Laundry's Method

I believe this is used in his bond trading strategy but look how well it signals for the SPX. Sick market right now...I am NOT bullish currently.

Bob has been quoting this system. When do we buy and sell based on this system?

When price crosses the mid bands you get a buy or sell signal. Above the mid band is a buy, below is a sell. You can set it up on a daily as well. I like to use my other indicators with it. Put a ROC on this and watch the extreme readings on the ROC as well.

bond trading strategy

Bond over Growth? Growth over Value? Value over Bond?

Again, my question is what is the ratio geared for?

Does Terry give any explanation on why he chose these two funds as his basis for trade?

Does he use any specific breadth data to compliment this ratio at all?

Now...a question for you Chili...how do you like working with the Keltner channels as opposed to Bollinger Bands? What advantages or disadvantages have you found with using one over the other?

Thanks in advance

Fib

bond trading strategy

Bond over Growth? Growth over Value? Value over Bond?

Again, my question is what is the ratio geared for?

Does Terry give any explanation on why he chose these two funds as his basis for trade?

Does he use any specific breadth data to compliment this ratio at all?

Hi Fib, Rogerdodger might be able to explain Laundry's method more than I, he has a few page links I believe. (I only have this link) I was made aware of his work from a few different sources and his T work. I myself do not use that T method. What I do like about the chart shown above is that it is a look back on a higher time frame for my shorter term trading. (Context always as IYB says) It seems to show the price direction in a bit longer time frame than what my shorter trading is based on.

Now...a question for you Chili...how do you like working with the Keltner channels as opposed to Bollinger Bands? What advantages or disadvantages have you found with using one over the other?

Again, I am not a user of Keltner bands myself. Laundry is an MIT engineer grad I think and so quite a number cruncher and devised that formulation you see in the chart. I never had much ability to use Bollinger's myself with my trading methodology. Not saying BB's are not a great tool but they don't fit my style. Listening to Laundry's info clouds my brain, he has very many unique takes and methods in his analysis it seems to me. I just like that chart is all

Trade well, chili


Thanks in advance

Fib

Here is laundry's public chart
http://stockcharts.c...1729&r=1432.png

The most obvious issue currently, aside from the fact that "confidence" turned down in May (after double topping) is that there also is a negative divergence with price, which I have labeled and identified with the blue channels.
It is likely a leading market tell.
The March '09 bottom saw just the opposite, as confidence improved while price made a lower low.
This is a weekly chart, so we are talking about longer term implications, very much like this:
Real Rocket Scientist sees trouble brewing.

Here is laundry's public chart
http://stockcharts.c...1729&r=1432.png

Edited by Rogerdodger, 20 July 2011 - 04:13 PM.

Laundry Confidence Index...is a sell off coming?

Nice heads-up chili. And to roger and rotrot for making it crystal clear. Going by 2010 we should figure this out or the selling will be over by Aug, unless of course it turns into 07-08 again.. Nice chart to use or post again at major turns rotrot.

Nice heads-up chili. And to roger and rotrot for making it crystal clear.
Going by 2010 we should figure this out or the selling will be over by Aug, unless of course it turns into 07-08 again..
Nice chart to use or post again at major turns rotrot.

Laundry has his version on the Public Charts List at Stockcharts:
Terry Laundry’s Public Chart List