Go No Go Charts
The term “go/no go” refers to the pass/fail test process that NASA flight controllers perform to monitor the various systems for operation and readiness before a spaceflight mission launch can proceed.
Investing in the stock market is often accompanied by uncertainties and indecisions. Trading decisions often involve evaluating the upside potential given the degree of risk taken.
The folks at GoNoGo Charts have developed technical indicators that help traders and investors better process the trading data and make informed decisions. GoNoGo Charts indicators revolve around the concept that momentum goes hand in hand with trend analysis. The velocity of price change helps identify the dominant trend and the market’s conviction in the sustainability of the trend. Rising momentum signals the continuation of an uptrend. Declining momentum warns of a weakening trend or an impending trend reversal.
Trend identification is the single-most-important part of technical analysis. By combining statistical analysis (velocity of price change) with the basic principles of technical analysis (trend identification, momentum, etc.), the GoNoGo technical indicator via visual color prompts determine if the market or security is ready to “Go” (buy) or “NoGo” (delayed buying).
Many technical indicators tend to be complex due to the mathematical models involved and are open to various interpretations. The GoNoGo Trend indicators simplify the decision-making process with only two signals – Go (buy) or NoGo (delayed buying). When the trend is the strongest, it notifies the trader by painting the price bar bright blue. When slightly less bullish, the color turns to aqua. The amber bars represent an uncertain trend, often occurring when the trend transitions from bull to bear and vice versa. Pink is bearish, and the dark purple color occurs when the bearish trend accelerates.
The geopolitical events continue to escalate, inflationary pressures skyrocket, interest rates trend higher, mixed economic and corporate earnings, and uncertainties surrounding the Fed FOMC rate-hike have contributed to US market indexes converging toward inflection points.
The pertinent question remains – is this a bear market counter-trend rally (dead cat bounce) or the bottoming process (consolidation) before the resumption of the primary bull trend?
Enclosed below are the GoNoGo Charts on popular markets. A brief review of the major market indexes shows that they are currently at NoGo technical signals.