ebook Chapter 4
Our Two Indicators + 1 helper
In this chapter I will describe each of our two indicators to you. I will also explain a third that we use for convenience. By the time we finish this chapter, you will have met three very good, new friends who may help to introduce you to a whole new way of life and freedom. I hope you enjoy their benefits as much as I do.
There are generally two types of market conditions that we find in all free-trading markets around the world. They are...
1. Trending – a decisive, sustained, upward or downward price movement, and, 2. Trading Range – generally sideways price movement that gently rolls like waves
In the past, we applied different indicators for each of these two market conditions. However, with the recent improvement of our indicator algorithms, this is no longer necessary. Now, we are able to work profitably with the same two indicators in all market conditions and in all time frames. Life just got a whole lot simpler!
IMPORTANT NOTE! That said, just so you know that our system is not completely perfect, there is one type of market condition that causes us to lose some money. When the market goes fairly flat, sideways, with only slight rolling price action, that small action can trick our indicators into positions that do not work out well. Most Trading Systems have this same problem. In those infrequent market conditions, we lose some money. However, we lose relatively small amounts of money if we are playing by the Trading Rules properly. Soon, after a small losing period, the markets always kick back into high gear and grant us very substantial profits again.
Here are our technical indicators...
1. Mars Line 2.0 The darker (darker than the Uranus line below), multi-color, Mars line is a most amazing indicator! In fact, I have never seen another indicator do this kind of work better than our Mars line. Our Mars line is both very fast and very smooth. We depend on the Mars line for stability and also for fast response. When we are in a Trending market position, we always remain in that market position until the Mars line reverses its direction. Only when the Mars Line reverses its direction do we accept that as our exit signal. I will be explaining our market trading signals and rules further on in this e-book.
The Mars line algorithm is not calculated on single time frame cycle momentum. It is calculated on a number of adaptive, cyclic factors that include "multi time frames". The Mars line is entirely capable of following a long, sustained, trending price movement all the way to the very end, thus extracting the maximum profit from every single good market move. If you have much experience with technical indicators, you will quickly realize the beauty of this indicator. Please see the price chart above for a good idea of how our Mars Line behaves in different market conditions.
2. Uranus Line 2.0 This is our lighter-shaded, multi-color, Uranus line. It works with a unique algorithm that actually has nothing to do with individual cycle momentum either. This indicator basically detects and averages several different, "single time frame", semi-dominant, larger cycle periods that are present in the current market price series. The Uranus line indicator functions as a sort of “gatekeeper”. We never, ever enter a new market position until price has successfully penetrated through this line at, or near, the end of the 360-minute price bar. The Uranus line serves as an amazing support and resistance tool. Quite often when we see an apparent price reversal, we then see market price head directly toward the Uranus line. Then, as price approaches, touches, or slightly passes through the Uranus line, it will stall. We often see tremendous support or resistance around this Uranus line level. Price can “hang out” right at, or near the Uranus line for many minutes or even for hours sometimes.
Then, finally, after the “stall out” period is over, price will either bounce back in the direction from which it came (support or resistance), or it will break through the Uranus line with “high energy” and take off sprinting in the direction of the new trend. We are always very cautious as price moves close to the Uranus line. Whipsaws can occur here and it is usually best to wait until the end, or near the end, of the 360-minute price bar before making a final decision of whether to enter a new market position or not. I will have more to say about these crucial, decisive moments and how to make these decisions in a very quick and simple manner. As you can see, the Uranus line is green when there is upward, multi, semi-dominant cycle harmony, signaling an uptrend. The line turns yellow when different period, semi-dominant cycles are conflicting, resulting in flat, sideways price movements. And the line turns red when the cycles are lined up harmonically, moving down together.
3. Jupiter Line 3.0 - "The Helper" Below, in subgraph 2, you can see our "helping" Jupiter indicator. It is NOT part of our Trading System. We only use it as a convenience. As you can see, the light blue Jupiter cycle line works very similarly to our Mars line. The light blue line is NOT the key here. The thing I like to watch on this Jupiter indicator is the yellow, momentum line. The yellow momentum line normally pivots well before the light blue line. Watching the yellow momentum line, we normally see the price trend change somewhere between the yellow pivot point and the zero-line cross over. Can you see it?
There is one, very important point for me to make here. The Jupiter indicator is extremely accurate in a generally sideways, trading range condition. When there is a strong trend in progress, this indicator is of very much LESS use. It can be tricky to interpret sometimes. Thus, it is NOT part of our Trading Rules, nor our Trading System. It is only a "convenience" under the right conditions.
Please... ...e-mail me if you have any questions or doubts about the explanation of these three indicators. It is extremely important that you understand each one well before we move on to our Trading Strategy and our Trading Rules. When you see how the indicators work together, it is like watching a well-oiled, factory machine cranking out Lamborghinis. It gets downright exciting sometimes.
Chapter 2 Going Public With My Discovery Chapter 3 Trading System Background Chapter 5 Our Trading Strategy Chapter 7 The MARKET WEALTH MATRIX Chapter 8 Your Automatic e-mail Alerts Chapter 9 Your Final Preparations for Market Wealth
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