Reversal Tracker - COMPLIMENTARY 2 Week Trial Offer

May 28, 2008

Get a demo that will change your trading forever.

A.B.C. Indicators pinpoint entries and exits on any market and timeframe with unbelievable accuracy. A- Short Potential, B- Long Potential, and C- Counter short. This system is 100% automated and easy to learn in one day. To get your complimentary demo today, go here.

The old adage, buy low and sell high, is still the golden rule. The problem with this rule is no one will teach you exactly what is low, what is high, and how to take full advantage of it! Our goal of this article is, to give a brief introduction into, how to go about selecting tops and bottoms in your market of choice. We also want to show you how this can be done with ease and accuracy.

Trading with the longer-term trend at key areas of support or resistance, that your indicators confirm are anticipated to hold, is the first step. Then, fine-tuning precise entries, on a smaller timeframe, provides traders with a surgeon-like ability to draw consistent profits from the market. Those already trading in this fashion, say it is the finest way to buy low and sell high. The best part is that this method can be applied to any market; from stocks, to bonds, to futures, to forex, with as much as 10 times the reward for every dollar risked.

THE HIGH IMPACT TRADE:

First, let's define the high impact trade. We will be using the T-3 Fibs ProTrader software, and its components, to pinpoint trades at "high impact" areas, or strong areas, that have exceptionally elevated odds of winning. This also includes incredibly small risk and the absolute maximum reward. You may use whatever software you have, that predicts tops and bottoms, in advance. These trades will provide the absolute highest amount of reward potential, for minimal risk, enabling traders to realize a very high rate of return.

Looking at the mechanics of the trade, you will need to identify two factors from your higher timeframe first. You must be aware of the expected outcome for the continuation of a trend, in any given direction. (Nexgen teaches this in an online course to traders worldwide) Once you know the direction of the market, and the probable continued direction, you must identify a high impact area. You will want to see the high impact area, during a retracement, in the opposite direction of the overall trend. An example of this is when the trend is down and the market makes a retracement up, you need to know where that retracement has the highest potential of stopping. This is also where we expect the overall trend to continue and where there is the highest amount of reward for the least amount of risk.

This high impact area can be any of the following:

FIBONACCI SUPPORT and RESISTANCE - These are very powerful clusters of Fibonacci ratios that fall into a tight range. They are the road map for our general trading. These key areas will be extremely reliable for determining potential reversal points in the market. The T-3 Software automatically plots the Fibonacci areas, as easy to read, red or blue lines on your chart. This is presented in a fully dynamic program. If you do not have automated Fibonacci lines, then you can produce them manually, or use some other type of support and resistance levels that can predict turning points.

MOVING AVERAGES OR TRIGGER LINES - Any key pullback into a trigger line can cause a significant bounce. This bounce is especially noted on higher timeframes and must be considered as an entry or an exit area.

Once a high impact area and direction has been established on the higher timeframe, use the high impact area, on a smaller timeframe to refine the entry. Typically you will notice a Fibonacci area at outer bands or mid band. This will initiate what, seems to be an aggressive trade against the trend of the smaller chart. In fact, this area has the highest potential to establish a turning point for the larger trend retracement to end.

THE ENTRY FOR THIS TRADE IS PRECISE - If looking for the short trade (see example below), the market must HIT the higher timeframe areas that you anticipate to hold. Then, the market must also reach the area on the smaller timeframe chart. You will enter as the market QUITS making new highs and puts in a HIGH that closes LOWER than the bar prior. (A lower high). If the close of that bar is deep inside the small triggers, or just below, it is time for entry. The best entry available is the way to go. The stop will be just past last high or just past small triggers initially. Usually, on the ER2, that is no more than .6 or .8 ticks and 1.75, on the S&P minis.

If you cannot view the example chart, go here.

John Novak is President of Nexgen Software Services Inc. John is the developer of the T-3 Fibs ProTrader indicator package. He has been involved in the marketing and distribution of Technical analysis software for the last 13 years. He has devoted the last 10 years to the automation of a popular discretionary methodology that he taught in seminars for over 2 years to many successful traders that was centered on Fibonacci analysis of both time and price. With the help of his software programmers they have automated this entire Fibonacci process into a fully automatic program. He spends his days working on constant improvements in his analysis in predictive indicators for traders and spends the day trading his own methods.

Get a demo that will change your trading forever.

A.B.C. Indicators pinpoint entries and exits on any market and timeframe with unbelievable accuracy. A- Short Potential, B- Long Potential, and C- Counter short. This system is 100% automated and easy to learn in one day. To get your complimentary demo today, go here.