Market phases

To better identify the long-term phases of the market Market Miracle Advisor provides information that allows you to understand the attitude on the asset by institutional investors and professional investors.

For a better understanding it is appropriate to know that the position of the Institutions on the market is calculated every month, that of the professional investors every week.

Knowing the periodicity of the calculation of the two most important operators of the market we can identify the phases that last :

• for institutions, at least one month, but which can also last for several months and sometimes even years
• for professional investors at least one week but which may be extended for several weeks and sometimes even months.

In this way every trader can, in base to its propensity to the risk, have one information in more on when to consider a signal for its analysis and eventual operativity.

On the pages of the site and in any of our communications you will find

I: followed by a number to identify the stage of institutional investors

P: followed by a number to identify the stage of professional investors.

Of continuation a concrete example taking an old diagram of BPER BANCA in which all the phases are obvious in order to identify them.

In this case the market phase is identified for institutional investors but the logic is the same for professional investors, with the only difference that for professionals the phase changes more frequently.

The phase reported by Market Miracle corresponds to the small number that has been placed next to each month's value of the net LONG / SHORT position of the player Government, Institutions, Banks & Funds i.e. institutional investors.

(phase 1) Accumulation

Institutions have a net SHORT position with respect to the analysed asset, in the previous period their SHORT position was even more SHORT than in the current period.

(phase 2) Rise

Institutions have a net SHORT position relative to the asset being analysed, in the previous 2 periods their SHORT position was higher than it is now.

(phase 3) Euphoria

Institutions have a LONG net position relative to the asset being analysed, in the 2 previous periods their position was less LONG than it is now.

(phase 4) Distribution

Institutions have a net LONG position in relation to the analysed asset, but have reduced their LONG position compared to the previous period.

(step 5) Panic

Institutional investors have a net LONG position in relation to the asset being analysed, but have reduced their LONG position compared to the previous two periods.

(phase 6) Depression

Institutions have a net SHORT position against the analysed asset, and have increased their SHORT position compared to the previous period.

In descending order of riskiness to take a position these are the phases : ( 6 is the most risky ) 6, 1, 2, 5, 4, 3

Obviously to greater risk could also correspond a greater profit, for which this information must necessarily be considered on the signals in order to select eventual suitable entries to the own propensity to the risk.

In synthesis :

• 3 is the lowest risk phase in which you can position yourself on long term trades.
• 6 is the high risk phase, if Market Miracle Advisor has given an entry signal it means that other categories of players are compensating the short position of this player is not indicated for long term trades, usually with a phase 6 the market makes rapid jumps and then returns to previous values.
• 2 is entering a bit early but is suitable for a long term trade.
• 4 it is entering a little late but there is still strong player interest in this asset.
• 1 you are very early so you can get a very good entry price but the wait could be quite long, it is suitable for long term trade
• 5 be careful because the market may soon change course, suitable for short term trades.

At this link you will find a video explaining market phases and their use https://www.youtube.com/watch?v=Ugr-PHq63g0.

For more information on this category and the logic behind it, see page describing the Miracle viewer indicator.

We also recommend reading the Market Miracle Advisor manual and the FAQ FAQ - Answers to frequently asked questions