2004/01/05

Please feel free to suggest changes. Thanks Bill for your help.

The recommended way to learn a setup:

The following are the setups on time frame noted.
It is assumed you are familiar with them.

If not go to Buffy's Class on MOFs and Slingshots.
Many other examples of specific setups are at http://www.dacharts.org/archives/2Xbline/

Over/Under is a fancy name for Stochastic Divergence. It is an AGAINST the trend trade.
While some are finding this easier than MOF and Slings, I recommended mastering the with the trend MOF and Slings first.

Feel free to stop by the BLine Echat room and ask questions.

January 5, 2004 File Name: 20040105 Times are CST

We will still use the 532T chart but I have put the MTF (Multi Time Frame)
template on today which shows the indicators on the 1064T in windows 2 and
3. This day is one where it really pays off and removes the confusion on
the 532T chart.

Ribbons in Sell Zone
Clear MOF down on the 2nd indicator window which is dbl the time frame of the chart the template is applied to. Conversely, the 266T is showing a MOF up as a possibility. This is common when market is going sideways. It is when I say in the room the 990T ribbons in Sell/Buy Zone and the 266T is the exact opposite.

Using multi TFs helps a lot here as it is much clearer what is going on the 1064T 2x and BLine.
Depending on your style of trading, this may be a DBL entry or after the LH, you will watch expecting a triangle or range.

Note the 1064T indicator windows have spread on the 2x LT Stoch and distance between ST and LT Stoch.

By waiting for weakness in the MACD histogram or 1064T ST Ribbon, you can avoid entering early.
The reversal of the 2X LT Stoch prior to this setup, is just noise as far as 1064T is concerned. The 532T does show spread between ST and LT Stoch that says to check lower TF for short entry. There you see the 266T is showing a
MOF down with the first Sell Signal on a falling BLine. This ends with 2X ST Stoch divergence exit. Study this trade to learn how the time frames work together.

Between trades 5 and 6, the Ribbons are lost on the 1064T chart while the Ribbons on the 266T show a series of Slings. This is why we can use the Slingshots and Slings when the BLine is decked and/or Ribbons are lost on a higher time frame, to add to our position or if we missed the entry before, to enter a trade.

The Template for the multi time frame is available, as well as the chart for today's PB.

Last updated 1/8/04 5pm