The Daily Numbers Report is produced each morning and is delivered to your inbox by 7am. Designed primarily for day-traders, it can also assist short term swing traders in planning entry levels, exit levels and where to place stops.
Understanding the Daily Numbers
Trading Range Forecasts
The report delivers two independently calculated trading range forecasts for the coming day (TRF1 & TRF2), indicating the anticipated high and low for that day. Each forecast is derived using completely different methodology. Often the two forecasts are in broad agreement but at times they will produce significantly differing results. When this occurs, it will usually transpire that one or other of the forecast is correct. By plotting the predicted highs and lows for each forecast on a price chart, a Buy and Sell zone is created.
The above hourly chart of the FTSE100 shows the TRF1 (Red) and TRF2 (Blue) high/low forecasts for the week commencing 22nd May 2017.
The Forecast Range
The forecast range is again calculated independently of the other forecasts and represents the predicted size of the range high - low for the coming day. This information is of value if a high or low is established early in the trading day as it allows one to measure and forecast where the subsequent trend reversal might terminate.
The market sentiment reading scales from 0 - 100 and offers a unique insight into short-term market sentiment. When sentiment is trending either higher or lower it points to a continuation of the trend, however when readings exceed 90% or fall below 10% a market turn is all but guaranteed within one-two days.
Registering Buy, Sell or Neutral signals, these signals indicate whether today’s high or low will exceed the high or low of the previous trading session. Back-testing has shown accuracy levels in excess of 80%.
Trend High/Low Signals
Registering High, Low or Both, this signal offers guidence as to the daily trend, indicating if the forecast high or low for the day will be broken during the days trading session.
How to trade using the Daily Numbers
Taking a LONG position (Buying Dips) – A BUY should be signalled, sentiment should be increasing and the trend should signal a High break. However, a reading above 90 warns of an impending top, consideration should also be given to the overall trend as indicated by the Key Turning Point Analysis.
Taking a SHORT position (Selling Rallies) – A SELL should be signalled, sentiment should be declining and the trend should signal a Low break. However, a reading below 10 warns of an impending bottom, consideration should also be given to the overall trend as indicated by the Key Turning Point Analysis.