How come your MTI index (combining the VVC, RT and BSR) was unchanged today, while all 3 were up?
How come your MTI index (combining the VVC, RT and BSR) was unchanged today, while all 3 were up?
Larre Hoke
shared this idea
It combines the trends of the price of the VVC, BSR & RT into one indicator.
It is not just a straight average of the three.
There are times when the MTI can move in the opposite direction of the other three which is known as a divergence.
One of the things that helped us nail the 3/9/09 market bottom was a divergence between the VVC Price and the MTI.
See the strategy section of the VV Views on 3/6/09 where we described this phenomenon.
“While looking at the All Daily view of the Market Timing Graph, note the similarity between the 07/23/02 and 10/09/02 pair of low points to the 11/20/08 and 03/06/09 low points. Also note the similarity between Bullish Price/MTI divergence of each of these pairs. If history repeats itself, we will soon have a Bear market rally which will peter out; then the Bulls will stampede again.”
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Ken Reso
commented
MTI is a longer term measure (compared to RT and BSR). Additionally, the display is using 2 decimal points, even though the calculation is carried to several/many decimal points. It (MTI) may have actually increased, by less than 0.01.
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Larre Hoke
commented
This seems odd.