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More Indicator Tips
Getting More
Signals from Ceequential and Kombo
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 Setups
Completed setups identify strong directional moves that often pause or
retrace before the move continues on to an ultimate price 'exhaustion'
level. They can often be successfully used as a signal to initiate
short term counter-trend trades.
When a
countdown and setup converge - both complete on the same price bar - it
is time to take notice. An interesting example of converging counts and
a sort of double bottom or skewed 'W' pattern is shown on the chart to
the right. Note the 13th count at the bottom of the right leg of the
'W'. |
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 Successive
Setups The chart on the left is an example of successive setups
in the
same direction where the Hi-Lo range of the 2nd setup is larger than
the Hi-Lo range of the 1st setup. In these situations consider keeping
the countdown count from the 1st setup in play.
GRAFster5 lets you choose between always restarting a countdown (a
'recycle') that is in
process when a new
setup is encountered, or continuing the prior countdown. If you decide
to always 'recycle', this setup pattern can still be exploited by
adding the countdown counts from the two successive setups until a 13
count is reached, as in the example. Try this with Kombo too. |
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 More Ceequential
The chart on the right shows an instance where the 13th countdown bar
is reached but the countdown has not been marked as
completed (no red arrow). GRAFster5 uses the Ceequential recipe that
requires the 13th
countdown bar High be >= the 8th countdown bar Close for a
sell signal. Similarly, in the case of a buy countdown, the 13th
countdown bar Low is supposed to be <= the 8th countdown bar
Close. This
requirement and it's variants is sometimes referred to as a 'perfected'
countdown.
You
may choose to ignore these 'qualifiers' and consider a countdown
complete when the 13th countdown bar is reached regardless of its
position with respect to the 8th countdown bar. The rules are not
engraved in stone! In this
case
doing so paid off. |
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 1-2-3 Bottom This
is an example of a classic 1-2-3 Bottom formation. Point #1 marks the
recent Minor Low prior to the lowest Low. Point #3 marks the lowest
Low, which
is confirmed as 'the Low' when price moves thru the recent resistance
level marked
by point #2. This completed pattern is used to signal that a trend
reversal has taken place.
Incidentally, Kombo marked a completed Bottom countdown at the Low -
Point #3 - as well, giving an advance tip that selling is about done.
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Last updated
Sept 16, 2007
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