Understanding CFO Line States¶
The CFO Anny Line is a proprietary trend indicator that classifies market conditions into three distinct states based on price structure.
The Three States¶
Accumulate — Strength¶
Color: Teal green (#3ca691)
The asset is showing structural strength. Price structure is aligned in a way that indicates positive momentum and favorable conditions.
What it means: The underlying price dynamics are strong. Accumulate doesn't mean "buy" — it means the structural conditions are favorable.
Wait — Neutral¶
Color: Muted purple-gray (#6B6588)
No clear directional bias. The asset is in a transitional or consolidating phase.
What it means: The indicator doesn't have a strong read. Wait periods often occur between state changes as the market structure reorganizes.
Distribute — Weakness¶
Color: Violet purple (#B767DE)
The asset is showing structural weakness. Price structure indicates deteriorating conditions.
What it means: The underlying dynamics are weak. Distribute doesn't mean "sell" — it means the structural conditions are unfavorable.
State Transitions¶
When the indicator changes state (e.g., Wait → Accumulate), this is called a flip. The get_market_analysis tool shows recent flips with dates and context explaining what changed in the price structure.
Reading Across Timeframes¶
The CFO Line is available on three intervals:
| Interval | Best for |
|---|---|
| 1d (Daily) | Macro trend. The primary timeframe. |
| 4h (4-hour) | Medium-term momentum shifts. |
| 1h (Hourly) | Short-term conditions. |
Alignment occurs when all timeframes show the same state (e.g., all Accumulate). This typically indicates a stronger, more reliable reading.
Divergence occurs when timeframes disagree (e.g., 1d Accumulate but 1h Distribute). This can indicate a pullback within an otherwise strong trend, or an early signal of a trend change.
Important Notes¶
- The CFO Line is an indicator, not a recommendation. It describes market structure — it does not tell you what to do.
- Past indicator states do not predict future states.
- Always combine indicator readings with your own research and risk management.