'C' class signal detected in ΣL US Stock Market Composite (SPY, QQQ, IWM, DIA). Running at an average wavelength of 36 weeks over 15 iterations since November 2014. Currently peaking.
Hi David, this question may be due to my limited knowledge, but when you refer to a stationary signal (i assume this means consisten frequency modulation) , does that apply to amplitude as well? If a signal is Class A but with very little power, it would be difficult to trade despite being stationary no?
Hey Hoot, yes the best signals will exhibit very little frequency or amplitude change over the sample, of which I like to have at least 6 iterations of the component in question. So a signal that shows drops in amplitude over the sample will not be rated A, regardless of whether it is highly frequency stationary.
Great read! Excited for the future and seeing how well this component does here in the near future!
Thanks Alex, it is one of the few more stable long term cycles and always worth considering the phase.
Hi David, this question may be due to my limited knowledge, but when you refer to a stationary signal (i assume this means consisten frequency modulation) , does that apply to amplitude as well? If a signal is Class A but with very little power, it would be difficult to trade despite being stationary no?
Hey Hoot, yes the best signals will exhibit very little frequency or amplitude change over the sample, of which I like to have at least 6 iterations of the component in question. So a signal that shows drops in amplitude over the sample will not be rated A, regardless of whether it is highly frequency stationary.
The rating system is detailed a bit more here:
https://www.sigma-l.net/p/l-signal-rating-system