Using the Predicted Neural Index (PIndex) For Market Forecasting

Traders trade trends, and no trading software is better at predicting short-term trends than VantagePoint. With its proprietary leading indicators, VantagePoint, leads the industry in trend forecasting. Of all the proprietary leading indicators found in VantagePoint, though, the most accurate and helpful in providing an edge is the Predicted Neural Index (PIndex). Many VantagePoint traders use this leading indicator as the primary “signal” for an impending change in the trend of a market.

The is a proprietary indicator that predicts whether a market will move higher or lower in the coming two days. The PIndex compares two three-day simple moving averages to one another – today’s actual three-day simple moving average with a predicted three-day simple moving average. When the predicted three-day simple moving average is greater than today’s actual three-day simple moving average, the PIndex is “green” indicating that the market likely will move higher over the next two days. When the predicted three-day simple moving average is less than today’s actual three-day simple moving average, the PIndex is “red” indicating the market will likely move lower over the next two days.

The is a highly accurate forecasting tool. According to independent studies, across a wide range of markets, this leading indicator has consistently produced accuracy rates between 75 and 80 percent. With this level of accuracy, no wonder VantagePoint traders have come to rely on this leading indicator as a primary signal for entering or exiting a trade. The PIndex has proven over time its reliability as a forecasting tool, and its value in giving traders the all-important edge is without measure.