VectorVest Views 7/30/04
When you logged on to VectorVest OnLine, VectorVest Canada or opened VectorVest v6.0, you saw The Color Guard. You saw mainly yellow fields at the top and all red fields at the bottom. There were no green fields. If you knew that green means up, red means down and yellow reflects weakness or a transition, you made an instant analysis of the stock market's trend and condition, i.e., the market was in a downtrend and the trend is weakening or transitioning to an uptrend.
The Color Guard reports the daily movements of the Price of the VectorVest Composite, the RT and BSR in vivid color. These colors are assigned to each indicator depending upon whether it is going up or down. Although you don't need to remember the rules, here's how the colors are assigned:
GREEN FIELDS.
CG-Price. A green field in the column labeled CG-Price means that the Price of the VVC has gone higher on both a daily and weekly basis and it has done so from a prior green or yellow condition.
CG-RT. A green field in the column labeled CG-RT may be assigned for one of two reasons: The level of the Relative Timing indicator of the VVC has gone from below 1.00 to above 1.00, or it is above 1.00 and has gone up on both a daily and weekly basis.
CG-BSR. A green field in the column labeled CG-BSR may be assigned for one of two reasons: The level of the Buy/Sell Ratio of all the stocks in the VectorVest database has gone from below 1.00 to above 1.00, or it is above 1.00 and has gone higher on both a daily and weekly basis.
RED FIELDS.
CG-Price. A red field in the column labeled CG-Price means that the Price of the VVC has gone lower on both a daily and weekly basis, and it has done so from a prior red or yellow condition.
CG-RT. A red field in the column labeled CG-RT may be assigned for one of two reasons: The level of the Relative Timing indicator of the VVC has gone from above 1.00 to below 1.00, or it is below 1.00 and has gone down on both a daily and weekly basis.
CG-BSR. A red field in the column labeled CG-BSR may be assigned for one of two reasons: The level of the Buy/Sell Ratio of all the stocks in the VectorVest database has gone from above 1.00 to below 1.00, or it is below 1.00 and has gone lower on both a daily and weekly basis.
YELLOW FIELDS.
CG-Price. A yellow field in the column labeled CG-Price may be assigned in one of three ways: The Price of the VVC went up on both a daily and weekly basis from a prior red condition, it went down on both a daily and weekly basis from a prior green condition, or its weekly trend was not confirmed by its daily movement.
CG-RT. A yellow field in the column labeled CG-RT may be assigned in one of three ways: The level of the Relative Timing indicator of the VVC has gone up on both a daily and weekly basis but is still below 1.00, it has gone down on both a daily and weekly basis but is still above 1.00, or its weekly trend was not confirmed by its daily movement.
CG-BSR. A yellow field in the column labeled CG-BSR may be assigned in one of three ways: The level of the Buy/Sell Ratio of all the stocks in our database has gone up on both a daily and weekly basis but is still below 1.00, it has gone down on both a daily and weekly basis but is still above 1.00, or its weekly trend was not confirmed by its daily movement.
Please keep in mind, you don't need to remember all this stuff. All you need to know is that green means up, red means down and yellow means weakness or transition. It's that simple with The Color Guard.