Just looking at their historical buy/sell calls on a number of stocks over a 24 month period. Certainly seems too good to be true! What's the catch?
Normally the signals are only based on the last few candles and they have fancy terms for the patterns they make. It seems to me that it doesn't take into account longer term trends. For example, it will put a buy signal on a upwards swing in a long term downwards trend. It would probably be better for the upswing to complete then short the stock rather then buy the upswing and hope people pay higher than what you paid with enough room for you to get out of the stock when it falls again. If they say buy and the stock goes up 3% they say then it's right then when it's up the top of that upswing in the downtrend they say to short and it goes down, they then say they were right again. The site might be useful as a tool to identify opportunities.
It probably does get it right a fair percentage of the time though. Statistically, it would have to be right some of the time given it's a 50/50 chance that a stock goes up and down from any one point excluding extraordinary factors. I would lean towards looking for buy signals in upward trending stocks rather than focus on trying to be the first in on a reversal, or someone looking to pick up the momentum of an upswing in a long term downtrend.
The site may also create a self fulfilling prophesy if enough people use it.
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