Precision Turn On-Line

Precision Turn Calendars

Precision Turn forecasts are available exclusively to subscribers on our Precision Turn On-Line website. They utilize chaos theory to accurately forecast when a market could change direction. This state-of-the-art tool can be used to time trades more precisely by identifying critical high probability turn days. Daily- and weekly-scale trend change dates are posted on our daily and weekly turn calendars up to ten days in advance, while hourly-scale forecasts are posted on our hourly turn calendar 24 hours in advance. These turns highlight "inflection points" in the market. That is, a high, low, or beginning/end of a move. Precision Turn calendars cover 63 futures and commodity markets and 100 top S&P 500 stocks.

Example hourly, daily and weekly Precision Turn calendars

Features of Precision Turn calendars

List of Precision Turn markets

Precision Turn Charts

For detailed analysis of a market's turns, and for a longer-term view of previous and upcoming turns, we provide Precision Turn charts. The charts display a continuous turn-magnitude indicator; spikes on the indicator signal turns. Monthly charts are available for all Precision Turn markets, and long-trend charts are available for the Dow Bond Index and DJIA.

Example Precision Turn chart

Interpreting Precision Turn charts

The Precision Turn Indicator

Market cycle-finding tools have been in use for years, but are subject to some problems that make them difficult to trade. In 1990, Parallax developed a new technique for accurately finding turn dates by applying the "quasi-periodic" oscillator model from non-linear dynamics to historical market turning points. Unlike other cycles tools or "standard" trend change methods such as Fibonacci and Gann, our indicator is based on the exciting new science of chaos. Our research has shown that auction markets are chaotic instead of random, and exhibit very clear patterns with respect to the timing of market turns. It was found that significantly better turn dates could be forecast by ignoring whether a turn was a high or low. More details are available in A New Method of Forecasting Trend Change Dates, published in the September 1990 issue of Cycles Magazine.

As a market participant you are always trying to identify the start of a new trend, regardless of the time horizon of your trades. Most indicators give a signal once a new trend is well under way, increasing your risk and reducing your trading confidence. The Precision Turn indicator will give you the dates of the most likely turning points in the markets well in advance, allowing you to focus your expertise on detecting whether a market is at a top or a bottom.

Turns almost always occur at geometrically sensitive prices, e.g., at trend lines or channel edges and prior highs and lows. Turns are effective for an average of six bars (range is 3-12 bars). The three bars preceding the turn are often consistent. Turns may also occur when there is a high compression before a price breakout.

Frequently Asked Questions

What is a market turn forecast?
Turns mark a change in price behavior or direction. In other words, these timing points mark local price highs, lows, points where price goes flat after rising or falling, or breaking points.

How do I tell which direction?
Typically clients use overbought/oversold indicators, Elliott Wave analysis, point and figure, and channel indicators to determine whether a high or low has occurred. If you plan to only use the turns for trading, we recommend that you stand aside unless it's obvious, such as at a new contract high or low.

Do the turns alternate high-low-high?
Do not expect the turns to alternate. We don't get all of the market turns. The best strategy is to use the turning points for half of your trade, either to pick a better entry point, or to mark a point to take profits.

If a turn fails, does that mean something too?
Yes; it often indicates that a strong trend is in place.



TurnAlert

TurnAlert Reports

TurnAlert represents a unique technical trading tool that combines the new technologies of chaos theory and neural networks. The Precision Turn Indicator provides turn timing information. The turn direction problem was solved in a different manner: using a neural network, it is possible to generalize the relationship between price, time, volume, and sentiment that characterize a top or bottom in price.

TurnAlert brings these two forecasting methods together, along with a simple trading strategy, and produces a report which is included as part of Precision Turn On-Line. The reports are computer generated automatically after the close of the market on the day of the projected turn. (Because we need to analyze sentiment data, which is available only after the close, the TurnAlert report can only be produced after the close on the turn day. The Daily Sentiment Index is provided by MBH Commodities.) Each report contains the direction, the date of the next turn, and a chart of recent daily activity. Price trend channels are shown to assist in the development of a trading strategy, and a trade reverse point is also suggested. We think you'll find TurnAlert to be a unique, consistent, and invaluable trading tool. TurnAlert reports are available for 44 selected markets.

Example TurnAlert Report

Description of TurnAlert Report

List of TurnAlert Markets


Precision Turn and TurnAlert are trademarks of Parallax Financial Research, Inc., CTA.

Disclaimer: Precision Turn forecasts and TurnAlert reports are published solely for information purposes, and are not to be construed as an offer to buy or sell any security.


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