Walter Bressert's ProfitTrader 7.0: Buy/Sell Signal Plots - 1
The new Buy/Sell Signal Plots options show multiple Buy/Sell Setups on the same price bar to increase the odds of identifying cycle tops and bottoms as they occur.

The ProfitTrader 7.0™ program has four buy signals and four sell signals, mostly based on oscillator overbought/oversold levels -- the 10 DoubleStoc, 5 DoubleStoc, BLline and OB/OS signals. These B/S signals are designed to buy cycle bottoms and sell cycle tops.

The entry signals occur in two steps, which increase the accuracy of the signals:

  1. A colored Setup Bar is generated by an oscillator turn, or crossover of a moving average of the oscillator (the crossover option for the 5 and 10 DoubleStoc and Bline is only in PT 7.0). The Setup Bar shows the potential for a cycle turning point, as the oscillators are designed to turn at cycle tops and bottoms.
  2. A mechanical Trigger Entry occurs when prices exceed the high of a Setup Bar for a Buy Signal, or drop below the price low of a Setup Bar for a Sell Signal. Waiting for the Trigger Entry will add 15-25% to the accuracy of a signal using only the "close" as the entry.
The oscillators are different for each signal, but all are designed to identify, and turn at, cycle turning points. At times there will be only one Setup Bar at a cycle bottom or top; at others, there may be 2, 3 or 4 Setup Bars at a cycle top or bottom. A single Setup Bar may result in some concern that it could develop into a false or losing signal. But 2, 3, or 4 Setup Bars give more confidence that the cycle turning points will be followed by a sizeable move.
Buy Setup Bars
The chart, Buy Setup Bars #1, shows how the Setup bars plot in ProfitTrader 6.0™. They can also be plotted in ProfitTrader 7.0™, if preferred. The colored indicator legend at the left of the chart matches the color of the Setup Bars for quick reference.

In ProfitTrader 6.0™, a single Setup Bar can cover up one or more additional Setup Bars, and the only way to see if there is more than one Setup Bar is to go into the Format Indicators window and start turning off indicators to see if another Setup bar is uncovered. This may not be much of a problem if you are trading daily/weekly price bars, but is definitely something you do not want to do while trading intraday.

Our remedy for this in ProfitTrader 7.0™ is to plot a single Setup Bar. The indicator defaults to the OB/OS Setup Bar because it has a tendency to plot Setup Bars one bar earlier than the other signals. But the indicator does allow you to choose the way you want to display the Setup Bar(s) and Setup dots. The other Setup "Bars" are then plotted as colored dots below the Setup Bar(s) for a bottom, and above the Setup Bar(s) for a top.
Unfortunately, The TS Platform was not designed to plot these dots, and it was a programming feat to make the dots plot in all markets, all time frames. But on occasion, some Setup dots will still be further from the Setup Bars than we like. The big advantage, even with this visual drawback, is that a cluster-of-dots over several price bars indicate a higher probability of a cycle turning point.
The Buy Setup Bars #2 Chart shows how the Setup Bars and Setup Plots plot in the ProfitTrader 7.0™ Upgrade. The colored indicator legend at the left of the chart matches the color of the Setup Bars/dots.

Compare Pattern A in Charts 1 and 2. In Chart 2 there are three Setup dots in the price bar following the cyan Setup Bar. The red dot is for the high probability BLine, and Setup Plots also show for the 10DBS and 5DBS Buy Signals.

The new Buy Setup patterns shown in Chart 2 plot a cyan Buy Setup Bar for the OB/OS signals, and Setup dots for all other Buy Signals below the price bars that would have been Setup Bars. Now you can easily see when there is a cluster of Setup Bars on one or several price bars.