Each light represents a unique algorithm
In order from left to right:
- Perception (first light from the left)
- Commitment (second light from the left)
- Equilibrium (third light from the left)
- Sentiment (fourth light from the left)
Each algorithm indicates if the market is overbought or oversold by lighting red and blue respectively. When lit red, the algorithm is indicating the market is overbought. When lit blue, the algorithm is indicating the market is oversold. The more lights of the same color that are lit, the stronger the overall opportunity.
In general, when the opportunity gauge indicated 80% or more and there are three or more lights that are lit, this indicates a strong opportunity.
For example, if in the picture below, three lights are blue and the opportunity gauge is at 80% then this indicates a strong trading opportunity to buy. If the signals color was red, this would indicate a strong trading opportunity to sell.