Smart Money Alerts
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.
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 first page of
our Daily Trend Change Report.