Why this strategy works so well (Ticker Pulse Meter + Fear EKG) Disclaimer: This is for educational purposes only. I am not a financial advisor, and this is not financial advice. Consult a professional before investing real money. I strongly encourage paper trading to test any strategy.
The Ticker Pulse + Fear EKG Strategy is a long-term, dip-buying investment approach that balances market momentum with emotional sentiment. It integrates two key components:
Ticker Pulse: Tracks momentum using dual-range metrics to pinpoint precise entry and exit points.
Fear EKG: Identifies spikes in market fear to highlight potential reversal opportunities.
Optimized for the daily timeframe, this strategy also performs well on weekly or monthly charts, making it ideal for dollar-cost averaging or trend-following with confidence. Visual cues—such as green and orange dots, heatmap backgrounds, and SMA/Bollinger Bands—provide clear signals and context. The strategy’s default settings are user-friendly, requiring minimal adjustments.
Green dots indicate high-confidence entry signals and do not repaint.
Orange dots (Fear EKG entries), paired with a red “fear” heatmap background, signal opportunities to accumulate shares during peak fear and market sell-offs.
Now on the the educational part that is most fascinating.
Load XLK on your chart and add a secondary line by plotting the following on a secondary axis:
INDEX:SKFI + INDEX:SKTH / 2
Now, you should see something like this:
Focus on the INDEX:SKFI + INDEX:SKTH / 2 line, noting its dips and spikes. Compare these movements to XLK’s price action and the corresponding dot signals:
Green and Orange Dots: Opportunities to scale into long positions.
Red Dots: Opportunities to start scaling out of positions.
This concept applies not only to XLK but also to major stocks within a sector, such as AAPL, a significant component of XLK. Chart AAPL against INDEX:SKFI + INDEX:SKTH / 2 to observe how stock and sector indices influence each other.
Now, you should see something like this:
Long-Term Investing Considerations
By default, the strategy suggests exiting 50% of open positions at each red dot. However, as long-term investors, there’s no need to follow this rule strictly. Instead, consider holding positions until they are profitable, especially when dollar-cost averaging for future retirement.
In prolonged bear markets, such as 2022, stocks like META experienced significant declines. Selling 50% of positions on early red dots may have locked in losses. For disciplined long-term investors, holding all open positions through market recoveries can lead to profitable outcomes.
The Importance of Context
Successful trading hinges on context. For example, using a long-term Linear Regression Channel (LRC) and buying green or orange dots below the channel’s point-of-control (red line) significantly improves the likelihood of success. Compare this to buying dots above the point-of-control, where outcomes are less favorable.
Why This Strategy Works
The Ticker Pulse + Fear EKG Strategy excels at identifying market dips and tops by combining momentum and sentiment analysis. I hope this explanation clarifies its value and empowers you to explore its potential through paper trading.
Anyway, I thought I would make a post to help explain why the strategy is so good at identifying the dips and the tops. Hope you found this write up as educational.
The strategy:
The Companion Indicator:
