The Insync Index by Norm North
Here's a method to graphically display the signal status for a group of indicators as well as an algorithm for generating a consensus indicator that shows when these indicators are in sync. The methods described can be used with any group of indicators.
Using the presignal concept as a base, the algorithm for creating the Insync index, which is a consensus indicator, is simple and obvious - once you see it. It works consistently well, almost always outperforming its component indicators. A user should be able to implement and test it, to some extent using many of the more comprehensive technical analysis programs available today. Basically, the Insync index shows that when a majority of indicators is in sync, a turning point is near. By using the index as a filter, large databases can be scanned quickly to identify issues that may be about ready to reverse their trend.
Only a few years ago, analysts could spend a few hours with their personal computers and favorite software programs and come up with several good candidates for trading from a database of 30 or so stocks, keeping up with their studies on an interactive basis. At present, however, considering the abundance of low-cost technical data available and the speed and capacity of current computers, it is not unreasonable for individual investors to want to search through a database of several thousand stocks to find those that offer the best opportunities. What the investors would like to do is check a wide array of indicators of their choice as well as other criteria before making an investment decision.
The problem: Although the information is available when the investors want it, there's just not enough time to go through it all! Looking at the output of three to four indicators for several hundred issues isn't practical. How does an investor condense the information generated by these indicators into a form that conveys only the pertinent portion of each indicator's output? One way is to create a consensus indicator that essentially represents the output of the component indicators, reducing the analysis time required by a factor of the number of indicators involved.