What We Do
Investing in stocks can be both exciting and incredibly challenging. Prices move in complex, often unpredictable ways, influenced by countless factors that can change in an instant. What seems like a clear uptrend one day can quickly turn into a reversal, wiping out months or even years of gains. This volatility makes timing crucial but also difficult—buying and holding may work out, but it’s hard to know when the market will turn against you.
That’s where a more systematic approach comes in. Instead of relying solely on intuition or hindsight, our algorithm leverages stock price and volume data to create precise trend lines. By analyzing these lines, we can generate Green and Red Arrow signals that help navigate the ups and downs of the market. It takes the guesswork out of the equation and allows us to track hundreds of stocks daily, providing reliable guidance in a constantly shifting market.
Real World Example
Below is a random stock’s chart.
This chart shows a stock with a sustained uptrend, where buying and holding might seem like a great strategy—especially when looking back. The upward movement and relatively steady increase in price suggest that holding onto this stock over time would have resulted in significant gains.
But let’s dig deeper.
In this zoomed-in view of the stock’s performance over a two-year span, we see a very different story. The initial upward trend peaks and then reverses, wiping out all gains from the previous rally. Investors who held onto this stock saw it perform a “round trip,” with the price returning to its original level after a significant rise. This frustrating outcome highlights the risk of holding through a peak without a clear exit strategy.
The Empire Algorithm can help you avoid most of that churning. Let’s look at that first chart but this time with some trend lines.
In this chart, we’ve added trend lines to highlight upper channels—key resistance levels that the stock struggles to break through during its upward movements. Each time the stock price breaks above one of these lines, it triggers a Green Arrow, signaling a potential buy opportunity as the stock gains momentum.
These upper channels help identify optimal entry points by marking moments when the stock overcomes significant resistance, indicating a continuation of the uptrend.
Now let’s consider the lower channels. When the stock price breaks below these lines, it triggers a Red Arrow, signaling potential sell points to secure gains before a downturn. With both upper and lower channels, our algorithm provides a clear, data-driven framework for identifying opportunities and minimizing risks based on real-time market action.
Here is the same chart with both upper channels and lower channels.
Our algorithm does the heavy lifting by analyzing each stock’s price and volume data to generate precise trend lines. When the stock breaks above a Green Arrow, it signals potential upward momentum; when it crosses below a Red Arrow, it signals a potential downturn. This straightforward approach takes the guesswork out of trading.
With the ability to monitor hundreds of stocks daily, our system automatically identifies high-probability setups without the need for constant chart-watching. It’s a streamlined, data-driven process that puts the stock’s movement in control, allowing you to make confident trading decisions backed by consistent, reliable signals.
Our advanced algorithm analyzes hundreds of stocks daily to identify VWAP-based patterns that historically precede significant price movements. By automating this process, we deliver focused, data-driven insights to help subscribers efficiently spot potential opportunities.
How to Use Our Arrow System
Our advanced algorithm analyzes hundreds of stocks daily to identify VWAP-based patterns that historically precede significant price movements. By automating this process, we deliver focused, data-driven insights to help subscribers efficiently spot potential opportunities.
Daily Updates
Subscribers receive the following each evening:
- Stocks exhibiting developing patterns
- Status updates on pattern progression
- Market environment insights
- Pattern completion rates
Understanding the Signals
Green Arrow
This signal indicates:
- A stock is following a specific VWAP-based pattern.
- The pattern typically develops over 4–5 days.
- The stock is on day 2 of the sequence.
- Historically, similar patterns have led to upward price movements.
Red Arrow
This signal indicates:
- A stock is displaying a downside VWAP pattern.
- The pattern generally unfolds over 4–5 days.
- The stock is on day 2 of the sequence.
- Historically, similar patterns have preceded downward price movements.
Market Context
Our system monitors broader market dynamics by analyzing:
- The S&P 500’s VWAP relationship.
- Breakout success rates.
- Pattern completion statistics.
- Institutional trading trends.
Practical Applications
These signals enable you to:
- Streamline research efforts.
- Spot developing patterns early.
- Validate your existing analysis.
- Assess overall market conditions.
Continuous Improvement
Our system continuously evolves by:
- Adding new signals to a historical database.
- Evaluating pattern success rates.
- Measuring signal accuracy.
- Adapting to shifting market conditions.
Portfolio Strategy Testing
Our data-driven signals support:
- Historical pattern analysis.
- Backtesting trading strategies.
- Measuring performance across various market conditions.
- Assessing pattern reliability.
Time-Saving Benefits
By identifying patterns early, you can:
- Research companies with active patterns.
- Plan potential trades in advance.
- Monitor pattern progression.
- Stay informed on market trends.
Flexible Signal Applications
Our signals cater to diverse trading approaches, including:
- Various timeframes.
- Different position sizing strategies.
- Multiple trading methodologies.
- Customized risk parameters.
The core pattern recognition system remains consistent while accommodating individual trading preferences.
Market Insights
Our system offers detailed analysis of:
- Stocks with confirmed patterns.
- Overall market health.
- Pattern completion trends.
- Institutional trading activity.
Results You Can Trust
Our approach prioritizes:
- Mathematical precision in pattern recognition.
- Robust historical pattern analysis.
- Rigorous market data validation.
- Ongoing system refinement.
Please note: We provide technical pattern recognition and market insights. Subscribers should evaluate opportunities in light of their individual investment objectives.