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The Mosaic Layout

Explore expert resources and tools for successful online trading, designed to enhance your trading skills, manage risk

The Mosaic Layout is used to understand the current market environment. There are 13 concepts in this layout. 

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1. Market Type

2. Market Trend and Range 

3. Market Volatility

4. Market Risk Env 

5. Market Risk Z

6. Risk Z

7. Gainers (WL1)

8. Laggards (WL1)

9. Gainers (WL2)

10. Laggards (WL2)

11. Fundamentals 

12. Next Earnings Date

13. Ex Dividend Rate

1. Market Type

Explore expert resources and tools for successful online trading, designed to enhance your trading skills, manage risk

Market type is a three box classification based on price and the 200 day MA. If price > 102% of the 200MA, market type is bull, if price is < 98% of 200MA, market type is bear, else it is sideways.

2. Market Trend and Range

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ADX14 is used to determine if the market is trending. A value of 25 or greater implies a trending market while a value below implies a range bound market. 

The NDX indicator (looks at the high / low range over a lookback) over the last 10 days established the short term overbought or oversold reading. The NDX over the last 12 months establishes the longer term OB/OS reading.

3. Market Volatility

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The z-score of the ATR% over a lookback period (100 days) establishes the three-box market volatility. The market is either Volatile, Normal or Quiet.

4. Market Risk

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The Risk on or Risk Off posture is determined by the ratio of the moving average of the longer term (i.e., 30 days) to the shorter term (10 days). Typically a Risk off suggests that holding overnight positions should be avoided.

5. Market Risk Z

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The value of the z-score of the risk instrument, in this case the vix

6. Market Risk Z

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The historical value of the Risk Z

7. Gainers (using DJ30 watchlist)

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The components of the DJ30 sorted by 10 day change in descending order to create the list of gainers over the last 10 days.

8. Laggards (using DJ30 watchlist)

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The components of the DJ30 sorted by 10 day change in ascending order to create the list of laggards over the last 10 days.

9. Gainers (Watchlist 2)

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Similar to 7 but a separate watchlist

10. Laggards (Watchlist 2)

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Similar to 9 but a separate watchlist.

11. Funamentals

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Fundamentals of the selected symbol

12. Earnings Date

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Next earnings date of symbols in the watchlist. Important for trading due to big moves that can take place post earnings release.

13. Dividend ExDate

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Date at which a particular stock goes “ex-dividend”. Important as the price of the stock drops by the amount of dividend.

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DISCLAIMER

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Life Long Edge is not an investment advisory services, nor are we registered investment advisors or broker-dealers and do not purport to tell or suggest which securities customers should buy or sell for themselves. Customers should always check with their licensed financial advisor and their tax advisor to determine the suitability of any investment.

It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results are not necessarily indicative of future results. Examples presented on these sites are for educational purposes only. These set-ups are not solicitations of any order to buy or sell. The authors, the publisher, and all affiliates assume no responsibility for your trading results. There is a high degree of risk in trading.

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HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS, IN GENERAL, ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.

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