“FND” TECHNICAL INDICATOR

For a technical analyst, the most difficult and complicated thing is not being able to make the right timing to BUY/SELL, which is in fact the essence of the matter. Sometimes, the analyst decides to BUY in such an inconvenient time that declining starts immediately after buying, thus resulting with loss; or earns a lot in a rising period but holds the merchandise for a time more than necessary expecting the upward trend to continue, but instantaneously an unexpected decline starts before realizing profits, probably resulting with loss again. When to enter and when to exit the market?  Essentially and basically a technical analyst wants to know this.

What is FND? FND is a Technical Indicator like MACD, MOM, CCI, RSI, Stochastics etc. Technical indicators are the basis for Technical Analysis; which is an essential and inevitable tool for a technical analyst to know when to BUY or SELL.

As experienced, FND performs better than even the best indicators that are widely used in the market.

This Method can be used in money market, capital market, commodity market, precious metals market, and future options market. In other words, this Method is not only applicable to Stock Market, but also applicable to financial market instruments such as Foreign Exchange, Cross Rates, Interest rates, Gold, Silver, and to Commodity Exchange markets. In short, this System is applicable to any exchange market where the buying and selling price movements are determined by human, these may also include Cocoa, Tea, Hazel-nut, Oil, Iron, Aluminum, Copper, Nickel, Naphtha, Wheat, Corn, Plastic Raw Material, LDPE, HDPE, PP, Cotton, Sugar, Coffee, Paper, Cardboard, Live Animal

FND indicator is a mathematical and analytical method/tool, software. It produces signals by itself automatically without an interference of a human being. By using FND indicator, as in all other Technical Indicators, the analyst derives his/her own comments and investment decisions themselves.

Validity Conditions:  As in all other Technical Indicators, FND Indicator works under normal market conditions, but does not work during instantaneous / out of control / unexpected changes periods counted as force-majeure periods such as wars, acts of nature, instantaneous and abrupt economical & political changes, immediate devaluation.

Why FND? Almost all Technical Indicators in the world don’t work with the same performance in declining, rising and horizontal markets at all. Even, some indicators produce indications conflicting to one another. For this reason, Technical Analysts are strained while deciding to act and forced to use several indicators at the same time. Besides all these, none of the Technical Indicators’ reliability exceeds 70%.

FND indicator is developed to satisfy these needs. FND indicator has reliability close to 85%, and can be used alone without a need to use several indicators at the same time. Moreover, it is the only Turkish Technical indicator created until now.

Can FND indicator be used by companies? Yes, companies can use FND indicator by paying a licence fee. For this, contact with Global Elektronik Ticaret Turizm Pazarlama ve Temsilcilik Ltd. Şti.

How does FND work? FND works graphically as all other indicators do. FND indicates the rising periods (as highlighted with blue areas in the first graphics below) before rise starts and after it finishes. In other words, it indicates the trend changes. Thus, the Technical Analyst’s decisions let him/her to stay always in the rising areas, and keep away from declining areas as shown by yellow areas.
 

FND produces signals in accordance with the interaction of 4 different lines one another in the chart. Lines are: Percentage Change (blue), Moving Average (red) and two Polynomials (green and black). Primary FND positions are: “BUY”, “Rising DON’T SELL YET”, “SELL”, and “Declining DON’T BUY YET”. Secondary FND positions are: “HORIZONTAL” (No direction), and “SLOW RISE”.

“BUY” POSİTION: Black line, is above the red line. Besides this behaviour, blue line, is above the red line more than 3%. These two behaviours should exist at the same time to say that it is a “BUY” Position. This position says that declination has already ended and rising started.

“Rising, DON’T SELL YET” POSITION: Wait for the end of rising, be ready to sell. Rising is not finished yet unless black line intersects red line from the corner downwards. In this position rising is continuing. Formation of the areas (shown by light blue) over green and black lines indicate that rising is about to finish and “SELL” Position is coming soon.

“SELL” POSITION: Black line intersects red line from the corner downwards, which means that rising is finished, and declining is about to start.

“Declining, DON'T BUY YET” POSITION: Wait for the end of declining, be ready to buy. One shouldn’t buy until  the black line intersects the red line from the corner upwards. In this position, declining is continuing and not finished yet. Formation of the areas (as indicated by light blue color) under green and black lines indicates that “BUY” position is coming soon.

“DON’T SELL YET” Or “DON’T BUY YET” POSITION: Now horizontal; but  ready to change trend up or down any time. The direction of the trend is unknown. Black and red line overlap each other or tangent to each other.

“SLOW RISE” POSITION: Black line, is above the red line. Besides this behaviour, blue line is below the red line or less than 3% above the red line.

Has it been tested? The reliability of the FND Indicator is being tested periodically. Tests are summarized below.

Result of the test done in 2000: ROI 103% per annum

Result of the test done in 2006: ROI 74.5% per annum

Result of the test done in 2007: ROI 34.3% per annum

Result of the test done in 2008: ROI 27.9% per annum

Result of the test done in 2009: ROI 122.7% per annum (live test is continuing)

In all these virtual tests, stocks are selected in groups either by first letters or as blocks of ISE 30 stocks, and BUY or SELL is done according to the mechanical signals produced by FND Indicator without the interference of external analysis or evaluation like human experience, basic analysis, market knowledge and else at all. If used, for sure, the result would be more magnificent.