Nine-Box Market Classification System

The Nine-Box Market Classification System as used by Owl Group plays a central role in the daily and weekend reports and helps traders make informed decisions about overnight risk and market posture.

The system classifies the market using two dimensions:

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1. Price Trend: Bullish, Sideways, Bearish
    

2. Volatility: Quiet, Normal, Volatile
    

These two are cross-tabulated to form 9 distinct market states, each with its own statistical implications for tomorrow’s return.  More.....