The ProfitTrader™ cycle-based trading methodology offers powerful tools that often allow for early identification of cycle highs and lows. Once a high/low has been identified, the component parts of the cycle are used to set time expectations for the next high or low. Cycle analysis can be readily learned through the application of the ProfitTrader™ methodology and software.

Click on (1) to begin:

It is fundamentals that move the markets, but you have probably noticed that the fundamental picture is the most bullish at tops and the most bearish at bottoms. Cycle analysis of the stock, financial and futures markets assumes that at any point in time, the then current fundamental information available is relative only to the current price structure, and that fundamental events will occur to move prices in the direction of the cycle.

(2) ProfitTrader™ OSCILLATORS
The ProfitTrader™ oscillators show oversold and overbought levels in a market. They are used to determine trend, and to generate mechanical buy/sell signals.

  • The Double Stochastic oscillator (DBS10) is a powerful trading tool and trend indicator that generates high-probability Mechanical Buy/Sell Signals that also serve as identifiers of cycle bottoms and tops. The accuracy factor of the Bressert DoubleStoc10 Buy and Sell Signals is approximately 70%.
  • The Bressert DoubleStoc 5 tends to show the smaller cycles and generates Buy and Sell Signals that are up to 90% accurate for the shorter-term cycles. It also interacts with the DoubleStoc10 to form Buy and Sell Patterns.
  • The DBS10 and DBS5 are powerful stand-alone oscillators that generate high-probability Mechanical Buy/Sell Signals. When the DBS10 and DBS5 Buy/Sell Signals and Trading Patterns are combined, they become even more powerful and are frequently followed by substantial moves, most often in the direction of trend.
  • The Bressert BLine oscillator generates Buy/Sell Signals that are even more accurate than the Bressert DoubleStoc in identifying cycle tops and bottoms, 80% and higher depending upon the market and time frame. The BLine Buy/Sell Signals combine well with the DBS10 Buy/Sell Signals, often confirming a Double Stoc Signal with a BLine Signal, the following bar. A combined BLine/DBS10 Signal often occurs at significant tops and bottoms.

Based on Oscillator and Price patterns, the Mechanical Buy and Sell Signals are approximately 70% accurate in identifying cycle bottoms and tops.

The most important aspect in trading the market is trend. The only "Holy Grail" of trading is -- Trade with the trend; if it is up, buy the dips; if it is down, sell the rallies. Once trend is identified, cycles are used to buy bottoms in the direction of trend, if up; or sell tops in the direction of trend, if down. Also, using cycles, we can often anticipate trend reversals.

(5) ProfitTrader™ TRAILING STOPS
Once you have determined trend, entered a market and placed your initial protective stop, you must decide where to take a profit. Reliable trailing stops can make the difference between big profits and small profits. All too often we nervously grab a small profit on the first reaction only to see the market take off once we are stopped out. The ProfitTrader™ Trailing Stops are designed to follow prices as closely or as far away as your trading temperament dictates. They provide the flexibility to follow prices into a trading cycle reversal with a tight stop to minimize profit give back, or to give a market room to let profits run in the really big moves.

  • The ProfitTrader™ Short-term Trail Stop Indicator is a fast moving mathematical stop to lock in a quick profit, often as a trading cycle reverses.
  • The Long-term Trail gives a market more room for price fluctuation to trail the bigger moves. Using these stops eliminates the need to wait for a trading signal in the opposite direction, or the constant re-evaluation of mental trailing stops.

ProfitTrader™ Trailing Stops lock in profits from cycle tops and bottoms in all time frames, in all markets.

Cycles are the only technical tools that allow reasonably accurate forecasting of future tops and bottoms. The cycles in our analysis are as long as 4 years for the Stock Market, and as short-term as minutes or ticks for intraday trading. With the ProfitTrader™ Timing Bands you can forecast the most probable time periods for future tops and bottoms and plan your trading strategy accordingly.

Most cycles top and bottom when a market is overbought or oversold. While the BLine and Double Stoc oscillators show these extremes when the oscillators are above 90 and below 10, the Keltner Bands and Real-Time Detrend will often show the extremes a market can reach. When the oscillators are overbought/oversold and the markets reach the extremes indicated by the Keltner Bands and Detrend, a trading signal in the opposite direction will frequently confirm a cycle top or bottom.

ProfitTrader™ includes two detrends - The Centered Detrend and the Detrend RT. The Centered Detrend was used by the Foundation for the Study of Cycles to determine cycle lengths in the thousands of cycles researched by the Foundation. Combining the Centered Detrend and the Detrend RT with the 10DoubleStoc oscillator will show the current cycles in real-time.

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