Better Indicators Q & A Relative to my Trading
- How do you differentiate between turning point overshoots and real trend breaks?
- I look for 2 things. First, I check to see if the market is close to a turning point in the higher time frames. If so, the chances are greater that this is just an overshoot. Second, I look for confirmation from my volume pattern indicators. For example, volume momentum divergence patterns and Professional bars are usually a sign that the market is about to change direction.
- When are the bullish (red) and bearish (white) divergence signals plotted?
- The divergence signals are plotted when the momentum line approaches the zero line. This means that the signals can be plotted retrospectively. The delay is not usually an issue since the divergence signals precede market turning points. On fast charts such as a 500 tick bar chart the delay is inconsequential. With longer day trading time frames, such as 4,500 tick bar charts, the signal can be anticipated and when it arrives is usually confirmation.
- How do you know whether Professionals are buying or selling?
- The easiest way to answer this is with a video. Around the 6 minute mark I explain how I interpret Professional and Amateur activity and whether it is buying or selling. Go see the Professional buying or selling video here...
What do you recommend for entry after a breakout from consolidation?As the market breaks I enter a trade "at market" – real breakouts will move fast and without a pullback. I anticipate the direction of the breakout by looking at 3 things. First, the breakout is usually in the direction of the trend that preceded the consolidation. Second, I check the trend direction of the next higher time frame. Third, I look for confirmation from my volume pattern indicators
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- Can I edit the indicator code?
No. The code is protected and not able to be edited. However, Functions are included in the downloads so you can program your own systems or indicators using the indicator outputs. Currently, the Better TRIN code is unlocked and able to be edited or translated for another trading platform. But this is likely to change once the next version of Better TRIN is released.
