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Mechanical Buy/Sell Signals

Based on Oscillator and Price patterns the mechanical buy and sell signals are generally 65% to 90% accurate in identifying cycle bottoms and tops. The Buy/Sell Signals are generated in two steps.

1) When the oscillator turns above or below the oscillator Buy/Sell lines, a potential change in market momentum is indicated by a colored Setup bar.

2) When prices exceed the high of the Setup bar, a Buy "Trigger Entry" occurs. When prices drop below the low of the Setup bar, a Sell "Trigger Entry" occurs.

 

The Bressert Double Stochastic Oscillator Mechanical Buy/Sell Signals
When the Double Stoc (not shown) is above the sell line the market is often overbought, and a downturn in the oscillator can be followed by a downside move. When it is below the buy line the market is often oversold, and an upturn in the oscillator can be followed by an upside move. These turning points are most often trading cycle tops and bottoms. Such a turn will frequently indicate a daily, weekly or intraday trading cycle top or bottom. These trading signals average about 70% accuracy across all time frames.

Because the signals are oscillator generated, Buy Signals will be generated in a downtrending market; sell signals in an uptrending market. These signals should be ignored when against the trading trend. You can simply turn the sell signals off in an uptrend; and turn the buy signals off in a downtrend.
The purple sell Setup bar shows market entry with a red dot; the blue buy Setup bar, market entry with a red dot.

 

Bressert BLine Mechanical Buy/Sell Signals
The BLine oscillator turns more slowly than the Double Stoc, and the BLine Buy/Sell signals tend to occur either a bar or more later than the Double Stoc, or on the same price bar. However, the BLine signals are more accurate, averaging 90% confirmation of cycle bottoms and 80% confirmation of cycle tops across all time fames.

Because the signals are oscillator generated, Buy Signals will be generated in a downtrending market; sell signals in an uptrending market. These signals should be ignored when against the trading trend. You can simply turn the sell signals off in an uptrend; and turn the buy signals off in a downtrend.

The green sell Setup bar shows market entry with a red dot, the red buy Setup bar, market entry with a red dot.

 

HAL OB/OS Mechanical Buy/Sell Signals
OB and OS mechanical trading signals are designed to trade when prices are in the HAL OB/OS Bands and follow the same pattern of a setup bar and trigger entry. Accuracy of cycle identification is about the same as the Double Stoc, but these signals will often occur a bar earlier the Double Stoc signals resulting in lower dollar risk.

Because the signals are oscillator generated, Buy Signals will be generated in a downtrending market; sell signals in an uptrending market. These signals should be ignored when against the trading trend. You can simply turn the sell signals off in an uptrend; and turn the buy signals off in a downtrend.

The dark purple sell setup bar shows market entry with a dark purple dot; the dark red buy setup bar, market entry with a dark red Setup dot.

 

Trend Buy/Sell Signals
The Trend Buy/Sell Signals only generate entry signals in the direction of trend. This provides an initial entry signal with a very high probability of being a successful trade, and prevents you from trading against the trend.

The Buy/Sell Signals are generated only in the direction of trend.
The old adage "trade with the trend; if it is up, buy the dips; if it is down, sell the rallies" is now applicable with the Trend Buy/Sell Signals. The trend is set by the EMA Trend Indicator -- the dips are cycle bottoms; the rallies, cycle tops.

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Buy/Sell Signal Plots
The new Buy/Sell Signal Plots options show multiple Buy/Sell Setups on the same price bar to increase the odds of identifying cycle tops and bottoms as they occur.

The combination of Setup Bars/Dots shows you the clusters of B/S Signals that often occur at cycle tops and bottoms. Though a simple modification, they can make a great deal of difference in your trading as you become aware of the multiple Trading Signals that increase the potential for more sizable moves.

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