Since we are basing our trading decisions on only two indicators, our Trading Rules are relatively simple. In essence, we want to be in a market position when our two indicators are in agreement and moving in the same direction. Then, we want to exit from that market position when the Mars line pivots against the direction. It is that simple.

When a market trend changes direction, the Mars line is often the first of the two indicators to pivot into the new trend direction. Then, when price crosses through the Uranus line, it causes the Uranus line to pivot in the new direction as well. When this happens, both indicators are moving in the same direction and this signals our new market entry.

Once we are in a market position and both indicators are moving in the same direction, we simply sit and wait. At some point in the future, the trend will change. The Mars indicator will often be the first of the two indicators to pivot. When the Mars indicator pivots against our direction, we exit from our market position. If all goes well, we collect and bank our profits.

Here below, you can see an example of a new, long entry and exit:

Here is an example of a long entry and an exit

And now, here below, you can see an example of a new short entry, an exit and then a new short re-entry:

Here we see a short entry, an exit and then a new, short re-entry

If this all still seems a bit confusing to you, by reading my free morning newsletter, you will catch on very quickly. Each morning we review the previous day's trading results in all four markets. You can see these Trading Rules being applied everyday and you can see our results.

There is only one minor challenge with this Trading System, but I have found a dependable solution that almost always helps to keep me on track for consistent success. Please allow me to explain...

First, we are working with very slow, 360-minute price bars. Sometimes the market moves against our position during those 360 minutes. Sometimes this unwanted move is enough to cause the Mars indicator to fall out of agreement with our position. If this condition were to last until the end of the price bar, it would trigger a definite exit signal.

So, when this condition is happening in real time, we have to stop and ask ourselves, “What are the odds of this move against my position being permanent or is it only temporary? If the move against me is permanent, I better exit right now. However, if this is only a temporary whipsaw, I need to remain in the trade.”

In other words, if that price move against us was actually only a temporary whipsaw, but if we had interpreted it as a valid, permanent market movement, we would have exited from our position prematurely and thus, missed out on a very likely, important profit opportunity. Unfortunately, this whipsaw condition can happen once or twice during the week. How can we make a good decision when this happens? We need a good solution!

Here is the simple solution...

The simple solution is to briefly analyze a shorter time frame! Any significant, developing price move will first show up on the 23-minute price chart and then it will spread to and become visible on the 90-minute price chart. Finally, it will show up on the 360-minute chart. This is similar to a row of dominos lined up to fall in a progressive sequence.

On my live, shared trading screen in MARKET WEALTH LIVE , I post a 23-minute price chart right beside a 90-minute price chart which is next to my 360-minute chart. All I have to do when the whipsaw condition arises on my 360-minute chart is to quickly check my 90-minute chart and indicators.

Further, you can check out the condition in any time frame for any of our four markets by glancing at the MARKET WEALTH MATRIX on the right side of the screen.

Here is my trading screen with triple time frames for the NASDAQ and S&P

Here is what I look for...

First, let's assume you are in a long position in an uptrend. The market looks like it may be topping out soon. Finally, you see your Mars line begin to go flat sideways and teeter up and down. Will it end up as a valid sell signal or not by the end of the 360-minute price bar?

Here is the key...

If a valid short entry signal has already been “confirmed” on the 90-minute chart, you can be about 88% sure that the Mars line on the 360-minute chart will be confirming an exit from your long position at the end of the 360-minute price bar. Grab this advantage and exit now! This same strategy works successfully almost every time in any potential whipsaw situation. You can use this strategy for both entries and exits, and for both long and short situations.

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