Hi, I just want to clarify for people exactly what the Neural Index is predicting. First, right from the Vantage Point Disclaimer:
"THE NEURAL INDEX PREDICTS WHETHER THE AVERAGE OF TOMORROW'S CLOSE AND THE CLOSE OF THE DAY AFTER TOMORROW (BOTH UNKNOWNS AT THIS TIME) WILL BE HIGHER OR LOWER THAN THE AVERAGE OF YESTERDAY'S CLOSE AND THE CLOSE OF THE DAY BEFORE YESTERDAY."
So, what this is saying is that if the Neural Index today for a market is 1. And the close of yesterday was 1.2039, and the close the day before yesterday was 1.1987. Then the average of the next 2 day's closes will most likely be greater than the average of (1.2039 + 1.1987)/2 = 1.2013.
So if the neural index is 1, then most likely (Tomorrow's close + The day after Tomorrow's close)/2 > (Yesterday's close + The day before yesterday's close)/2. And if the neural index is 0, then most likely (Tomorrow's close + The day after Tomorrow's close)/2 < (Yesterday's close + The day before yesterday's close)/2.
I'm trying to come up with a good way to use this information to predict a strong trend direction on a given day. If the Index is 1, it doesn't mean that the market price will increase over the next 2 days, it just means there is a high probability that closes of the next 2 days will average out greater than the average of the closes of the 2 days before the neural index was given. I hope this clarifies what the Neural Index is predicting for people.
"THE NEURAL INDEX PREDICTS WHETHER THE AVERAGE OF TOMORROW'S CLOSE AND THE CLOSE OF THE DAY AFTER TOMORROW (BOTH UNKNOWNS AT THIS TIME) WILL BE HIGHER OR LOWER THAN THE AVERAGE OF YESTERDAY'S CLOSE AND THE CLOSE OF THE DAY BEFORE YESTERDAY."
So, what this is saying is that if the Neural Index today for a market is 1. And the close of yesterday was 1.2039, and the close the day before yesterday was 1.1987. Then the average of the next 2 day's closes will most likely be greater than the average of (1.2039 + 1.1987)/2 = 1.2013.
So if the neural index is 1, then most likely (Tomorrow's close + The day after Tomorrow's close)/2 > (Yesterday's close + The day before yesterday's close)/2. And if the neural index is 0, then most likely (Tomorrow's close + The day after Tomorrow's close)/2 < (Yesterday's close + The day before yesterday's close)/2.
I'm trying to come up with a good way to use this information to predict a strong trend direction on a given day. If the Index is 1, it doesn't mean that the market price will increase over the next 2 days, it just means there is a high probability that closes of the next 2 days will average out greater than the average of the closes of the 2 days before the neural index was given. I hope this clarifies what the Neural Index is predicting for people.
Making my living one pip at a time.....