CHANNEL SURFER 3-WAVE 30-MIN BUY-SELL STOCH-DONCHIAN INDICATOR

26 de jan. de 2014

Donations Accepted: 12sEPDs25Wt1Th8tduQMDhJiWWkX5CC58u


Elliot Waves states that 3-Wave corrective waves are always contrary to true market direction.


VOLUME:
Self-Explainatory
Never Trade on "Low Volume"
However, Rallies have been known to start based on momentum only with low volume.


NOTE:

BUY SIGNAL (Blue Bottom Donchiain Channels - 1st Chart)
Price is "oversold via candles having bottomed and stepped-down 3-steps / Waves
[If Not 3-Steps then wick will touch bottom blue channel two to three times]
Place your limit order to buy at your exchange based upon the 3rd Step / Wave average numerical value of the steps


CONFIRM (Stoch RSI - 3rd Chart)
Green rise above Red


SELL SIGNAL (Stoch RSI - 3rd Chart)
Green cross below Red


DONCHIAN CHANNEL FUNCTION:
Donchian Channels function in a reaction to an action
If Price Tops Stepping-Up Top Blue Donchian Channel = Price Is OVERBROUGHT = Impending PRICE DROP
If Price Drops Stepping-Down Bottom Blue Donchian Channel = Price Is OVERSOLD = Impending PRICE RISE


REFERENCE (Chaikin Money Flow - 3rd Chart - Yellow Line) :
For reference only, no buy or sell signal is actually taken from it, all it does is reflect the current True Market Trend:
When divergence from price is noticed on the Stoch RSI, this Chaikin Money Flow indicator can be used to verify True Market Trend Direction, can be cross referenced and verified via comparing to the Aroon (4th Chart) indicator, if both agree, then the market is in divergence to the Stoch RSI.


REFERENCE (AROON - 4th Bottom Chart) :
For reference only, no buy or sell signal is actually taken from it, all it does is reflect the current True Market Trend:
When divergence from price is noticed on the Stoch RSI, this Aroon indicator can be used to verify True Market Trend Direction, can be cross referenced and verified via comparing to the Chaikin Money Flow indicator (Yellow Line-3rd Chart) , if both agree, then the market is in divergence to the Stoch RSI.

GREEN @ 100% = Upward Bull Trend
RED @ 100% = Downward Bear Trend
GREEN and RED Both below 50% = Sideways Consolidation Trend Beginning
GREEN and RED Both 0% = Sideways Consolidation Trend


NOTE:

Shown For Use With a 30-Minute TimeFrame
A Trade may take 4 to 5 Hours
Make Sure To set your Stop Loss
Before Entering Your Trade To Minimize
Any Loss Should The Market Go Against Your Trade.
A Stop Loss of 5 points below your Entry should be fine


BONUS:

robertprechter.com/

elliottwave.com/info/

Short Version (Crash Course - 4 Hour Read): elliottwave.net/educational/basictenets.htm
Short Long Version - elliottwave.com/tutorial/
Long Version (By The FirePlace Read) - issuu.com/elliottwave/docs/ewp2008-no-cover-unsecure

Prechter graduated from Yale University in 1971 with a degree in psychology. He served as the 21st president of the Market Technicians Association, and is a member of the Shakespeare Oxford Society and the Triple Nine Society. For more information, visit robertprechter.com.
Awards

Prechter won the U.S. Trading Championship in 1984 with a then-record 444% return in four months in a monitored, real-money options trading account. His publication, The Elliott Wave Theorist, won numerous speaking, timing and publishing awards during the 1980s, and in 1989, he was named “Guru of the Decade” by the Financial News Network (now CNBC). In 1999, Prechter received the Canadian Society of Technical Analysts’ inaugural A.J. Frost Memorial Award for Outstanding Contribution to the Development of Technical Analysis. In 2003, Traders Library granted him its Hall of Fame award.


Happy Surfing / Trading,
Channel Surfer
Donations Accepted: 12sEPDs25Wt1Th8tduQMDhJiWWkX5CC58u