based on a proprietary price reversal pattern and
determines current structure of the
market but not necessarily the anticipated action.
A daily or weekly trend can NOT reverse immediately
from UP to DOWN** -- without first generating a minimum
of two NEUTRAL signals in the interim.
UP/NEUTRAL trend is a trend which was previously in
an UP trend and has closed below the neutral point
on an appropriate basis (weekly trend must close
below the neutral point on a weekly basis, etc.).
DOWN/NEUTRAL trend is a trend which was previously
in a DOWN trend and has closed above the neutral point
on an appropriate basis (weekly trend must close
above the neutral point on a weekly basis).
a trend reverses from UP to DOWN on the Weekly
Re-Lay™ --when one week it shows
UP and the next week DOWN -- it means that the market
had already generated two NEUTRAL signals, managed
to get back above the NEUTRAL point (re-entering an
UP trend), but subsequently broke down (without setting
new highs in the interim) and closed below the filter
(triggering a reversal to DOWN).]
are projected ranges for the upcoming period (day,
week, month, etc.) and can be used as the ideal level
from which to initiate positions if tested by mid-period
(day, week, month...).
who want to trade off these levels should look for
corroborating support or resistance and utilize 1-3 day trading
signals (if trading off weekly or monthly support
or resistance) to initiate or confirm positions.
average 1-8 weeks in duration. Traders following intermediate
(or long-term) trades should disregard long-term signals
unless attempting to trade both.
trades are those expected to last more than two months
and should be taken or traded independent of intermediate
Reversal™ is a key reversal
(lower low and higher close -- or higher high
and lower close -- than previous day) which
closes beyond the 2nd close prior (thus
reversing 2 closes instead of just 1).
This indicator is the trigger signal for aggressive
1-3 day trades.
Close Resistance/Support™ focuses
on 2nd previous close as a significant
level of resistance/support.
two successive key reversals in the same
direction. In the case of a high,
a market will spike above the previous days
high and close lower than that days
close. On the following day, it will again
spike above the previous days high
(the day of the initial key reversal) and
again close below that days close.
This pattern is rare and primarily seen at
MAJOR turning points.
Reversal™ is two successive
key reversals in opposite directions.
In the case of an up-trend, a market will spike
above the previous days high and close
lower than that days close. On the following
day, it will spike below the second days
low and close above the second days close.
A buy signal would be confirmed by a close
above both of the two previous closes -- thus
creating a 2
LLR, LLS, HHR, HHS, LHR and HLS™are
calculations between successive "H"ighs/"L"ows
or "S"upport for next
tick. The calculation projects the difference between the
two recent "H"s
or "L"s from the
most recent. [i.e. HHR = (High
2 - High 1) + High 2 = Resistance
for ensuing period... High 2 = current high, High 1
= previous high]
LLH & HHL™ are
similar to the LLR and HHS --
just not respective of time.
the calculation between two successive Highs
(#2 high must be lower than #1) used to project a subsequent Low
(calculate the difference between the two Highs
and subtract it from the second high).
the calculation between two successive Lows
(#2 low must be higher than #1) used to project a
subsequent High (by calculating
the difference between the two Lows
and adding it to the second low).
either case, the difference can also be multiplied
by 1.618 and by 2.000 before adding it to the higher
low, or subtracting from the lower high, in order to
project two additional levels of resistance or support.
SPR, SPS™ are Symmetrically
Projected Resistance/Support where the
current ticks range (whether daily, weekly,
etc.) is divided in half. The resulting amount is
added to the close to determine the SPR™ for
the following period... or subtracted from the closing
price to determine the SPS™ for
the next period.
preceding levels are most effective and most accurate
when tested early in the respective period (i.e.--early
in the week if weekly resistance, early
in the month if monthly support, etc.).
The second most effective time is in the middle of
the period (see comments on V and Inverted
V™ refers to a mid-period reversal.
A Monday High, Wednesday Low, Friday New Intra-week
High = V™. A Monday
Low, Wednesday High, Friday New Intra-week Low
= Inverted V™ . Similarly,
an early-month high, mid-month low and late-month
new high would be an intra-month V,
a trending week or month (Monday low & Friday
high or Monday high & Friday low, as well as
early-month low and late-month high or vice-versa).
variation to this is common in the S+P and involves
a sharp move in one direction on Monday (or the first
trading day of the week or month), which is quickly
annulled by a spike and abrupt reversal on Tuesday
morning. The market will then continue in the same
direction (contrary to the Monday fake-out)
for the remainder of the week.
MAC™ , AMAC™ & MARC™ (8
High, 8 Low, 21 High, 21
Low, etc) are Moving Average Channel, Adjusted MAC & Moving Average Replacement Channel
based on the average of a predetermined number
or past highs or lows.
principles are just that: PRINCIPLES. They should not
be treated as the Holy Grail and should only
be implemented within the context of a disciplined
trading strategy -- where money management should always
take precedence! (See Tech-Tip™ Reference
Library for addl details & examples.)
S. Hadik -- Editor ©2009 ITTC E-mail
us for more information www.insiidetrack.com
INSIIDE Track Trading
Corporation PO Box 2252 Naperville IL 60567 630-585-9218/630-585-5701
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