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