The Right Side - Should You Take Action?

Once you have determined your Market Bias using the Panic Zone chart, short-term traders can continue their analysis using the Right Side Chart. The Right Side Chart is a very simple trading system with a Buy Signal being confirmed on the first close above the upper channel line (1). And a Sell Signal is confirmed on the first close below the lower channel line (2). This Trading System is short-term and aggressive, and can give lots of buying and selling opportunities. We want to filter out as many of these as possible by using our Panic Zone chart.

Right Side Chart 

To prepare you for a possible trend change, this chart is loaded with early warning signals. The first one which is located at the bottom of the chart (3), is a very hyperactive and can quickly fade away if not confirmed. A peak indicates a possible market top, a valley indicates a possible market bottom. Once this indicator has gone off, it can be confirmed by any of the other early warning signals. In this example we are looking for a market top to be confirmed. So the price bars can turn red (4), the channel lines can turn red (5), an Early Warning Signal develops (6), the Market Consensus indicators turn red, (7) and the Diamond indicator can turn red (8). Early Warning Signal changes (6) are reported on the second page of our Daily Trend Change Report.

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