* DARK GREEN (GO) – Bullish: High probability of increase
* LIGHT GREEN – Neutral Bullish: minor probability of increase or flat
* PINK – Neutral Bearish: minor probability of decline or flat
* DARK RED (STOP) – Bearish: High probability of decline
FAB Indicator Effectiveness
Using computerized signal tests, we gauged the FAB indicator’s effectiveness at generating BULLISH signals. We applied the indicator on weekly charts of the SPDR S&P 500 ETF Trust (SPY), using the S&P 500 Index as the benchmark. Over the 13-year test period, the FAB triggered a total of 139 BULLISH views, with 81% of them resulting in gains one year later, generating median returns of 7% compared to the index’s 1%. Probabilities above 60% confirm an indicator’s ability to provide solid triggers. Signal tests and back test details available upon request.
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