In addition to the crossover indicators, VantagePoint also uses the exponential and actual moving averages to compare against each other and produce another set of indicators forecasting strengthening or weakening market trends. These are the Predicted Differences
Predicted Short Term Difference (PTSDiff) – the amount the predicted 2-day exponential moving average of typical prices one day ahead (P2EMA+1) is above or below the actual 5-day simple moving average close (A5SMA).
Predicted Medium Term Difference (PTMDiff) – the amount the predicted 4-day exponential moving average of typical prices two days ahead (P4EMA+2) is above or below the actual 10-day simple moving average close (A10SMA).
Predicted Long Term Difference (PTLDiff) – the amount the predicted 6-day exponential moving average of typical prices three days ahead (P6EMA+3) is above or below the actual 15-day simple moving average of close (A15SMA).
Predicted High Difference (PHighDiff) is an indicator that shows the difference between today’s predicted high and yesterday’s actual high.
Predicted Low Difference (PLowDiff) is an indicator that shows the difference between today’s predicted low and yesterday’s actual low.
The value of Predicted Differences should not be underestimated. As a tool for defining potential price range and viability of a trade, it is valuable, but, arguably, its greater value is in helping specifically define entry and exit points for a trade. As any trader knows, entry and exit points define the amount of profit and/or loss. This group of leading indicators is just about the best tool there is for defining profit and/or loss in a potential trade.
In addition to the above, Predicted Difference indicators can be used in conjunction with the Predicted Neural Index to confirm trend direction or to indicate that a trend may be ready to reverse.