Frequently Asked Questions
Price Velocity is a proprietary calculation, executed in real-time, that helps us understand when a financial market instrument is susceptible to sudden, sharp price moves. Price Velocity, as measured by our algorithms, tells us the sensitivity of price—both up and down—to buying pressure, selling pressure, and news-flow. The ability to predict future Price Velocity and through it the “path of least resistance” is the cornerstone of our innovations.
We use our Price Velocity Indicator in two important ways. We monitor divergences between Price and Velocity at each fractal price level in order to predict market turning points and, most importantly, we use Price Velocity to monitor tape risk, both up and down. Understanding Price Velocity is especially important prior to earnings announcements, clinical trial results and during periods when markets are focused on global macro news-flow.
Trigger Levels are proprietary levels most closely resembling dynamic trendlines displayed in the form of price bands. Trigger Levels are calculated by our algorithms in real-time and are derived from price data originating at multiple fractal time periods.
We use our Trigger Levels in two important ways. We monitor the stacked positioning of Price-to-Triggers and Triggers-to-Triggers in order to gauge trend strength and, most importantly, we use Trigger Levels to monitor Melt-up/Flash Crash risk associated with Trigger Cluster set ups.
Crosses are events that occur when Price or Triggers move above or below another Trigger Level.
We use Crosses as our buy/sell signal. Our algorithms have been tuned to understand each investing or trading vehicle’s unique personality throughout its history. Once the personality is understood, the algorithms gauge whether Price Velocity and Trigger Levels are properly positioned. If everything is in alignment, the Cross will initiate the trade.