Disclaimer: This is for educational purposes only. I am not a financial advisor, and this is not financial advice. Consult a professional before investing real money. I strongly encourage paper trading to test any strategy.
The Ticker Pulse + Fear EKG Strategy is a long-term, dip-buying investment approach that balances market momentum with emotional sentiment. It integrates two key components:
Optimized for the daily timeframe, this strategy also performs well on weekly or monthly charts, making it ideal for dollar-cost averaging or trend-following with confidence. Visual cues—such as green and orange dots, heatmap backgrounds, and SMA/Bollinger Bands—provide clear signals and context. The strategy’s default settings are user-friendly, requiring minimal adjustments.
Now on the the educational part that is most fascinating.
Load XLK on your chart and add a secondary line by plotting the following on a secondary axis:
INDEX:SKFI + INDEX:SKTH / 2
Now, you should see something like this:
Focus on the INDEX:SKFI + INDEX:SKTH / 2 line, noting its dips and spikes. Compare these movements to XLK’s price action and the corresponding dot signals:
This concept applies not only to XLK but also to major stocks within a sector, such as AAPL, a significant component of XLK. Chart AAPL against INDEX:SKFI + INDEX:SKTH / 2 to observe how stock and sector indices influence each other.
Now, you should see something like this:
Long-Term Investing Considerations
By default, the strategy suggests exiting 50% of open positions at each red dot. However, as long-term investors, there’s no need to follow this rule strictly. Instead, consider holding positions until they are profitable, especially when dollar-cost averaging for future retirement.
In prolonged bear markets, such as 2022, stocks like META experienced significant declines. Selling 50% of positions on early red dots may have locked in losses. For disciplined long-term investors, holding all open positions through market recoveries can lead to profitable outcomes.
The Importance of Context
Successful trading hinges on context. For example, using a long-term Linear Regression Channel (LRC) and buying green or orange dots below the channel’s point-of-control (red line) significantly improves the likelihood of success. Compare this to buying dots above the point-of-control, where outcomes are less favorable.
Why This Strategy Works
The Ticker Pulse + Fear EKG Strategy excels at identifying market dips and tops by combining momentum and sentiment analysis. I hope this explanation clarifies its value and empowers you to explore its potential through paper trading.
Anyway, I thought I would make a post to help explain why the strategy is so good at identifying the dips and the tops. Hope you found this write up as educational.
The strategy: https://www.tradingview.com/script/Lh8aBfH5-Ticker-Pulse-Meter-Fear-EKG-Strategy-V4-No-Repaints/
The Companion Indicator: https://www.tradingview.com/script/2pdgTR8x-Ticker-Pulse-Meter/
The Ticker Pulse + Fear EKG Strategy is a long-term, dip-buying investment approach that balances market momentum with emotional sentiment. It integrates two key components:
- Ticker Pulse: Tracks momentum using dual-range metrics to pinpoint precise entry and exit points.
- Fear EKG: Identifies spikes in market fear to highlight potential reversal opportunities.
Optimized for the daily timeframe, this strategy also performs well on weekly or monthly charts, making it ideal for dollar-cost averaging or trend-following with confidence. Visual cues—such as green and orange dots, heatmap backgrounds, and SMA/Bollinger Bands—provide clear signals and context. The strategy’s default settings are user-friendly, requiring minimal adjustments.
- Green dots indicate high-confidence entry signals and do not repaint.
- Orange dots (Fear EKG entries), paired with a red “fear” heatmap background, signal opportunities to accumulate shares during peak fear and market sell-offs.
Now on the the educational part that is most fascinating.
Load XLK on your chart and add a secondary line by plotting the following on a secondary axis:
INDEX:SKFI + INDEX:SKTH / 2
Now, you should see something like this:
Focus on the INDEX:SKFI + INDEX:SKTH / 2 line, noting its dips and spikes. Compare these movements to XLK’s price action and the corresponding dot signals:
- Green and Orange Dots: Opportunities to scale into long positions.
- Red Dots: Opportunities to start scaling out of positions.
This concept applies not only to XLK but also to major stocks within a sector, such as AAPL, a significant component of XLK. Chart AAPL against INDEX:SKFI + INDEX:SKTH / 2 to observe how stock and sector indices influence each other.
Now, you should see something like this:
Long-Term Investing Considerations
By default, the strategy suggests exiting 50% of open positions at each red dot. However, as long-term investors, there’s no need to follow this rule strictly. Instead, consider holding positions until they are profitable, especially when dollar-cost averaging for future retirement.
In prolonged bear markets, such as 2022, stocks like META experienced significant declines. Selling 50% of positions on early red dots may have locked in losses. For disciplined long-term investors, holding all open positions through market recoveries can lead to profitable outcomes.
The Importance of Context
Successful trading hinges on context. For example, using a long-term Linear Regression Channel (LRC) and buying green or orange dots below the channel’s point-of-control (red line) significantly improves the likelihood of success. Compare this to buying dots above the point-of-control, where outcomes are less favorable.
Why This Strategy Works
The Ticker Pulse + Fear EKG Strategy excels at identifying market dips and tops by combining momentum and sentiment analysis. I hope this explanation clarifies its value and empowers you to explore its potential through paper trading.
Anyway, I thought I would make a post to help explain why the strategy is so good at identifying the dips and the tops. Hope you found this write up as educational.
The strategy: https://www.tradingview.com/script/Lh8aBfH5-Ticker-Pulse-Meter-Fear-EKG-Strategy-V4-No-Repaints/
The Companion Indicator: https://www.tradingview.com/script/2pdgTR8x-Ticker-Pulse-Meter/
Note
Building out the META example a bit further, first you would need to change the primary ticker to META and the secondary from INDEX:SKFI + INDEX:SKTH / 2 to INDEX:SLFI + INDEX:SLTH / 2.But the point I wanted to make was the 2022 bear market we all experienced. Have a look at the imagine to help explain.
Note
One final comment regarding the importance of context - those signals appearing outside the lower threshold of the longer term LRC would represent the highest probability trades. Those would have been the ones falling below that yellow line of the LRC from the image above. So juicy! Again, educational purposes only. Not financial advice, as I am not a financial advisor. Just a crazy man out on the Internet. Do you homework and always paper trade any strategy you see.
Note
Ok, I have to highlight this one. Build on the META above, but focused on MSFT this time. Just saying. Not financial advice, as I am not a financial advisor. So do not invest your hard earned dollars. You will lose money.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.