Regular trading signals

To see more details about our Index trading system extraordinary results click here

Lower band touch buy signal (LT)

As we mentionned it in previous pages, the lower band touch buy regular trading signal is the one we meet the more often. If the market does not fall under a stop condition or in a bear market, this is the buy signal we get when we have the low of the day touching the lower band. The close can be higher or lower than the lower band. However there can be a delay before this buy trading signal can be generated. If the market falls to fast from it's previous cycle high the signal is triggered but will be delayed a few days. It can be delayed even further if the market continues to fall and get into a stop loss condition or into 1.23 or more band offset which means the beginning of a bear market.

Here is a graphic example

This sell regular trading signal is almost always paired with the lower band touch trade signal. If we have a cycle older of 30 days or more (see cycle description) or if the market went high enough before 30 days we have the conditions to trigger a moving average touch trade signal. It is generated the following way one of the described condition occurs. When the close of the day is under the moving average by at least .5% for SP500 and DOW and the momentum indicator is between -.5 and -1 for the Nasdaq 100 depending on the latest volatility of this market. See previous graphic as an exmaple.

Down trend recognition sell signal (BC)

This very particular sell regular trading signal does not occur very often but when it does it means bad news. We have seen it quite often witht the Nasdaq 100 and 4 times for the SP500. Our index trading signal recognizes the beginning of a down trend and generates a sell signal just about the same way as the moving average touch sell signal. Yes the market must be above the moving average to be able to trigger the signal. When this signal occurs we cannot have subsequently a lower band touch buy signal. To reenter the market we must have a band offset of 2 or more, we can also reenter if after the market moves under the lower band but comes back above it. We can also reenter the market if the market fails to touch the lower band but comes very close and then crosses the moving average. This last case can be considered as a trend reversal signal if done very quickly. See how the signal marked as BC operated from july 2001.

Here is a graphic example of SP500 fall 2001