Since Oct 7, 2000
The chart above is a PolyDimensional Metatrends chart of the stock market. This chart displays the over bought vs over sold status of hundreds of varying lengths of trends simutanously while at the same time showing the sign of the estimated first and estimated second derivatives of those same trends.
Where columns of yellow back slashes form is usually near a "TOP". Yellow slashes indicate an over bought trend interval.
Where columns of purple forward slashes form is usually near a "BOTTOM". Purple slashes indicate an over sold trend interval.
Where columns of the color green occur is usually near a "TOP". Green is placed on the chart as estimated second derivatives approach extreme positive values.
Where columns of the color red occur is usually near a "BOTTOM". Red is placed on the chart as estimated second derivatives approach extreme negative values.
When the estimated first derivative is positive the symbol "+" (operator for addition) is placed on the chart. These "+"s cluster together in groups forming checker board patterns that indicate Positive Metatrends. Positive Metatrends start and end at "BOTTOMS".
When the estimated first derivative is negative the symbol "-" (operator for subtraction) is placed on the chart. These "-"s cluster together in groups forming horizontal line patterns that indicate Negative MetaTrends. Negative MetaTrends start and end at "TOPS".
MetaTrends are not new. MetaTrends were first publically described in the June 2001 TECHNICAL ANALYSIS OF STOCKS & COMMODITIES. MetaTrends were the featured cover story. However, the chart above, while created by the author of the STOCKS & COMMODITIES article, is very much more advanced than the charts described in the magazine article. This chart features the addition of the estimated second derivatives, the over bought and over sold indicators, and a better method for estimating the derivatives of the trends.
The chart above is a projection of the Dow Jones Industrial Average for one week.