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PRICE FORECASTS / SUPPORT AND RESISTANCE

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™ KELTNER BANDS
The ProfitTrader™ Keltner Bands will often provide support/resistance at cycle bottoms and tops.

The red dots show the cycle tops and bottoms that occurred at the Keltner Bands, as at the centerline. Combined with the oscillators and mechanical buy/sell signals the Keltner Bands can add another level of confidence to trade at a cycle bottom or top.

When the oscillators are overbought/oversold and the markets reach the extremes indicated by a Keltner Band, a trading signal in the opposite direction will frequently confirm a cycle top or bottom.

ProfitTrader™ DETRENDS
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 will show a history of the cycles, and also show the cycle in real time, in which many of the cycle tops and bottoms will also occur with the highs and lows of the 10DoubleStoc oscillator.

Centered Detrend

The cycle highs occur at the UP protrusion above the zero line; and the cycle lows occur at the down protrusion below the zero line. Note that the Centered Detrend does not show real time tops and bottoms due to the use of a centered moving average the same length as the expected cycle (most often 20 price bars) that is the ½ cycle behind.


Combining Detrends and Oscillators
Combining the Centered Detrend and the Detrend RT with the 10DoubleStoc oscillator will show the current cycles in real-time.
   

The blue vertical lines plotted from cycle bottoms, and red vertical lines plotted from cycle tops show how the 10DBS and detrends occur at the cycle tops and bottoms.


Detrend RT

The Detrend RT uses a regular moving average one-half the length of the expected cycles, and does show cycle tops and bottoms real time.

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