System
Principles
The system generates red and green triangles which indicate the start of a potential move in the market.
The red and green triangles appear on completion of a bar.
Each bar is formed after a certain number of trades have been completed. The advantage of this can be seen by looking at time scale at the bottom of the charts. It will be noticed that the hour markers vary in length. The more active the market the more bars are created, fewer trades result in fewer bars.
Once the triangle has appeared the signal is assessed as to the likely outcome of the move.
This assessment is based on certain tools available to the user, namely the NSD and Volume, both of which can be selected from the tools buttons below the chart.For a full explanation of the 5D Trading Strategy please refer to the strategy flowcharts.
There are a number of other tools available to aid the decision making.
DPT ( Daily Profit Target) - the DPT is accessed from the tools menu and projects 3 levels, not all of which will necessarily be seen at once. These levels are potential turning points of the market and may be used as a guide, at which point, profits could be taken. The DPT should be projected from the low of the day prior to a signal for targets to the upside, and from the high of the day for targets to the downside.
DTL (Daily Trend Line) - the DTL can be projected from the same place as the DPT. It shows three trendlines at varying angles. These lines can offer support to a trend. If all three lines are broken project the DTL from the opposite extreme of the day.
