Shift Ratios™ work mainly because they focus on the data that counts! To understand why Shift Theory Ratios™ work we need to go back to the basics of trend analysis and the undeniable mathematical facts of price change.
- Choppy or sideways markets have a high percentage of bars overlapping each other.
- Trending markets need to be making new highs or lows for a trend to happen and continue.
Choppy and Sideways Market or Charts
The Inside Shift Ratio™ is the biggest advancements in technical analysis in decades. There are countless traders, trading system developers and market analysis in general who have no accurate way to know when not to trade. The Inside Ratio™ is the only measuring tool that accurately measures how choppy a chart is on a scale of 0 to 100.
Inside Ratio™ simply gives the trader the exact percentage of the current bar that overlaps the previous bar. Shift Theory™ clearly states that choppy markets have a high percentage of bars overlapping each other. The Inside Ratio™ returns and tracks that percentage in real time.
Most traders lose money in choppy markets. The Inside Ratio™ give the trader the ability to know when to trade and when not to. That alone has the potential to take struggling traders and give them that little edge they need to hit profitability.
What separates the Upper and Lower Shift Ratios™ from conventional technical analysis is they only measure the change between higher highs or lower lows. A trending market needs to have bars that either are making new highs or making new lows to the previous bar. The bars also need to shift from over lapping each other to the outsides of the previous bar. That results in accurate trading signals because all of the noise from the Average True Range of a bar is eliminated. Focusing on the percentage of higher highs or lower lows without any other information also gives highly accurate trading signals that are just not possible any other way.
In the end Shift Theory Ratios™ work better than any other indicator because they solve the two biggest problems traders face. Knowing when not to trade and focusing on the data that is responsible for creating trends!
Finally Back Tested Results!
Every indicator for sale that I have seen out there does not dare show their back testing results. Shift Theory Ratios™ back test well on all markets and that is real measurable proof. They back test well because they do what a indicator should do. Measure price and separate normal buy and sell activity form trending market characteristics.
HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM.
ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.