Our smart money indicator was derived from our famous Nielsen Supply Demand indicator and it gives you another dimension when looking at the buying dynamics of a stock.

 

When you see buyers becoming more aggressive, there is generally a reason. It may be an impending announcement or it could simply be that investors believe the stock is undervalued. Either way, it is a good short term indication that the buying pressure is increasing and the share price often follows.

 

 

 

 

 

We have programmed our system to look for situations where we can see Smart Money entering on a sustained basis and deliver the results to you daily.

Wouldn't you like to know when a high probability trade is about to happen? Of course you would. Especially if you are a CFD or options trader.

 

 

 

Using the latest state-of-the-art stock market scanning software combined with our resident Technical Analysis expert, we have come up with a powerful market scan that produces stocks with a high probability of changing direction.   Most text books will normally teach you to only trade in the direction of a trend. This is generally fine advice, however you will miss out on a big slice of the action as you patiently wait for the price to turn a corner and then confirm that a new trend has started. A much more exciting and aggressive way is to try and predict when a run is petering out and jump on board as soon as it changes direction. By picking a change early, you can turn short term price runs into profitable ones.

 

 

 

We have programmed and backtested a complex set of parameters into our scanning tool which tries to predict when the demand of a stock is strengthening or weakening. Our technical analysis includes looking at factors over the previous few weeks like Relative Strength Indicators (RSI), Moving Average Convergence Divergence (MACD), trading volumes, price actions and more.

 

With our system, we haven't used the normal rules when using these indicators. These are nearly always too slow. Instead, we have pushed the limits to try and pre-empt a trend change. In doing so, we miss out on many weaker or late signals. However, when we do get a signal, it is considered a strong indication that the price direction should be changing soon.

 

As traders, this is exactly what we are all striving for.  Also, since this was designed mainly for CFD and options traders, we only scan stocks in the ASX S&P 300.

 

 

 

 

Below are the results of backtesting our system on a number of different style of stocks. Please bear in mind that if you are a CFD trader, a SELL signal can mean an impending shorting opportunity.

 

 

 

With Woolworths, you can see that the second SELL signal occured just before the next high. The other signals were right on the money. That's the idea of this tool. It's an early warning system. We're not waiting until after the trend has changed. We want to be on it when it does change (or very soon after). Sometimes the prediction is instant, other times it's a few days early. Sometimes, we even get false signals. That's the nature of the stock market. It's impossible to get it correct 100% of the time however, we are trying to get it right more than not.

 

 

 

 

Santos only gave two SELL signals just before the high of around $12.50. However, they were good ones. The stock climbed for a few days after and then started a steady fall to $9.00. Even if you only traded the first drop, you could have profited from a fall of over $1.

 

You will also note that no other BUY or SELL signals occured even though there were other potential trades possible. That's because our system only looks for strong signals of a run weakening.

 

 

 

 

 

 

Only one strong signal occured with SMS Technologies yet it could easily have produced a profitable short term trade for you. 

 

 

 

 

 

Resolute Gold had been falling for quite some time. We got a strong signal that the fall had ended just near the very bottom.

 

 

 

 

 

With Perilya Mining, we got a BUY signal just before a quick run from $2.60 to over $5.00.

 

 

 

 

National Australia bank had been in a bull run for a long time. We got a BUY signal just after a short term low point and three SELL signals along the way up. Two of these SELL signals occured just before a short term breather in the bull run. As a trader, you should know that you have to be extra vigilant if you are trading against the trend. However, it is possible to make some profitable trades when going against the primary trend. After all, sometime in the future, the trend will most likely change and the signal could be the beginning of a solid bear run. 

 

 

 

 

With Monadelphous group we got 2 BUY signals just before two price rises.

 

 

 

 

 

With Fox Resources it picked the beginning of a nice 80c price rise. 

 

 

 

 

Commonwealth Bank is also in a steady uptrend. However, it signaled 2 small shorting opportunities on the way up.

 

 

 

 

 

With Beach Petroleum, it picked the strength of the buyers re-entering the stock after a major price fall. On the right hand side we can see multiple BUY signals suggesting that the price will rise again. We'll have to wait and see:)

 

 

 

 

 It picked a $1.00 price fall in the Bank of Qld.

 

 

 

 

If anyone tells you they have a perfect stock picking tool that is right 100% of the time, they'll be lying. The stockmarket is not that kind to anyone.

 

However, if you get it right more often than not, and use good money management rules you will become a profitable trader. After all, that's what it's all about. Our job is to help you with the stock picking component.

 

 

 

 

With ABC Learning Centres. you can see that the first signal was false. However, the next two signals occured approximately one week before a price rise.

 

 

 

 

Another false signal occured with ABB grain, however the second signal predicted the end of the downtrend.

 

 

Every morning the results of our unique scanning tool are posted onto our website for you to see. It's an amazing time saving tool that could seriously increase your chance of success.  

 
 

 

 

1. These scan results are for information purposes only. We advise you to carry out your own research before making a trading decision.

 

2. These tools are based on technical indicators only. They are not based on any fundamental analysis.

 

3. A trading signal only occurs when the stock matches our scanning criteria. It does not produce corresponding exit signals.