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How to read the BB Sigma Index (Yin-Yang Index)

Chart Reading Example
BAC Intermediate Yin-Yang Index

Part 1: Center

1. Middle part is the main chart.

Left scale is the price of BAC stock and shown as yellow price line on the chart;
Right scale is the Yin-Yang Index value from 0% - 100% with 50% as the Yin-Yang crossing point;
Color shaded chart is the Yin-Yang value over one-year period with time range shown below;
The blue line shown is the actual trading price line based on the Yin-Yang crossing as trade signal;

2. Top part is the monthly performance relative comparison for buy-hold strategy (yellow) vs. Yin-Yang trading (blue) which show all five down months could have been avoided with Yin-Yang trading.
3. Bottom part illustrates the daily volume.

Part 2: Top

Top right shows the time and date when the Yin-Yang Chart is created;
"Last price" is the last trade price for BAC ($13.56);
"Total trades" shows how many trades are made when applying the Yin-Yang Trading strategy (18);
"Index Trend" gives the Yin-Yang Index Change when the current index is compared to yesterday's index (-0.67% or getting more bearish);
"Previous Index" is yesterday's closing Yin-Yang Index value (3.36%);
"Symbol" field can enter any stock ("BAC" shown here) or ETF symbol to obtain the real-time Yin-Yang Index Chart;
"Risk-Free Interest" is the interest assumed for cash parked when Yin-Yang trading is in action;
"Ending Date" is the input for the one-year chart ending date which is normally set as current date;
"Trading Strategy" is set default as 100% long based on Yin-Yang crossing and it can be set as long/short strategy to increase leverage;
"Trading Frequency" here is set as Standard which will give Intermediate Trend chart (Long-Term Trend uses "Years" and Short-Term Trend uses "Days");
"Loss Aversion" setting is 110% which means investors is 10% emotional overweight to loss vs. gain;
"Volume weight" can be changed to overweight or underweight volume effect on the Yin-Yang Index value.

Part 3: Right

"Current Index" is the real-time value of the Yin-Yang Index when the system is running;
The chart below the Current Index is the zoomed-in view of the main Yin-Yang chart for the last eight days with the BAC price candle chart shown as well;
Traffic Light gives easy ready of the Yin-Yang crossing as a trading indicator (red; yellow; and green) with Yellow to show the Index value is in the range of "45% - 55%" and the trend reversal may be coming;
"1y Price Return" shows actual one year performance for the Yin-Yang Strategy (using Yin-Yang crossing to trade) vs. Buy-and-Hold;
"Max Drawdown" gives the peak to bottom happened during last 12 months for the Yin-Yang Strategy vs. Buy-and-Hold;
"Calmar-Yang Ratio" is a new uniformed performance measurement ratio developed by Dr. Charlie Q. Yang. A larger positive ratio meaning the strategy is better than risk-free investment with good risk-reward trade-offs;
"Volume Trend" illustrates the most recent year, quarter, month, week and day's volume change trend.

Part 4: Bottom

The left part (red noise chart) is the actual statistical sampling of the BAC trading price changes;
The Yellow single-mode bell chart shows traditional way of presenting the price changes to calculate mean (return) and standard deviation (risk);
The middle red/green chart is the resulting dual-mode distribution after statistical processing using the CMBT Theory;
The Pie chart shows the resulting Yin-Yang calculation which illustrates the Yin (bear) is clearly in control for BAC stock (most in red);
The right blue chart with a narrow single-mode chart shows if the Yin-Yang Strategy is applied, the resulting return/risk is much better than the Buy-and-Hold strategy (shown in the yellow single-mode chart).