let’s take a look on few stocks and wide market index from PFT and SG-analysis point of view
this is AAPL; «logical» question: is it a time to short it? reasonable answer is: no, it isn’t a time to short because upside price flow is strong enough and there are no any sign of destabilization; may be a small cloud at scale 1: amplitude is slightly increasing but it is local in time; looks like huge amplitude increase at scale 4 creates a huge downside potential; it’s possible but not right now; further more if you can control a position closely it is not a bad time to enter UP;
this is AIG since Dec 2010 (4th chart); direction is obviously UP, stability is high; some amplitude increase at scale 2 may be easily «eaten» by high-quality flow at scale 4
this is SBUX itself; scale 4 looks like the same as at AAPL, but stability is testing now at scales 1 and 2; but there is no breakout yet, so diagnosis is «stable up»
S&P 500: scale 4 shows: abnormal high speed up with acceleration, breakout in the main direction and very tiny channel — everything is a sign of crazy buying market; and there are no clear signs of instability; the end of this strong upward flow will be after breakout of the configuration at scale 2 and higher; what will be after that — we will see soon («soon» in terms of PFT may take a long time but it obviously be some days or more probably weeks).
In conclusion we emphasize that all the scales for each instrument are specially selected to show the essence of the process; all indicators are built, of course, in accordance with the SG-analysis of the Price Flow Theory, using programs developed by Sergei Gladyshev and Alexander Emelyanov for MetaTrader-4.
SG-Анализ (SG-Analysis / PF-Analysis) 