Does the OVI lead the medium term market timer (indicator) or lag it, or neither?
The Medium Term Market Timer is specific to the S&P500 index, but will also have relevance to individual stocks, particularly of course those which are S&P 500 constituents.
It is independent of the OVI, but we are using it in the way by which it has been tested and the way Guy describes.
Its optimal use is where it is either oversold or persistently positive but not overbought, together with an individual stock exhibiting bullish OVI and other characteristics fitting our method.
Find more info about the OVI Market Timers here
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What is the WiseTraders OVI Short, Medium, and Long Term Market Timers?
The longer term timing indicator (OVIsi) was designed with an institutional portfolio in mind, and is based on prolonged bullish or bearish conditions. As such it is a slow-moving indicator which did not turn during the Pandemic downturn of Feb-March ...
If there are no stars/low number of stars for a stock, then how can there be statistical integrity behind the OVI indicator?
No stars simply means the stock is not in the S&P 500. Low stars simply means that in a more recent segment of time, that the stock price has not correlated with its own OVI as well as other stocks have performed in the same time period. It is a ...
What is the OVI?
The OVI is Guy's proprietary trading indicator. It’s a unique tool that you won’t find anywhere else. The letters OVI actually stand for ‘Options Volatility Index’, and the technology itself relies on complex algorithms and billions of data ...
If a stock is a 1 star, does that mean that the OVI correlates with the stock 20% of the time, and if its’ 2 star, it correlates 40% of the time etc?
The stars are relative to each other. 5* means that for the latest period under examination (and the periods are not short term) a particular stock is in the top quantile of stocks that correlate with their own OVIs on an empirical basis. The ...
Is the direction of the OVI important or just that it is either in positive or negative territory?
It's all about support/resistance and breakouts together with OVI, AND with Big Money Footprints (at least a couple). For guided discretionary trading, you don't read the OVI on its own, it is not a daily indicator. Look for persistence in its ...