Chart 1
From a weekly cycle bottom, the daily trading trend is up until the oscillator turns down and generates a mechanical sell signal; and from a cycle top the trend is down until a weekly buy signal is generated. A Buy Signal is generated with a blue Setup Bar and followed by a red entry dot; a Sell Signal is generated with a purple sell setup bar followed by a red entry dot.The weekly cycle, and the daily trading trend, are up from cycle bottom A to cycle top B. From cycle top B to cycle bottom C, the weekly cycle and daily trading trend are down.
Chart 2
Chart 3
The EMA Trend Indicator is used to confirm the trading trend after a trend reversal.
Chart 4
When both the red EMA and green MA %Diff lines are moving up, the trend is usually up; when both are moving down, the trend is usually down. In this chart, the green MA %Diff was down as the red EMA %Diff moved up topping at X. Such a divergence in direction often shows trend reversals.
Chart 5
When the trend is up, downside retracements to the green DTI line can often be bought when the blue Double Stoc oscillator is oversold; when the trend is down, upside retracements to the green DTI line can often be sold as the Bressert Double Stoc oscillator is at a high level indicating the market is overbought.
Chart 6
When the dark blue weekly oscillator is moving up or flattens at a high level, the Buy Signals generated by the light blue daily oscillator should be taken. As the market moves up, you can see the wisdom of "buying the dips", as each Buy Signal is followed by generally higher prices until the market tops. You can also see that taking the Sell Signals in an uptrend will quickly stop you out with a loss. But once the trend has reversed, as indicated by the weekly oscillator being down or flat at the bottom of the chart, the picture is reversed. The Sell Signals are highly profitable while the Buy Signals are quickly stopped out by the Sell Signals.
ProfitTrader Users - Click here for instructions on building this Chart Template.
Chart 7
When the trend is clearly up as indicated by the Dynamic Trend Indicator, %Diff lines, and/or weekly oscillator as in Chart 6, trading cycle bottoms can be safely bought on retracements back to the up slooping Dynamic Trend Indicator line with initial protective stops placed below the cycle bottoms as at cycle bottoms 1 and 2.
Chart 8
Trading with the trend is much safer as in the cycles 4 and 5, it is much safer than trend reversal sell signals as at 3. When the trend is clearly down as indicated by the down slooping Dynamic Trend Indicator line, and/or down slooping %Diff lines, and/or the weekly oscillator, a price price rise back to test the down slooping Dynamic Trend line can offer a low risk trade in both dollars risked and probability of a continued downmove as at cycle tops 4 and 5.
Chart 9
Although the other indicators are left off, in real-time trading the EMA %Diff, MA %Diff, EMA Trend and weekly Double Oscillator would all be considered in a decision whether or not to take the sell signals at 4 and 5. Once the market is entered, trailing stops shown by the red and green Trail Lines reduce much of the stress and judgement involved in following the market. At each price bar, the stop for the next price bar is given (in the Data Window and/or Expert Commentary). The red Short-term Trailing Stops took you out of the market within a bar or two of a swing low, or cycle bottom. The green Trailing Stop gave the market more elbow room, which is necessary to remain in a market for a sustained downmove. Such a move did not occur from the high at 4, and the green Trailing Stop gave back quite a bit more than the red Short-term Trailing Stop. However, from the entry at 5, the green Long-term Trailing Stop offered the potential for high profits in a sustained downmove; but when this downmove did not occur, the posiition was stopped out on the first bar following the cycle bottom.

Chart 6 Template
To plot the weekly oscillator on a daily chart, follow these steps --

  1. Click insert Symbol; highlight the appropriate price data.
  2. Click Plot; click Weekly; click Properties.
  3. Under Sub-graph, click Hidden to prevent the weekly data from being plotted on a daily chart; click OK and the chart should stay the same.
  4. Click Format and check to be sure that the first dates are the same or very close to each other for Data 1 and Data 2. A sizeable difference in the dates will often cause "Floating Zero" error message.
  5. Click Insert Indicator to go into the Insert Analysis Techniques Window; highlight WBBressert Double Stoc; click OK.
  6. Click Style to make the color dark blue; click Properties, and under Base Study On, click the right down arrow and highlight 2 to have the program use the hidden weekly price data.
  7. Click Sub-graph to put the indicator in the same sub-graph as the daily oscillator; click OK and you should now have a chart similar to Chart 6 with a daily and weekly Double Stoc oscillator in the same sub-graph.

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