Longtime market-structure experts at ModernIR develop the first decision-support analytics platform for active traders predicated on the rules that govern how stocks trade.
Market Structure EDGE LLC has launched www.marketstructureedge.com (“EDGE”), the first quantitative decision-support software platform for active traders to incorporate market-structure signals for portfolio-shaping.
Developed by the founders of ModernIR, the investor-relations profession’s market-structure experts and the largest provider of quantitative equity-market analytics to US-listed companies, this new tool bundles simple metrics to signal whether a stock price is statistically likely to rise or fall in the near-term.
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“The 2020 viral pandemic’s singular effect on the US stock market was to lay bare the disconnect between market form and function and fundamental valuation of shares,” said Tim Quast, founder of ModernIR and CEO of Market Structure EDGE LLC. “You cannot trust stocks to follow historical principles for fair value. To solve that problem, our analytics platform measures where the US stocks comprising 99.9% of market cap are at all times on the arc between Oversold and Overbought, giving active traders high-probability near-term signals on tops and bottoms.”
EDGE is a quantitative platform predicated on the rules governing the stock market, not factors related to corporate financial performance. It’s not technical analysis either. It’s instead a reflection of the effects of rules on stock-prices in short increments.
Few market participants consider how rules governing order-routing, best execution, and order protection affect trade-execution. “That’s arcane stuff,” Quast said. “But it’s the beating heart of today’s stock market, and it’s mathematical and predictive, and a principal directional influence on stock-prices.”
The core EDGE metric is Market Structure Sentiment™, a proprietary algorithm reflecting behavioral-change driving stock prices that offers traders a ten-point scale from 1.0, Oversold, to 10.0, Overbought. A central tendency is that stocks that become Overbought stop rising, and stocks that are Oversold stop falling, offering high-probability directional signals.
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