I want to illustrate a clear down signal in my opinion.
Lets start with one of the few indicators on the screen, as I will cover them all as we progress.
The first indicator is the SMA 10/40. We see an initial downwards cross, just before wave 1 on the cart, where I have drawn out wave one of five.
This was the start of a 5 section bullish leg.
Following through was the expected 3 legged corrective wave. Illustrated with A,B,C.
My signal to enter short, as we continue onto a second major downward leg, is the point in which the 10 SMA crosses below the 40 SMA.
Combined, the Bollinger Bandwidth width indicator, moving up, providing our indicator of increasing trend strength, via volatility.
As the MacD moves down, the increasing Bollingerband width, tells us momentum is picking up into theis downward move.
Lets start with one of the few indicators on the screen, as I will cover them all as we progress.
The first indicator is the SMA 10/40. We see an initial downwards cross, just before wave 1 on the cart, where I have drawn out wave one of five.
This was the start of a 5 section bullish leg.
Following through was the expected 3 legged corrective wave. Illustrated with A,B,C.
My signal to enter short, as we continue onto a second major downward leg, is the point in which the 10 SMA crosses below the 40 SMA.
Combined, the Bollinger Bandwidth width indicator, moving up, providing our indicator of increasing trend strength, via volatility.
As the MacD moves down, the increasing Bollingerband width, tells us momentum is picking up into theis downward move.