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
Michael Duane Archer has been an active futures and FOREX trader for more than 35 years. He has worked in various advisory capacities, notably as a commodity trading advisor, registered SEC investment advisor, and branch manager for Heinold of Hawaii. He currently trades FOREX and futures and is involved in several technical analysis research projects.

Copyrighted 2020. Content published with author's permission.

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