ttTSx indicator components - TSx.els will install as the following
| ttTSxC | indicator |
| ttTSx | indicator |
| ttTSx2 | indicator |
| ttTSxF | indicator |
| ttTSxF2 | indicator |
| ttTSxT | paint bar |
| ttMSxT | paint bar |
| ttCMx | paint bar |
| ttCMx2 | paint bar |
ttTSxC
ttTSx
ttTSxF
ttTSxF2
ttTSxT
ttTSx trade trigger
setup-trigger components
the trade entry trigger has 3 components: (1) TSxC channel break (2) TSx channel cross (3) TSxF swing direction. the text book sell will be TSxF red dots with a price cross of the TSxC red channel line AND a TSx TSM line cross of TSL ~ the text book buy will be TSxF green dots with a price cross of the TSxC green channel line AND a TSx TSM line cross of TSH.
the trade add trigger has 2 components: (1) break from congestion (2) another TSM line cross of TSH / TSL.
NOTE the charts above: ttTSxF alone triggered a trade ~ BUT also needing a TSL/TSH cross to take the trade filtered out congestion trades. ttTSxF green AND TSM crossed TSH ~ BUT ttTSxC never broke after that condition was in place AND filtered out a reversal whipsaw.
Trade Filtering
the combination of the TSx group triggers is an attempt to filter out 2 types of trades: (1) trades in congestion (2) reversal trades that whipsaw then resume the prior direction.
Additional Trade Filtering TSxF2
trade entry trigger component 4: (4) TSxF2 trading trend ~ trading triggers will be basis the direction indicated by a longer trading trend instead of by a shorter swing direction. i have included this as a second indicator layout INSTEAD of the only layout ~ TSxF will be retained as a separate indicator. the TSxF swing direction has an user input parameter that can increase/decrease its sensitivity AND some may want to trade using this alone.
USH03
the dark cyan paint bars are from a simple study i use to show specific session times - in this case its the overnight session. IF you would want that study i placed it for download on our TradeStation webpage.
A/B: the bond trading trend goes into buy during the overnight session AND then the channel break A is with a news release ~ i would prefer to allow the first reaction to hit AND then enter the 2nd time through ~ still at the channel break as a breakpoint to the reaction high.
C: NOTE the congestion during this time period ~ what i would call congestion in an upswing. we see the congestion from the blue congestion dots ~ again with the red swing dots without TSM ever crossing TSL AND then the trading direction even turns red. BUT there is never a sell triggered for 2 specific reasons: (1) while the trading direction is red ~ TSM never crosses TSL. (2) while the trading direction is red ~ TSxC is never broken.
D/E: the upswing resumes as the trading direction turns green again AND the swing dots turn green again. D is the first congestion TSxC break AND considering this is a continuation move i have no problem NOT waiting for E which is where TSM crosses TSH.
YMH03
TSM has crossed TSL AND the swing direction dots are red [this is a good exit signal for a long OR aggressive traders NOT trading only in the direction of the trading trend would reverse here] ~ the YM goes short as the trading trend direction shifts from buy to sell WITH price breaking the TSxC.
A: while in the sell there is a retracement to TSxC resistance AND on this move the swing direction remains red dots BUT also picks up blue congestion dots ~ TSxC holds AND the move resumes as the congestion dots disappear. this is what i call a resistance reject AND a good place to add to OR re-enter a short basis the current move. since this is an add-on/re-entry to a given move ~ i am not concerned about waiting for an additional TSM-TSL cross OR channel cross BUT this will be one of those situations that you will want to use some discretion. for instance: is this a breakout of congestion which was a pause in a move with good slope [which i feel this was] -VS- a breakout of congestion from a flat drawn out move ~ the better the slope of the move the better i feel about getting back in OR adding on.
B: the short will have been exited on trail AND the swing direction dots turned green AND TSxC also had a small break BUT basis the trading trend direction there was no buy. the short can be re-entered as the swing direction dots turn red again with a tight hold at TSxC ~ BUT do compare the slope to the prior move down. this is certainly a contrast AND one that i want to be cautious about ~ especially in the event that the current swing down regardless of how good of a trade was also counter to the day's bigger move. i would not want to make an add-on to the short here after another swing congestion dot change from green to red.
ESH03
NOTE the transition from trading direction green to red = buy to sell AND then how that keeps you from taking 2 counter swing buys. this also syncs with the day's move which is a negative net change AND although we still take counter trades basis our trading method[s] ~ we especially are most concerned with the bigger move indicated.
A/B: instead of a counter swing buy ~ this is where the sell resumes as the swing direction dots turn back red. the first entry A has not broken the channel again BUT as it is a resumption of a move instead of a reversal AND this is a down day ~ i am fine with this as a breakpoint entry into the prior swing low. the second entry A is the actual channel break. B again shows a counter swing buy which is NOT indicated basis the trading trend AND then resumes the sell as the swing direction dots turn back red ~ this is also done as part of the channel break.
charts with TSxT paint bar ~ added 2/15/2003
sometimes what we see in the markets is 2-way swing movement where the market can move in each direction around the same distance ~ it is this kind of market that shows up as good diagonal slope on the charts AND allows for trading using the swing direction AND in the wider range days be able to then use the trend direction as another trade.
S1 = swing direction < 0 AND price x channel S2 = trend direction < 0 AND price x channel S3 = swing direction - trend direction < 0 AND congestion break - price x channel
B1 = swing direction > 0 AND price x channel B2 = trend direction > 0 AND price x channel B3 = swing direction - trend direction > 0 AND congestion break - price x channel
in contrast we may get a strong underlying trend AND instead of then getting a retracement giving a move of approximately the same size as the prior move AND in the same amount of time ~ we instead get pauses AND congestions. we may have gone down 15 points in 30 minutes AND then we retrace 5 points in the next 30 minutes. it's these moves where i would only want to trade in the trend direction AND use the swing direction reversals in that direction for entries - add-ons.
A: example of an extended move into congestion ~ you see it on the chart when comparing the slope of the moves ~ diagonal -VS- horizontal. you quit getting series of lower highs - lower lows AND instead get bars which have no pattern with virtually all the bars having some common price points.
we did not get a trigger here because the channel didn't break while the swing direction was green BUT it was clearly very close to doing so ~ it's these congestion counter moves that i don't want to typically reverse on against the trend direction.
B: when i compare B to A the setup looks different to me ~ both in terms of clarity AND in the amount of time it took to setup. i see a rounding of TSL-TSH with a TTM cross into the channel test - then there is a higher low holding the 'center' of the channel with TSL-TSH continuing to slope up. swing direction turns green AND the channel breaks ~ again i think this looks different then what A looked like at the same point in the setup.
A: regardless of whether you are trading the swing direction independent of the trend direction ~ this is NOT a buy because there is no TSM - TSH cross.
B: B3 congestion break BUT this does NOT look like the tight continuation AND swing high/low break like the US chart OR the NQ chart above ~ i would watch 'look' that for a fake out lower high AND break back down.
C/D: C is NOT a sell because there is no TSM - TSL break. at D there is a TSM - TSL break BUT not only is this extended congestion ~ note how the slope as seen by the regression line is still rising ~ i would NOT want to take a swing direction trade counter to the trend direction in this case.
charts with TSxT2 indicator - MSxT paint bar ~ added 3/8/2003
TSx2 indicator: will show yellow dots on the TSx channel when a price extreme is reached
MSxT paint bar: green/red = swing direction - channel break OR trend direction shift ~ yellow = bar after price extreme has moved out of the indicator extreme condition.
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