In this study we look at how Project Z prospects potential trades in TLT and we update the Pivot Impulse indicator with a new look, a mean reversion algorithm based on the dynamic expansion and contraction of the daily pivot point range. Project Z is the workhorse of the current study and continues to deliver respectable results…including a signal to close the open Long trade at Tuesday’s close. One of the attractive features of TLT relative to other issues is that it’s price behavior has a high correlation with the technical indicators that I use: daily pivots, moving averages, the VIXEN and, in this case, the Pivot Impulse. One problem with undertaking any in depth study of TLT is that it needs to be multi-faceted and to examine non-correlated factors that do occasionally converge to produce very high probability trading signals. This is the first part of that study…we’ll look at building a robust TLT trading model in subsequent posts and as time and space permit.
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