What is Traffic Light?
Traffic Light, another proprietary indicator, is a long term signal and reflects the health of current market condition.
Traffic Light has 5 colors: Green, Yellow, Orange, Red, and Purple. This indicator has identified exit points in 2000 and 2008 and subsequent re-entry points. When Traffic Light is in green, an individual should follow personal allocation plan to utilize the CAP – Day 1, Day 2 ….. When Traffic Light turns to other color, it is better to be more conservative. For example, when the light is yellow, 50% of allocation plan is utilized. When the light is orange, 25% of allocation plan is utilized. When the light is red, it is time to be conservative. When the light is purple, it is time to re-enter.
Below is video clip on Traffic Light.