Important points on using and applying NobelTrend program

First, please remember that after you open the program, the first thing you want to do is load the prepared symbol list or read the list using the scanner table.   It will save you a lot of time in reading the chart later..   

NobelTrend is a market timing and trend identifying program.  The key for using the program is understanding the implications of the GEMO family lines.  Here let's look the chart samples and explain how it works.

1. Market timing

market timing refers to the top out and bottom out point predictions on the underlying securities.  Here we use NASDAQ Composite as chart sample

Referring to the above daily chart for Nasdaq Composite Index, NobelTrend uses the Gemo family lines as market timing tools.  The Gemo family lines displayed two important timing cycles which are:

Cycle 1. when  three of the Gemo family lines, the green line (market expectation line) the purple line (market action line) and the blue line (gemo line), all reach  the top range  or bottom range. See the above chart, NASDAQ Composite Index  reached the low end of the cycle1 on March 18, 2005. If the above mentioned three lines reach the bottom range and keep in the lower range, then the cycle1 will prolong to cycle2.

Cycle 2. when the two average lines of the blue line (Gemo line) reach the top range or bottom range and the blue line starts break above the average line.       See the chart below.

NASDAQ Composite Index reached cycle2 on December 31,2005 and started turning down.

Key points to remember for market timing:

1). For short - term market cycle looking the cycle1. For middle term market cycle looking cycle2.

2). Looking cycle2 in the daily chart and cycle1 in weekly chart to confirm the market cycle timing..

3). Market index cycle timing is more important than sector index cycle timing which is more important than individual securities cycle timing.

4). Looking the Gemo line and the overbought and oversold signals for timing confirmations.

2. Trend identifications

If you want to make higher return then follow the trend.  If you invest against the trend, then your portfolio will have more chance to be under perform.  Here let's look three different trends identified by the Gemo family lines.

Weak trend:

Above chart is the weak trend pattern.  The Gemo average lines are in up trend (GS>0).  When the market expectation line (the green line) reached the top, the blue line did not follow it moved up and started moving down after reaching a point.  The highest value of the blue line was much less than the green line.  When the green line stated moving down.  Tthe blue line moved down and broke the average lines.  This is the typical weak trend pattern.

Strong trend

  The above trend is the strong trend pattern. The blue line broke the average lines and followed the green and purple line moved up.  When the green line hit the top range.  The blue line continued moving and reached the top range.  The blue line were always higher than the average lines.  This is the best pattern for middle term to long investment.

Strong Strong trend

Look the above chart for Apple Computers Inc. for  Strong Strong trend pattern.  Strong strong trend pattern includes the following features

1). The daily average lines of the Gemo line stay at the top range (value >58.5).

2). The daily average line of the stock line is >0 (aver>0) and stock price is always >30 bar moving average.

3.  The weekly average lines of the Gemo line is >0 and stock price is always > the 50 bar moving average..

3. How to profit from stock trend

1). Investing follows the trend.

2). Sell when the trend is identified as weak trend.

3). Timing the investment opportunities with market index or sector index timing.

4). Enter when the RSI indicator start turning up and trend continue.