perfection is achieved not when there is nothing more to add but when there is nothing left to take away.

The above quote from my post nicely summarises the quest at hand. We can’t rely on loose concepts and previously well-working strategies in an evolutionary financial cosmos. Certainty is not guaranteed, but human psychology remains one reliable constant.

Today, I am adding an intra-day model to the two already existing models. Those subscribers already using those models in their TradingView set-ups will automatically receive notification of this new script and incur no additional cost. It will take a few days to roll this out, so please be patient.

Here is a little preview of last Friday’s sell-off in the SPX. The model looks at price reaction and candle patterns, including volume markers, to distinguish between buy (green) and sell (red) time frames.

Source: Paper Alfa Engine Room

Anyone interested in the models, ping me an email with your TV username. Note that only paying subscribers will be granted access. No exceptions. New subscribers will see a price increase.

In order to familiarise yourself with the current momentum and reversal model, I highly recommend reading the guide below.

Let’s now explore the new model in more detail.