VantagePoint Gives Traders Market Leading Indicators

Our technology transforms traditional, market lagging indicators into predictive, market-leading indicators.

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VantagePoint Trend Forecasting

What is a Lagging Indicator?

A lagging technical indicator relies solely on past data. For example, a traditional 6-day moving average of closing prices takes the past six days of closing prices, adds them up, and then divides by six. All of the data used to calculate the moving average is actual and has already happened. Thus, the predictive value of such an indicator is minimal, based solely on past data.

6-day Moving Average (MA) = 6 Days Actual Data / 6

 

A traditional 6-day moving average (MA) of closing prices takes the past six days of closing prices, adds them up, and then divides by six.

Admittedly, traders like moving averages because they smooth out the peaks and valleys in prices, are easy to use, and are easy to interpret. These are their positive qualities. The lag effect, though, has always been the Achilles’ heel of moving averages. In 1991, after years of research, Louis Mendelsohn introduced VantagePoint which relies on cutting-edge technologies involving the application of neural network pattern recognition to Intermarket analysis. Through this process, VantagePoint actually forecasts trends and changes in trend direction with incredible accuracy. Its “predictive” moving averages spurred a revolution in technical analysis by completely eliminating their lag effect.

Why Traders Need Leading Indicators

Since 1991, VantagePoint’s Predicted Moving Averages have given thousands of traders a tool that leads the market by applying neural networks to Intermarket analysis of global financial markets. This technologically advanced approach turns what has traditionally been a lagging indicator into a true leading indicator, which has been proven to be highly accurate at predicting short-term trends and changes in trend direction with incredible accuracy.

VantagePoint’s Predicted Moving Averages combine actual market data with forecasted market data and then takes an average of those values.

Leading Predictive Indicators

6-day Predicted Moving Average (PMA) = 4 Days Actual Data + 2 Days Predicted Data / 6

 

A 6-day PMA of closing prices takes the past four days of closes, adds two days of predicted data, and then divides that total by six.

Six days are still averaged, but day five and day six are predicted. This innovation minimizes, if not totally eliminates, the lag effect previously thought to be inherent in moving averages. Now, the important key here is that the two days of predicted data derive from the patented “under the hood” application of neural network pattern recognition to Intermarket analysis. This technologically advanced combination of two powerful computing technologies – neural network analysis and trend forecasting – patented by Mr. Mendelsohn, is what gives traders like you insight into market dynamics and impending trend changes days before the competition gets wind of what’s really happening.  Their loss is your gain! To see how VantagePoint’s other Leading Indicators can help you get into trades sooner and stay in them longer to profit from more of the move, click here.

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VantagePoint’s Leading Indicators Gives Traders a Two-Day Jump on the Markets

Are you still using “lagging” single market technical indicators in your analysis where you study a chart on Wednesday night, look at a moving average, and see that a particular market you’re interested in is trending up or down? Upon further inspection, you find that the trend actually started on Tuesday morning or earlier and that you’re already a couple of days late in getting into the position. That’s what happens when you look at traditional single market charts and lagging indicators.

Moving Averages in VantagePoint Explained

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