NEoWave Blog

7/14/2016 - NEoWave Staff

Announcing a NEoWave technical achievement

Editor's note: Glenn Neely shared the following announcement with NEoWave subscribers. We're sharing it here, on the NEoWave blog since, as Mr. Neely wrote, "This technical achievement will dramatically enhance my ability to call market tops and bottoms and enhance our entries and stop movements." Here is Mr. Neely's note:

In the early 1980s, when I was just beginning my financial career (and 1-2 years before I began to study Elliott Wave), I developed an order prediction technology called the M.O.A.T. Index. The letters stand for Multiple Order Accumulation Tabulator. MOAT visually displays price levels where market orders are accumulating on all timeframes. Even today, 30 years later, MOAT remains a unique way of looking at, predicting and trading markets. 

When MOAT was created, personal computers didn't exist -- I had to do all the work by hand. I'd collect daily cash data, enter all variables into my HP calculator, run a program and hand-plot the results on graph paper. The MOAT index was great at identifying market tops and market bottoms, which allowed for some rather fantastic historic calls. For example, in 1987, the day of the U.S. stock market peak, MOAT warned (and I warned clients) that the U.S. was at its most over-bought condition in history and was ready for a massive decline!

After the personal computer revolution got underway, and software like Tradestation emerged, the plotting of charts became the “responsibility” of computers. During that transition, I could no longer plot MOAT levels on computer screen charts; so, I gave up the indicator, mostly forgot about it as I began to heavily pursue Elliott Wave (which eventually evolved into NEoWave). 

Just recently, my computer programmer reminded me of "the ole MOAT index" and how it could be programmed into Tradestation to automate the display of information required to detect pending market tops and market bottoms. I'm ecstatic to report that programming is complete! So, for the first time in 10-15 years, I have a fully functional MOAT index that can instantly be applied to all futures and ETF charts!

This technical achievement will dramatically enhance my ability to call market tops and market bottoms and enhance our entries and stop movements -- it should especially be useful when Wave structure is unclear, which has been the case for years, in most markets. With the reintroduction of my MOAT index to the NEoWave Trading service, I expect to see dramatic improvements in our ability to profit from market movements, even when Wave structure is unclear.