Recommendations by the study are based on calculations of price and volume. The premise of technical analysis is that price movements
can be anticipated solely from analyzing historical data. While there are many different methods and theories used, the four best methods
are: Current Volume Strength (CVS), Moving Average Analysis (MAA), Overall Market Direction (OMD), and Price Movement Analysis
(PMA). These are combined in the study to provide a reinforced signal.
The steps the study takes are:1) Find the Trend via the CVS theory.2) Generate a Recommendation via the PMA theory.3) Determine the chances of a successful trade via the MAA theory if a Buy or Short is generated.
The Right Time StudyThe Right Time Study is a Buy/Sell signal trading system designed to take most of the guess work out of trading stocks, indexes, futures, mutual funds, and options. The Right Time Study, is an add-on to the Trader's Access Software. Thousands of professional and individual investors have used its Buy/Sell signals since 1985. The Right Time Study is turned on at our corporate office and is active the next time you download quotes.
Are you tired of looking at a pretty chart and not knowing what to do?
How many times have you applied a study like stochastics, rsi, or bollinger bands to a chart or scan and then said to
yourself - ok, now what do it do? The Right Time Study is a trading system designed to take most of the guess work out
of trading stocks, indexes, futures, mutual funds, and options. The Right Time Study, is an add-on to the Trader's Access Software and has
been in use since 1985. Once you sign-up for the Right Time Study, it is turned on at our corporate office and is active the next time you
Whether you are an intermediate or long term trader, the Right Time trading system can generate buy/sell signals and help your trading.
The Right Time system is the only trading system ever developed to generate timely buy/sell signals based on a simultaneous analysis of
volume/price and supply/demand. The Right Time Study is built into Trader's Access and can be accessed by performing a scan of your
symbols or applying the study to a symbol on a chart. The system has been used by institutions, brokers, experienced, and novice traders
through out the world.
Current Volume Strength (CVS)
It is widely known that supply and demand control price movements. Simply, the CVS theory is based on the assumption that fluctuations
in supply and demand (evidenced by changes in volume) indicate price direction. The calculations are based on cumulating the daily
volume (the current day’s volume added to the cumulative volume if the price rose, or subtracted if it fell). The resulting number is
compared to the price to determine if the momentum point is up, or down.
A line is drawn to the new CVS point from the latest, consecutive CVS “down” points. If the new point falls on, or below the down trend
line, it is a support point. If it does not, it is compared to the latest, consecutive “up” points. If it falls on, or above the up trend line, it is a
resistance point. The CVS is disregarded if it does not meet either requirement.
Next, the program checks the CVS points and their corresponding prices to see if they line up in a straight line. If they do, the up and down
trend lines are compared to each other. If both lines have slopes above horizontal, the trend is Rising. If both have slopes below the
horizontal, the trend is Falling. All other circumstances create an Unsure trend.
The following trends are generated:
● Rising The symbol is moving up.
● Falling The symbol is moving down.
● Unsure The symbol's trend is unknown and could move up, or down.
Overall Market Direction (OMD - BSI)
For Stocks, Stock Options, and Canadian Stocks the overall market direction is an important factor for determining when to buy and sell.
Almost all stocks will travel with the market direction, even weak stocks. The market’s momentum will strengthen or weaken a stock.
The following market directions are possible:
● Bull Market - The market is moving Up (+10 to +100)
● Bear Market - The Market is moving Down (-10 to -100)
● Unknown - The direction cannot be determined (-9 to +9)
In the Right Time Programs DOS (now discontinued), the Stock Program had the capability to determine the OMD based on an index
which ranged from -100 to +100. The index is now available to you in the Botnick Stock Index (ticker symbol = BSI). Just add the symbol
to one of your lists (designate it as an “Index”). You will be able to chart and apply studies to it.
The reason it is not calculated with in Trader’s Access is to have consistency from user to user. Thus it no longer
depends on the symbols you are following, but is dependent on the symbols we have been following for the last 30 years.
Price Movement Analysis (PMA)
The price movement analysis determines deviations in the current day’s closing price and the stop price. It then looksbackwards at the
symbol’s trend to determine what recommendation should be generated.
The following recommendations are defined:
● Buy/Call Buy the symbol, or buy call options on the symbol.
● Short/Put Short the symbol, or buy put options on the symbol.
● Hold Hold your position.
● Close Close out your position.
● Warning Be careful, the symbol could move in the opposite direction of the trend for a short period.
If a Buy or Short signal appears, the program utilizes the MAA to confirm, or rebut the recommendation. These signals (Buy, Call, Short,
and Put) are further broken down into two categories.
● Primary Signals Appear when a symbol begins a new trend.
● Secondary Signals Appear after a trend has been established.
Moving Average Analysis (MAA)
The MAA is based on the premise that a price cannot deviate from its moving average for more than a short time. When utilized, it
calculates the average price over time and compares it to the actual price to detect relevant deviations. A prediction is then made of a
continued price move in the direction of the CVS’s calculated trend.
A price can be:
● Too close or at the average
● Too far away from the average.
● In between close and too far from the average.
The further a price is below its average the more likely the price will rise back to the average. Conversely, the further above its moving
average the more likely the price will fall back to the average. On the other hand, the closer the price and moving average are to each
other, the greater the probability that they will diverge.
Based on the previous, the programs show the Trend, Recommendation (if the Recommendation is Buy or Short), and what the chances
are of having the pricemove in the recommended direction.
However, there are circumstances where the program may run into difficulty. Interest rates, problems around the world, and weather
reports are short term (a day or two) movers of markets. These are circumstances that most technical analysis cannot consider. The Right
Time Programs analysis of volume can interpret these circumstances.
Signals are not warranted or guaranteed by T.B.S.P., Inc. and may involve risk