Megapro uses its 6A financial data to produce two types of trading signals:
Fear Greed Signals and Bullish Bearish Signals.
One of the greatest investors in the world, Warren Buffett, once said that it is wise for investors to:
“Be fearful when others are greedy and greedy when others are fearful.”
Megapro uses quantitative algorithms to generate Fear and Greed Ratings from its 6A datasets. As a result, they make it easier for investors to follow Warren Buffett’s wisdom.
To suit different types of investors (aggressive or conservative) and effectively manage investment position sizes, we provide three levels of Fear Greed Ratings.
Megapro Fear Greed Ratings:
- Fear, Very Fear, Extreme Fear;
- Greed, Very Greed, Extreme Greed.
Fear and Greed ratings are primarily derived from oscillation data. They are mostly used in mean reversion trading strategies.
Bullish and bearish signals are primarily generated by trend data, money flow data, and event data. Some data produces Bullish Bearish signals with a single level rating:
Some data produces three levels of ratings for Bullish and Bearish signals.
Megapro Bullish Bearish Ratings:
- Bullish, Very Bullish, Super Bullish;
- Bearish, Very Bearish, Super Bearish.
Bullish and bearish signals are commonly used in trend-following trading strategies. They are used not only for adding positions, but also for reducing positions (including clear positions), adding hedge positions, and adding short positions.
Megapro Fear Greed and Bullish Bearish signals are medium to long term signals. They cater to swing traders, position traders, and long-term investors. Sometimes investment positions will need to be held for weeks, months, or even years to make the most profit.
We are able to increase our positions with more frequent medium term trading signals because we use a large number of qualified 6A datasets and watchlist stocks and ETFs. As a result, we have less idle cash on hand.
Our trading signals come from 6A diverse areas, and we seek to add larger positions when we see buy signals from multiple As, or to reduce larger positions when we see sell signals from multiple As.
To enhance trading reliability Megapro seeks to combine both Fear Greed Signals and Bullish Bearish Signals:
- When a Fear Signal is triggered, we look for Bullish ratings to buy.
When a Bullish signal is activated, we look for no Greed ratings to buy.
- When a Greed Signal is triggered, we look for Bearish ratings to sell.
When a Bearish signal is activated, we look for no Fear ratings to sell.
When we trade Fear Greed signals, we frequently combine them with Fibonacci retracement levels: 23.6%, 38.2%, 5o%. 61.8%, or 78.6%.
Important: Three levels of fear signals are used as an alternative to the traditional Dollar-Cost Averaging (DCA) method. As a result, fear signals are mostly used on DCA quality stocks and ETFs, such as SPY, QQQ, or stocks with good and solid long-term earnings and fundamentals.
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Disclaimer: Megapro provides data solely for educational or informational purposes. All investment strategies and investments involve the risk of loss. Nothing contained in this website should be construed as investment advice. Any reference to an investment’s past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit. Any decisions or actions based on the information presented here are done at your own risk and discretion.