When purchasing a forecast, you will get a JPG picture with projection lines indicating the most probable future trend and timing for the selected price instrument (symbol).
The annual cycle determines the general direction (up/down.sideways).
The weekly cycle determines how to spot the exact entry or exit timing.
These lines are "floating" over the price line, they indicate trend direction but do not indicate exact price levels.
Annual cycle, (Grey), Annual smoothed trend for the year ahead
Quarterly cycle (Red)
Monthly cycle (Blue)
Bi-weekly cycle (Velvet)
Weekly cycle (Pink), Weekly cycle, for the most accurate timing
Additional Chart Details
Left side (light blue) - the price history side.
Right side (pink) - the forecast side.
Horizontal red/blue lines - optionally added ZIGAZG indicator statistics for next swing support/resistance price levels.
Vertical lines - optional, added manually , these are specific dates of interests, indication of probable turning points.
How to use these forecast lines?
In an uptrend where the annual line point up, any low in the weekly line is an opportunity for buy . Once entered, hold the trade with tight stop-loss, with preferably trailing-stop, until the price change direction (do not sell when the weeky cycle turns downwards). Then look for the next weekly line bottom to decide on the next entry.
In a downtrend where the annual line point down, any high in the weekly line is an opportunity for sell. Once entered, hold the trade with tight stop-loss, with preferably trailing-stop, until the price change direction (do not buy when the weeky cycle turns upwards). Then look for the next weekly line top to decide on the next entry.
When annual trend change direction or goes sideways, use the weekly lines as guidelines for buy/sell signals.
Notes for rare inverse cases (flip):
Phenomena: When a flip occurs, the price goes in the opposite direction of the projection line, while the timing is the same.
The monthly, bi-weekly and weekly lines always go in the same direction.
The monthly, bi-weekly and weekly lines may flip regardless of the annual line
The lines do not tend to flip suddenly or often, they may flip in rare occasions and then hold in the new position for many weeks and months ahead.
The key to identify inverse cases is by tracking the price vs. the projection line.
From our experience with hundreds of price instruments, 95% of them correlate with the FutureChart technology with accuracy of about 85%-95% tested visually. The accuracy relates to timing: the timing accuracy of change-in-trend date may be of a few days (1-3) .
The most effective way to experience projection lines accuracy is by comparing the real price with the forecast visually. Projection lines forecast accuracy depend on the specific price instrument. We do not guarantee 100% accuracy.
The models provide price directions probabilities in different resolutions. In shorter forecast horizons use the weekly model . In longer forecast horizons use the annual model.
The following numbers represent our experience but do not represent all possible cases.
Annual model, typically up to a week, maximum a month in a year range
Weekly model, typically up to 2 days, maximum +/- 1 weeks in 3 months range
Be aware that no system is 100% accurate and that projection lines may in some cases be wrong or inverted.
In about 10% of the cases the lines may show as "flip" direction, (up instead of down or down instead of up). This is a natural effect of the underneath technology of Neural Networks mathematics.
When price is trending up and suddenly falls, the trigger for that type of event generated by the cycles may be earlier, due to the nature of cycles.
The lines represent a relative direction, not specific price levels
These charts may not be 100% accurate, the market is always stronger
You should consider to use your trading skills and risk management methods such as stop loss or others