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Chart 6A - EMA Trend Indicator Shows Bull/Bear Markets With EMA%Diff; BLine Oscillator and B-S Signals

In this chart, the DBS5 and 10 oscillators and signals have been removed. Bull and bear markets are shown based upon the BLine oscillator and Buy/Sell Signals, combined with the EMA Trend and %Diff.

The Bressert BLine wiggles less than the DoubleStoc, generating fewer trading signals. But these signals are often followed by larger moves as seen in this chart. The Bull and Bear trend directions noted on this chart are based upon a combination of the EMA Trend Indicator, and the %Diff line, which often shows a change in trend before the EMA Trend Indicator.

The BLine Buy and Sell Signals are in Window 2, above the BLine oscillator in the bottom window. The green up-spikes are below the Buy Setup Price Bars, and red down-spikes are below the Sell Setup Price Bars. The BLine often generates Trading Signals at trend reversals as at A, B, C, D and E; but also generates a number of trend following signals at smaller cycle tops and bottoms that are often followed by sizable trend following moves.

Trading Signals should not be taken against the trend unless a trend reversal is expected as a longer-term (and larger) cycle tops and bottoms.


Next:
Keltner Bands and Buy/Sell Signals
Keltner Bands are an excellent and powerful analytical trading tool to anticipate Support and Resistance levels in trending moves, and to also identify Support/Resistance levels of Congestion ranges.