The heat map is a little confusing by itself. "Now" is at the far bottom. I am using 5 day simple moving average, 10 SMA, and 20 SMA.
I posted this reply to a question:
"Sorry doodlebug, that heat map is a proprietary thing with all kind of custom settings on custom data.
I use it as follows
Light Red I scale into shorts
Deeper red I add shorts
Tan means I scale out of shorts or longs (nuetral)
Light blue I scale into longs (or hedge shorts with futures)
Deeper blue I add longs or long hedges -- but seriously, if its deep blue...I would rather be out of all shorts and heavy long."
The 5 and 10 day have returned 58% and 52% annually during trending markets. Lately the 5 has been OK and the 10 has been whipsawed pretty badly as we top out through this 29 calendar day cycle.
I may muster a 15 day cycle since that would pretty clearly match the half cycle period that seems predominant right now. Check next week. I usually superimpose this on a frankensteinian conglomeration of 4 or 5 charts melded into one, and that takes alot of time.
I am quite good at Excel charts, but have not come up with a way to automate the process and presentation.
