"Speed Of Trend"(SOT) Indicator

ping_manoj · #1 8th August 2006, 04:33 PM

Hello friends,

Sorry for not posting replies to your queries. Was a little tied up with meetings and so on.... You know all the stuff one has to do to make for a living!

I have come across quite some posts where friends are asking about the SOT indicator. I thought I'll share it with all.

Introduction:
The "Speed Of Trend"(SOT) indicator is a mechanism (not an index or a true indicator) to find the speed of the momentum of a stock.

What is the need?
Once a scrip is in a trend one need to know the targets for the scrip.

Measure
The SOT tries to measure the RSI's Overbought and/or Oversold signal on the time scale.

How it Works?
Once a scrip starts trending, meaning it takes a specific direction, I measures the speed at which the scrip is trending.
I calculate the percentage difference of today’s close to that of the yesterdays close.
Then a 4days average of this speed is derived, which I term as the "Speed Of Trend"(SOT).
Once I have the SOT, I calculate the future closing of the stock on the current SOT%.
Along-side the future closing of the stock the future RSI is also calculated.
At one point in time, the RSI would become overbought or oversold, depending the direction of the scrip.
This future closing of the stock is considered as the target.

Note:
The SOT is a lagging indicator and hence the targets will shift along with the actual closing of the stock.

Any queries are welcome.

MANOJ

sivavkm · #2 8th August 2006, 05:30 PM

Quote:

Originally Posted by ping_manoj

Hello friends,

Sorry for not posting replies to your queries. Was a little tied up with meetings and so on.... You know all the stuff one has to do to make for a living!

I have come across quite some posts where friends are asking about the SOT indicator. I thought I'll share it with all.....

Quote:

Originally Posted by ping_manoj

Hi Ashish,
There are Two Most Important screens that one should look at for deciding for a trade.

Menus:
1. TwoNaHalf.cOm - 2 1/2 Power calls screen.
2. Stock Screening - CandelStick Patterns - Bulish Engulf.
These two screens will indicate the stocks where there is a one day trend change indicator. For a successful trade, one should hold the stock for atleast 5-7 days.

For intraday, one should look at the following screens.
For Long Intraday Calls:
1. Stock Screening - TwoNaHalf.cOm SOT Indicator - Stocks on Up Trend.
2. Stock Screening - TwoNaHalf.cOm SOT Indicator - Fastest Up Trend.

Strategy:
Long when they trade below their previous close. They will come up.

In you would want to short (Avoid doing this totally, if you are new.):
1. Stock Screening - TwoNaHalf.cOm SOT Indicator - Stocks on Down Trend.
2. Stock Screening - TwoNaHalf.cOm SOT Indicator - Fastest Down Trend.
Strategy:
Short when they trade above yesterdays close, they will come down.

Note:
Do not intraday-trade if there was a CandleStick Pattern was marked with a black or red circle. These are trend changes. The red one indicated the stock will start coming down. The balck one indicates the stock will start moving up.
Take a swing position instead.

Dear Manoj,

Congratulations & thanks for sharing such a wonderful site.

I am (many of us) waiting for more posts from you. And I have one humble suggestion, can you please stick on to one thread so that we can access all the related information about your site in a single place?

Thanks & Regards
Siva

ashish0318 · #3 8th August 2006, 07:00 PM

Dear Manoj,
Thanks a lot,,,I understood the theory,,,,thanks again

Ashish

ping_manoj · #4 16th February 2007, 10:53 AM

Hello Friends,

Its been some time I posted on the forum...
A new version of TwoNaHalf.cOm has been released.
Do take a look at it.
Lots of New Features.
Much more coming soon...

Regards

MANOJ T

kkseal · #5 16th February 2007, 04:47 PM

Hi friends,

As far as i can see the SOT is a 4day SMA/EMA of the ROC.

I read somewhere about the follies of making future projections based on past averages.
Such projections may well go wayward if the stock were to reverse. Off-course a candlestick filter has been used to guard against such an eventuality.

I think it would be better to use a SOT of the RSI concommitantly and take positions based on the concurrence of the two SOTs (than relying on any one alone).

Having said that, the price SOT alone may suffice for very small timeframes like intraday.

Interesting strategy. Thanks Manoj for presenting it here.

Regards,
Kalyan.

moneypick · #6 16th February 2007, 05:58 PM

Dear Manoj,

What is your opinion about this:

Quote:

Originally Posted by kkseal

As far as i can see the SOT is a 4day SMA/EMA of the ROC.

Regards,

(moneypick)

ping_manoj · #7 16th February 2007, 08:36 PM

Quote:

Originally Posted by moneypick

Dear Manoj,

What is your opinion about this:

Regards,

(moneypick)

Hi moneypick,

please refer to this link: http://www.twonahalf.com/Aboutsot.htm

I am sure this link will answer answer your questions.

True, like any other indicator/indication, SOT can, and should, not be used as a sole indicator. The trade decision should be based on indicators like RSI, stocastic and so on...

Look at SOT not as a indicator, but as a gauge. A gauge to estimate pricies.
Like the first law of Physics, if something is un-measureable, have atleast 'something' to measure it. SOT is that 'something'.

Regards

MANOJ T

kkseal · #8 16th February 2007, 11:13 PM

Good work Manoj Good thinking.

The fact that you have made the fruits of your labour available for the benefit of all is all the more praiseworthy.

I am working on a simillar indicator for gauzing the strength of a move based on the same RSI concept.

Your website is a good one too.

Wishing you every success.

Regards,
Kalyan.

ping_manoj · #9 17th February 2007, 02:54 PM

Quote:

Originally Posted by kkseal

Good work Manoj Good thinking.

The fact that you have made the fruits of your labour available for the benefit of all is all the more praiseworthy.

I am working on a simillar indicator for gauzing the strength of a move based on the same RSI concept.

Your website is a good one too.

Wishing you every success.

Regards,
Kalyan.

Thanks KK for your response on SOT.
You were refering to a similar indicator which you are working on.

Can you tell something about that?

Regards

MANOJ T

Bullet · #10 17th February 2007, 03:19 PM

Hi manoj,

Thanks for sharing your SOT indicator with us.

And ur website is really good for T.A

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