How to use these
DON'T CONFUSE FREE WITH LOW QUALITY!
These daily signals are designed to showcase how effective
our SDA system is, using daily charts as an example. Daily
charts yield less signals than trading the SDA on a lower
timeframe. If you want more action, consider joining our
Live Trading Room.
Example 1, 1000
the above example we see that a bar closed below the ARB
Bands. We place a sell stop (pending order to sell) below
this bar and a protective stop above this bar. See the detail
box on the left of the picture that shows a close up of
the bar closing below the band.
Example 2, How it
Looking at the example above it should
be first noted that we are in a pattern that has followed
a 700 pip up move.
Looking at the bar nearest to 'A',
we see that the market tried for a new low but found buying
pressure to the upside. Even though the bar poked out of
the bottom of the band, it did not close below it. No Trade.
In example 'B' we see that the bar did
close below the band and also closed below the lower third
of the total bar size (high to low). This is a clear strong
momentum bar and we place our sell order below the bar with
a stop above. This resulted in a 1000 pip move.
Looking at bar 'C' we see that the bar
closed just on the line. This is a questionable bar because,
1. we are following a large up move. 2. The close is only
just above the top third of the bar length and 3. It's an
inside bar of the previous day. We would be wise to wait
and see on this one.
In bar 'D' we see that it clearly closed
above the band and the bar close was near the top third
again. Also we are near the high of 7 bars back. If we had
placed a buy order above bar 'D' it would not have been
triggered anyway, as the market collapsed the next day.
1,2,3 Reversal. It should be noted that
a classic 1,2,3 reversal pattern formed here also. The highest
bar in the picture (4 from left) is the high or the '1'.
The low at 'A' is the '2' and the high at 'D' is the '3'
of the pattern. 1,2,3 works by first forming a new high
(1), then forming a low (2), then it tries to form a new
high but fails (3). Some traders trade this pattern by selling
at the low formed by '2' or at the low of bar 'A' in the
No current Signals.
The market is in
a consolidation stage right now after dropping so far in
the last few weeks. We will be cautious for now and wait
for good signals. There have a been a few possible short
signals but combined with opposing bottom formations. Lets
If you like more
daily action, join us in the live
trading room where I trade this same system on a lower
timeframe and usually get trades every day. You'll also
get access to my training webinars and the custom coded
bands and supporting indicators. More Information Here