Market Environments (ME)
ME is a method for more precisely quantifying the classical idea of trading versus trending markets. It is enormously useful as a complement to most trading methods, money management, back-testing, and performance analysis. It can also be used in risk, portfolio, and money manager analysis.
ME also teases out indicator-like information directly off charts without the need for calculation. Bar charts work perfectly. The market environment concept was discovered by Charles B. Goodman and I have done further development and research.
There are two primary MEs, two secondary MEs, and a single tertiary ME.
Just using the two primaries and secondary MEs can add meaningfully to your trading arsenal.
By Michael Duane Archer