(1)
FOCUS ON CYCLES
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.
(3) ProfitTrader™ MECHANICAL BUY/SELL SIGNALS
Based on Oscillator and Price patterns, the Mechanical Buy and Sell
Signals are approximately 70% accurate in identifying cycle bottoms
and tops.
(4)
TREND
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.
(6)
TIME CYCLES
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.
(7)
PRICE FORECAST / 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™
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.
