To analyze the graph of Mostafa El
Belkhayat uses 2 indicators that are based both on the concept of center of gravity of a stock movement.
1.
The first
indicator, Belkhayat Gravity center, calculates the center of gravity dynamic
market. It is represented by parallel stripes which appear to serve with
supports and resistance.
2.
The
indicator Belkhayat Timing, calculates the center of gravity static. It is
represented by the chart below the price chart and provides areas for optimal probability to buy
or sell.
Reading both of these indicators can have
immediate visibility on the evolution likelihood of a market without the need
for comments. At a glance, the reader will know whether to buy, sell or wait
and do nothing.
The indicator Belkhayat gravity centre:
This indicator uses a mathematical formula developed (polynomial nonparametric
regression) that first to calculate the center of gravity of a moving stock (blue line) and 3 standard
deviations to upwards (red stripes) and 3 to the decline (green strips). The amplitudes of these deviations
are always proportions golden ratio 1.618. And we will, after studying this indicator
on a hundred different markets that the magic number is well printed in the
brains of human beings, whatever race or origins.
1- The first finding is that all financial markets
oscillate around its center gravity. They exaggerate the up or down from a consensus price or less unconscious.
2- The
amplitude of these exaggerations is not random, rather the contrary: as seen on
graph above (the market for U.S. Treasury bonds), the amplitude is very often equal to the exact number of gold from the center of gravity dynamic. As if human exaggeration is highly dependent on the number of gold.
3- The blue curve, representing
the dynamic center of gravity gives us so immediate and visual direction of the current market trend is downward. Since
the blue curve is bent down.
4- The
extreme red lines and green indicate the amplitude of breathing of
the market. Otherwise That is, its volatility. It is also an immediate and easy reading because
visual. Like all markets vary in elasticity relative to their center of gravity, they are
extreme of paramount importance to make decisions to buy or sell.
5- The basic principle of the indicator Belkhayat
barycentre is simple: when the price in the area contained by the two red curves,
it is in an area conducive for sale, because the
probability that the market return, like a rubber band, to its center of
gravity is approximately 90%) and vice versa when the price falls within the
lower area contained by the lines green.
6- The corollary of this principle is not
recommended to buy when the price is at above the center of gravity, or sell when it is below.
The indicator Belkhayat barycentre is
dynamic and is calculated (and therefore change) each period of
4 hours (240 minutes). It is the "time frame" of the graph, or
periodicity. It therefore adapts as with the progress of the market while making the historic past of the 250 periods.
To optimize the technical analysis, we included an indicator based on the
revolutionary gravity centre static indicator Belkhayat Timing. Reading both of these
indicators provides immediate visibility of the likely evolution, in the short term, any
market fellow.
Belkhayat Timing Indicator
This indicator is an oscillator that provides 3 types of very important areas:
·
The "dark"
environment that represents the area centroid. When the price is in this area, it is recommended to do nothing because the probability of
being right (or wrong) is about 50%. It is a neutral zone where he must show patience and prepare for next position.
·
The "gray"
areas represent extreme where it is recommended to take profits. Liquidate its position in the "gray" contained by the red
lines and redeem its position in the "gray" contained by the green lines. And this, of course, in agreement with the basic principle of the indicator Belkhayat
gravity center.
·
The white
areas beyond the extremes, called alert zones, which issue signals for buying and selling high probability of success.
Basic rule of Belkhayat:
When the indicator Belkhayat Timing, the
zone alarm is crossed, we check if it corresponds to an area of extreme indicator Belkhayat gravity centre. If so, then the
probability that the valid signal is greater than 80%.
This system of analysis, very easy to use, is of considerable power. With
experience, the eye observes and detects in a fraction of a second what to do, even
when the market seems complicated. For a
simple reason: we offer mathematics benchmarks that are more or less unaware of
by the majority of traders. Benchmarks that allow us to know in advance the
area of prices where they are given appointments without even knowing.
