|
The Advanced Trader's Package. There are three indicators in the package, that together form a comprehensive trading methodology: Market Direction
Indicator.
Price Level Indicator.When
a trader combines direction indicators and market condition
indicators with support and resistance indicators, he has
a system! With only direction and condition indicators he
may agonize over "were to get in!" CBI one indicators
with "EIGHT" levels so you can do what a Trader
is suppose to do and that is trade!.
Most traders key on market direction not market condition. By doing so they are missing a critical element to their trade plan and that is how do I get into the market. Do I enter on a reaction or do I enter on a breakout. The %C indicator is a market condition index. When tension levels are high in the market - when both the bulls and the bears are being frustrated by lack of carry over in any single direction relative to the time frame they are trading, this indicator gets above 55. In general when it is ascending %C is calling for trading range or choppy market. A condition were you want to fade the breakouts, buy low band and sell high band. In other words sell at resistance and buy at support. However, when %C is descending, it is calling for a trending condition and breaks of support or resistance should get carry over. In other words, your trend following to the next level is getting affirmation of the trend. Furthermore, extremes of +55.00 and -35.00 call for a change to the current market condition. A set up to trade a breakout above resistance or below support is typically when the indicator is above 55. At that level or higher %C is calling for a shift from a dull period of choppy trading to a dynamic trend. When %C is below 35 it is calling for a shift from dynamic trend to a trading range condition and suggest that you look for support or resistance as reversal levels.
|
|||


