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Walter Bressert's ProfitTrader™ Timing Bands

  • Forecasts the next trading cycle topping band and bottoming band from a cycle bottom.
  • Bull markets act differently than bear markets. Combines with the trend direction to make bull/bear, or combined forecasts.
  • Uses the mechanical buy/sell signals to enter/exit markets in the forecasted Timing Bands.

The advantage of using Timing Bands is that forecasted time periods for future cycle tops and bottoms provide a time reference within which the ProfitTrader™ mechanical buy/sell signals often identify cycle tops and bottoms.

Cycles are measured from bottom to bottom. The trough-to-trough TBands remain the same through bull and bear markets. Cycle tops, however, lean to the left in bear or declining markets; and lean to the right in bull or rising markets. The ProfitTrader™ Timing Bands forecast the most probable times for both bull and bear tops to occur.

The Timing Band Chart
1. A cycle bottomed at T1 (Trough 1),

2. moved up to make a cycle top at C1 (Crest 1),

3. tried to exceed that high and failed,

4. then dropped to make a second cycle bottom at T2.

The price chart shows that prices dropped sharply from the cycle high at the previous day (partially covered by the Quote Page) to make new lows for the move in a bearish decline that also took out the previous day's low, which is hidden behind the Quote Window. Prices dropping below the previous cycle bottom, which was made at the cycle low hidden by the Quote Panel, generally occurs in bear markets.

In our analysis to forecast the approximate time periods for the next cycle high following the T1 low, plus the next cycle low, the Timing Bands are plotted from the T1 low. Since the previous day's low was taken out, our expectation is for a bear upmove (left leaning) to the trading cycle high due Tuesday, 9:35 am Chicago time to Tuesday, 9:50 based on the green Timing Band in the subgraph.

The bear tops tend to occur at the far left of the Timing Band, while bull tops tend to occur more towards the far right of the Band.

The starting point for the T1 cycle is shown in the bottom panel by the red cross and the "U" (UP) below it. The "U" indicates that it is forecasting the Timing Bands for a cycle top (Trough T1 to Crest C1) , and also for the next cycle bottom (Trough T1 to Trough T2 ) from the low at "U".

Therefore, from the T1 cycle bottom at "U", two Timing Bands are forecasted and plotted in the subgraph -- the green trough-to-crest Band forecasting the next cycle top, and the red trough-to-trough Band forecasting when the next cycle bottom is due.

Once the C1 cycle top is in place, a forecast can be made for a crest-to-trough bottom, which is a bear crest-to-trough bottom (leaning to the left), which shows as the blue Timing Band due to bottom by 10:55.

The cycle low at T2 actually occurred beyond the blue crest-to-trough Band ending at 11:15, but it did occur in the red trough-to-trough Band.

Timing Bands Combined with the ProfitTrader Oscillator Buy/Sell Signals
Show the Power of Oscillator/Cycle Combinations

Buy/Sell Signals: Trading Guidelines

  • The buy and sell signals do not differentiate between an uptrend or a downtrend, or a trend reversal; nor are they tied to Timing Bands.
  • A buy signal will automatically be generated when the oscillator drops below the buy line and turns up.
  • Buy Setup Bars are identified by the blue dot below the price bar. Entry occurs when prices exceed the high of that price bar.
  • Sell Setup Bars are identified by the magenta dots above the price bar and the entry signals occur when prices drop below the low of the price setup bar.
  • Buy and sell signals should generally be taken in the direction of the trend unless you are anticipating a trend reversal.

The following chart with commentary shows how to combine Timing Bands with buy/sell signals to trade in the direction of trend. The Timing Bands do not show in this chart. When Walter works with these indicators, he has several charts on his screen with different time periods and indicators plotted. The chart becomes too busy if you try to put everything on one chart.

Only the 10DBS oscillator has been plotted. Create charts with the BLine, HAL OB/OS and 5DBS buy/sell signals in your favorite market(s) to familiarize yourself with oscillator/cycle combination trading patterns.

In this chart, which is a cutout of Timing Band chart on the previous page with the 10DBS and buy/sell signals added, there are four buy signals and three sell signals plotted on the chart.

Number 1 is a buy setup bar that was followed by an entry on the following price bar... but, wait a minute. The trading trend as we saw on the Timing Band chart is down; therefore, you would not take that buy signal.

Number 2 identfies a buy setup bar that is a double bottom, and note that the oscillator had a divergence. The price bar was lower, but the oscillator was higher; therefore, this buy signal could be taken with the expectation of exceeding the swing high between 1 and 2 to confirm a swing reversal, and that is what happened. Prices then continued higher up to make the top at C1.


Based on the T1 cycle bottom, prices were expected to rise into a left-leaning bearish cycle top, which they did at C1, and the magenta dot above the sell setup bar is followed by an entry two bars later.

Prices continued down to make a one-half trading cycle bottom, which is normally not traded. However, the oscillator did drop below the buy line and turn up to generate a buy setup bar, which would not be taken because the trading trend is down. Two bars after the price high, the magenta dot shows a sell setup bar. Prices dropped below the low of the sell setup bar at 6 to enter the market, which declined into the trading cycle bottom.

At T2, buy signal #4 occurred when prices rose above the high of the setup bar that had the blue dot below it. Prices then moved higher to a potential cycle top at 7, and at this point you must decide whether you think that is a trading cycle top forming, or whether it is simply a swing high to be followed by a swing low in a continuation of the upmove. That would have to be determined based on a weekly chart, and additional information.

We will assume that our analysis has showed that the market was going to continue higher, which it did, and the market is now generating another sell setup bar for a trading cycle top. That prices could not exceed the previous high at 6 is bearish, and a drop below the low of the sell setup bar would generate a sell signal with the expectation of prices dropping below the T2 cycle bottom at 4.
Because the C1 high was in a Timing Band, it was an easy decision to make the trade, and because the T2 bottom was in a Timing Band, even though it was somewhat lower than the previous cycle bottom at T1, it offered a relatively low dollar risk trade for a trend reversal.

The important thing to remember about the mechanical buy and sell signals for the 10 Double Stoc is that they are 70% accurate in that approximately 7 of 10 entry signals will be followed by a price move to the next cycle turning point.