Since launching in January of this year, TriggerPoint Trading's one-of-a-kind software has successfully called Tops and Bottoms of market trends. Its proprietary color-coded signals and trend lines are the clearest yet. Here is a perfect example of how it works and how it's making the difference in the way people trade.
We can see a perfect illustration of a 15 minute chart that springs at 9:45 am on Feb 17th . The trend of copper is up so as long as this trend remains up, we look for areas to retest and more possible springs to enter the long side of a trade. On the 17th we see a wide bar, high volume close well off the lows approximately mid-range, this tell us that buying came in and the down side correction may be ending. This was a test of support and smart buyers were waiting to get long. A high volume wide bar mid-range close and continuation of higher close bars in up trends off the spring bar is an edge we like to see. TriggerPoint software did a great job in identifying this. What is also key, is the immediately follow thru of upside to this spring. Gary Fullett, Head Educator and Wyckoff Expert, TriggerPoint Trading
- After the low of 4.4155 was identified on the 9:45am bar, the software painted a “possible spring” indicator in yellow, the spring was identified initially on our trending system on red bars (strong downtrend).
- The next bar was still showing the trend in red, and the range was really tight, however we still had an indication of buying coming in as we closed the bar still in mid-range and a higher close from the previous “spring” bar.
- It was not until the 10:15am bar when we saw the change in trend come in as we went to a brown (neutral) trend, this is when the initial “possible spring” indicator changed from yellow to now blue, “possible trend change” , this is the follow thru that Gary was speaking of.
- The range of this bar was very wide with very high volume again and the close in the upper 2/3rds range of the bar. With this type of volume and a change in trend, we look for further upside momentum which was confirmed in the next bar at 10:30am as we see the trend now moving into a light blue bar (weak uptrend), this is also the bar when the indicator now went into its “green confirmed crosshair” state as we say 3 consecutive higher closes in the 15min time frame.
- If you were not sure of when to get into the trade, this may have been a great time to do so especially when you see the close of this bar on the high, more confidence of momentum.
- The next bar comes in green (strong uptrend) and the buying continues.
We see a couple of orange “possible upthrust” indicators, but with the trend still in green (strong uptrend) we wait for further confirmation of a downward move.
- This comes as we get to the highs of 4.5135, now remember what Gary said, we look for a retest of the highs or lows and we see just that.
- At 2:30pm we reached the high, we see a couple of brown bars come in, but not a true pierce of resistance which is now the 4.5135 high!
- Although we did not get an upthrust indicator on that bar, (because the close of the bar was in the upper range) when the change in trend went from brown (neutral) to burgundy (weak downtrend), traders may have been ready to close the long position, (if not already out).
- The high of 4.5135 was again retested at 8:45pm and closed on the low, this bar did give the initial orange “possible upthrust” indicator and proved to be a good indication that selling was taking over.
- When the burgundy bar came in at 9:15pm the indicator changed from orange to purple, meaning “possible trend change upthrust” and with that much of a trend change, releasing the position would have been a great move.
- The next bar at 9:30pm takes us into the start of the red bars (strong downtrend) and this bar changed the initial upthrust possibility to our “red confirmed crosshair” indicator.
This is a great example of how TriggerPoint can keep you informed of trend swings with Springs and Upthrust, and you can stay ahead of the “Edges” of the trading range.
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