3S Index Purpose

The main purpose of the 3S Index is to develop or reconstruct your investment portfolio (stock/ETF set).  The 3S Index can show the position of the stock market or stock/ETF set also. Based on the dynamics of the 3S Index, one can assess whether the market “at the top” or “at the bottom”. This allows for insights into investment portfolio prospects and this has nothing to do with the concepts of “overbought”, “oversold” and "volatility" that you know. 

The 3S Index iS/iM is а relative value and resembles an oscillator. This makes it easier to analyze.

Important Point

3S Indexing of the stock market and 3S Indexing of the your investment portfolio (stock/ETF set) are done using the same method. Therefore, in order to obtain important information about the prospects of your stock portfolio, you must to compare  the 3S Index iS/iM dynamics of your stock portfolio with the 3S Index iS/iM dynamics of the corresponding stock market.