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Overview Index   Pages 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 {16} 17 18 19 20 21 22 23 24 Offer

PROFIT TRADER TIMING BANDS
Cycle projections allow reasonably accurate forecasting of significant time periods for future tops and bottoms. The cycles used in our analysis are as long as four years for the Stock Market, and as short-term as minutes or ticks for intraday trading.

The ProfitTrader Timing Bands, a powerful forecasting and trading tool based on historical cycle tops and bottoms, forecast the most probable time periods for cycle tops and bottoms. Timing Bands for current time are plotted on a chart, but do not show beyond the edge of the chart. However, the exact dates/time periods for forecasting future Timing Bands may be viewed in the MetaStock Expert Advisor.

How Timing Bands are Constructed
Seventy percent of all cycle tops and bottoms have occurred on, or after, the beginning of a Timing Band. Forty percent of the historical cycle tops and bottoms have occurred within the time parameters of a Timing Band. Thirty percent occurred before the beginning of the Timing Band, and 30% occurred after the end of the Band.

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Because price cycles are not exact and can contract and extend, a 20-day cycle will not bottom every 20 days. One cycle might be 15 days, another might be 26-days from bottom-to- bottom. Timing Bands quantify cycles and accommodate this shift in time. Generally, the most symmetrical, balanced and tradable cycles occur within the middle 40%, and the cycles that have a sizeable extension occur in the last 30%. It is the 30% of cycle tops and bottoms occurring before the timing bands that are often the riskiest to trade because often a swing top or bottom can look like a cycle top or bottom until the market makes a quick reversal and stops you out.

When trading the markets, Timing Bands are a guideline to improve the accuracy of the Mechanical Buy/Sell Signals generated by the Bressert Double Stochastic. These Buy and Sell Signals have an average accuracy of identifying cycle tops and bottoms across all time frames of better than 70% that is increased when the signal occurs within a Timing Band.

 

Next: CYCLE IDENTIFICATION WILL GREATELY IMPROVE YOUR TRADING: The Interplay of Cycles Within Cycles