This leading indicator has been my widely coveted, primary trading weapon for several years. Awesome with Stocks, Futures, Options and Forex! If price goes up - you make money. If price goes down - you make money.
The only way you can lose on a straddle is if price does not move Pretty Impressive So Far, Right? It is the strongest and most reliable of all signals. Every trade is posted - There are over of them! Required Government Risk Disclosure Statement: Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under- or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity.
Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight.
No representation is being made that any account will or is likely to achieve the profits or losses similar to those shown. While there is great potential for reward when trading commodity futures, equities and foreign exchange, there is also substantial risk of loss in all trading.
You must decide your own suitability to trade. Future trading results can never be guaranteed. This is not an offer to buy or sell futures, options or commodity interests. No claims as to past, present or future profitability of these systems are made, and there is no guarantee that the system will provide any profits to traders using the system, and indeed may cause such traders to incur losses. The systems offered here are based on historical formulas which have worked in the past.
However, what has happened before may or may not happen again. You can lose all your money trading futures, equities or foreign exchange and you must decide your own suitability as to whether or not to trade. Only trade with true risk capital you can afford to lose. Only trade markets you can properly afford to trade. Properly funded trading accounts typically perform better than those that are not. We are not CTAs. All With Remarkable Accuracy!
A Big Move is Looming! The Red Bar is a non-directional indicator - Think of the Red Bar as a tightly compressed market such as a spring that is ready to pop. The Red Bar can only trigger during choppy markets when the upcoming big move direction can not be determined. See the example below on how I trade the Red Bar. The Red Bar does not trigger ahead of every big move - Do not expect the Red Bar to give us advance notice of every big move.
However, when you do get a Red Bar, you can be assured a big move will happen. The Red Bar is not a momentum indicator - Do not expect price to take off in one direction after a trigger by the Red Bar. Many times price will breakout strongly, have a large retracement and then take off with a nice trend move. During the trend move, price action will often stair step, therefore do not be afraid of pullbacks.
Possible huge whipsaw - While a big move is almost guaranteed, occasionally the move will result in a huge whipsaw. A big swing to the upside and then another swing to the downside with price ending up where it started. An exit signal is not always generated - While the White and Purple bars are extremely accurate in calling tops and bottoms, the exit bars of the SuperADX work totally independent and are not connected to the algorithm of the Red Bar.
The exit barwill not trigger every time you are in a trend trade, so consider it a bonus when it does trigger. You must either have a target or be ready to decide to exit your own trade at all times.
Failure May Happen in Strong Markets - In strong momentum moves, you may see failed reversal signals. To lower the number of failed signals, I like to see price start consolidating sideways and have at least regular white bars just prior to the reversal signal.
In addition, understand that the MoneyLine2 is a slow moving average and will move closer to your entry point as time lapses. Therefore remember to adjust your profit target as time is decaying your original target. Signals can be rare - Do not expect many signals everyday. See my 64 chart workspace image below. Do not expect a reversal signal and then price to zoom towards its target. Price will often move against you after taking a position before heading towards its target. Or price will immediately take off towards its target, get half way there and then see a retracement back to your entry point, then move once again towards your target.
Either way, it is important to use a liberal stop loss. White Bar with Purple Tip. Magenta Bar with Purple Tip. Magenta Bar with Yellow Tip. What are potential downsides negatives to the Reversal Signals?More...