Market Cycles Chart

SPY Market Cycle Analysis with VIX and Market Position | TradeUI

Updates 3 times a day market open to close Mon-Fri.

Understanding the Market Position Indicator

The Market Position indicator is a composite signal derived from three popular technical indicators: RSI (Relative Strength Index), MACD (Moving Average Convergence Divergence), and Bollinger Bands. It aims to provide a comprehensive view of market conditions, helping traders identify potential overbought or oversold situations.

How to use the Market Position indicator:

Positive values (above 0): Suggest potentially overbought conditions. Consider taking profits or being cautious with new long positions.
Negative values (below 0): Indicate potentially oversold conditions. Look for potential buying opportunities or be wary of further short selling.
Values near zero: Represent neutral market conditions. The market may be ranging or transitioning between bullish and bearish phases.
Extreme values: The further from zero, the stronger the signal. However, always use this indicator in conjunction with other analysis tools and never as a sole decision-making factor.
Divergences: Look for divergences between the Market Position and price action, which can signal potential trend reversals.

Remember, no indicator is perfect. Always use the Market Position in context with other technical and fundamental analysis tools, and consider the overall market conditions before making trading decisions.