Key to the Charts

The indicator producing the colors is a 7 bar Least Squares Momentum line. The calculation of that is "The program draws a least-squares, best-fit line through a certain number of bars of closing prices. The slope of this line is each day’s momentum value. " This information is taken directly from the charting application I use. The program is Investograph 4.0, purchased from Liberty Research a company whose website is no longer viable. The program appears not to be available any more.

Is it enough to buy the day after a green bar and sell the day after a red bar appears. On the surface this seems plausible, but on closer appearance (and on other charts, not shown), it's more problematic than that. I'm trying to explore how to make those trend directions more meaningful in a predictive way--a way that could lead to profitable trading. To aid in trend direction, there are two moving average lines superimposed on the charts. They are called "proprietary moving averages" by the program, and they have far less lag than traditional moving averages.

As more ideas come up and as some which have been tried prove to be worthless, new indicators will be added to future charts.

NOTE: By clicking on the chart, you'll see a larger version of it.