TAPS Indicators – the Basics

The TAPS (Technical Analysis Point Score) indicator is an easy to understand, graphical way to show the results of complex Technical Analysis (TA) ‘ Studies.’

The simple ‘ slider ball’ can move a total of five notches starting from far left (Weak) to far right (Strong).

If the ball position has moved since the prior period,

What is the Difference between Short term – Intermediate – Long Term STAR Momentum Indicators

Absent a major shift in Market Psychology, local real estate markets tend to maintain a steady trend in one direction. The trend can be up, down or flat. We call this 'market momentum.'

Technical Analysis, and in particular our S.T.A.R. tool, tracks and measures the strength of this momentum. We look at six different momentum markers and divide them into three groups:

Short Term Intermediate Long Term

Similar to a traffic signal,

Slider Balls and Traffic Signal Lights

Question:

When I put in the 50 states as a STAR search using today’s date Aug 16, 2015 to find a desirable market, I see multiple states which are entirely green on their “circles chart to the right” which are ranked below other states which have some yellow in them. This seems to make no sense to me,

Micro Markets and Overall Local Markets

Although it's true, one part of town may be hotter than another part of town (or surrounding area), a rising (or falling) tide moves all boats. Picking a better location WITHIN a market is something you should do, just like negotiating a better deal - but it's the OVERALL market that dictates if you are going to get great or poor appreciation.

Difference between Moving Average Trend Analysis (Inflation Adjusted) chart and Moving Average Trend Analysis (Inflation Adjusted) (TECH) chart

On the Market Scoring Report shows the difference between Moving Average Trend Analysis (Inflation Adjusted) chart and Moving Average Trend Analysis (Inflation Adjusted) (TECH) chart.

Of all the charts and tables we use in calculating local market ‘scores’ – this is the most important chart of all.

We use it for two completely different calculations/algorithms:

1) To determine that market’s appreciation or profitability levels.

Color Vision Deficiency

For our Members who experience difficulty differentiating the red-yellow-green colors in the Momentum Indicators (S.T.A.R. tool), we are happy to make an adjustment by adding the letters R (red), Y (yellow), and G (green) to the colored circles. (See image below)

To make a request for this adjustment, please give us a call (800) 210-0667,

STAR Ranking Results – City (specific)

To  analyze specific cities you should use the Market Scoring Report. However, if you want to see where a specific city falls in the STAR ranking results, please do the following:

1) Click the “Clear Filters’ link under the preset icons to turn them all white.

2) Select “All”  in the ‘Markets per Page”  

Determining areas of potential loan risk based on market cycles

Question:

We are a smaller/mid-sized lender and we are trying to determine areas of potential loan risk given where we believe we are in the housing cycle. What reports might be most relevant? I also suspect that the answer might be different depending on the loan product, as we do both a shorter-term loan as well as provide longer-term 30-year loans.

Market Indicators

Question:

Is the slider on the STAR “Market Finder” results drawing from the same data as the 6 Triggers which display as red, green or yellow circles to the right of the slider?

Answer:

NO, the TAPS score (sliders) has nothing to do with the red/yellow/green momentum indicators; it’s an entirely different set of algorithms.

Wealth Phase Charts – Colored lines – Moving Averages

Question:

How do we interpret the different combination of movements of the three lines in the Wealth Phase charts?

Answer:

The “moving average” lines are used primarily to determine a market’s MOMENTUM.

The STAR Indicator tool (red/yellow/green traffic light icons) was designed to ‘interpret’ the Chart (and its Moving Average lines) to determine a markets momentum so you don’t have to become a chart reader/expert.

TAPS vs. STAR

Question:

In the Training video “LOOK OVER MY SHOULDER” from 2nd qtr 2010, Ken Wade narrates doing a national search to see what the market is doing. Although he says that the markets will be ranked in priority from top to bottom, he disregards the states that are ranked highest in the STAR tool,

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