T-170
GET
Applying Technical Analysis
SUGGESTED SETTINGS FOR THE JOSEPH TREND INDEX (JTI)
TREND LENGTH = NORMAL
FAST = OFF
BAND 1 = +30 BAND 2 = -30
The following is the July 1993 Soybeans. Around the 605 level, the JTI indicated a well defined Up Trend in progress. At 620, the color turned RED indicating a strong Trend in the July Soybeans.
CASE A : The trader can use the above JTI analysis along with other techniques to enter long positions.
CASE B: The JTI provides a mathematical model that classifies Trend Strength. In this case, the Trend is being classified as a Strong Trend Up and should prevent the trader from initiating short positions.
July 93 Soybeans.
Joseph Trend Index alerts the user to the
breakout and then confirms the strong
Trend Up by changing the color to RED.
T-171
GET
Applying Technical Analysis
HOW CAN JTI BE USED:
1) The JTI can be used as an early warning signal to identify the beginning stages of a Major Trend.
2) The JTI can be used as an early warning signal to identify the end of a Major Trend.
3) The JTI can also be used as a non biased and objective tool for adding positions on interim pullbacks during a confirmed strong Trend.
4) The JTI provides a mathematical model that classifies Trend Strength, and keeps one from initiating trades against a strong Trend while the strong Trend is still in progress.
STRONG UP
TREND
é
Add Positions During
Strong Up Trend
é
Add Positions During
Strong Up Trend
RED Color
ñ
ê
Trend Index > (+30 to +50)
(+30 to +50)
Since the JTI is a new study and slightly non-conventional due to
its two dimensional display (direction and strength), some users may find it hard to grasp the concept. The only way to overcome
this is to work with historical data over and over until you become
familar with the JTI study.
T-172
GET
Applying Technical Analysis
CYCLES
This is a new study we have added to the Advanced GET software. The default is set to use 200 bars for calculating the cycle and we recommend leaving it at 200.
When you first add the Cycle study, the software calculates the underlying cycle on every new tick. Once you determine there is a match between the cycle and the price swings, you can save the current cycle as a default.
Currently, you are required to determine if the cycle is matching with the price swing.
We plan to add this as an automated feature at a later time. Please read below on how to determine a match.
MATCHING:
Look at the last few pivots on the price chart. The price swings should match the Cycle study. Look at the example below. If there is no match, then let the calculation continue till you see a match.
In this example, the current price swings
(only concerned with the last two or three
swings) is matching the Cycle pattern.
Here you would save the Cycle as default
and use the Cycle projection.
Current Prices
Use Cycle Projection to è
determine future swings.
ì
ë
Swing
A
Swing
B
ì
Cycle Projection è
CYC A
ë
CYC B
T-173
GET
Applying Technical Analysis
Once Match is Found:
Step #1 Once you find a match as shown on the previous page, right click the Cycle Study to open the Cycles menu. Now save the Cycle as default. It is very important that you save the Cycle as default. Otherwise, the software will continue to re-calculate the Cycle on every new bar.
Step #2 Once you have saved the Cycle, then turn the display to default. This will display the default Cycle. Click Okay.
Leave at 200
ì
bars.
Step #2
ì
Step #1
Cycles-Default indicates a
saved default Cycle.
Price pattern follows
projected Cycle Pattern.
T-174
GET
Applying Technical Analysis
When do you re-calculate the Cycle?
Once you have a match, use the default Cycle till the price swings and the projected Cycle pattern goes in different directions. When the Cycle projections fail to be IN
SYNC it is time to re-calculate. We are looking into ways to automate this. Currently you have to make the determination.
How to re-calculate?
Right Click the Cycle study to open the Cycles menu. Click the Current button in the display section and select OKAY. This will prompt the software to re-calculate the cycle on every new bar.
ì
Re-calculate
the Cycle.
Again, continue to monitor the Cycle Pattern and price swings for a match. Once a match is found, immediately save the Cycle as Default and follow instructions on the previous page under “Once a match is found”.
More information can be found in 1998 Seminar Videos due to be released in early February 1999.
T-175
GET
Applying Technical Analysis
TRADE PROFILE
This is a new study we have added. The software scans the data and finds levels where the market started significant buy or sell swings in the past. These levels are categorized based on the amount of volume involved and the actual price movement. For Stocks, actual volume is used and for Futures the tick volume is used.
Once these levels are identified, the trader can monitor price reaction when these levels are tested again.
BLUE
Blue Indicates previous Buy
ö
ï
Thickness indicates
Levels
volume involved
RED
ï Red Indicates previous Sell
Levels
Length indicates size of move
As a trader, you should focus on the levels that are thick (high volume) and or long (large price move). When prices trade to a previous Sell level, you would look for selling to continue. Likewise, when prices are near a previous Buy Level, you would look for buying to continue. This is one of the patterns provided by the Trade Profile.
Previous Sell level pro-
RED SELL
vided Resistance and the
ï
ð LEVEL
selling continued.
Thin bars can
be ignored.
SP March
5 min
ï
ð
Blue BUY
Previous Buy level pro-
LEVEL
vided support and the
buying continued.
Thin bars can
be ignored.
T-176
GET
Applying Technical Analysis
The Trade Profile study can be used on daily charts or any time frame. The study works well on Stocks also. See chart of Ford Motors below.
US BONDS
Previous Sell level pro-
Daily
vided Resistance and the
RED SELL
selling continued.
LEVEL
ï
ð
Blue BUY ð
LEVEL
FORD
Daily
Selling
FAILED.
Selling
See next page
ø
continued
RED SELL
ø
LEVEL
ï
ð
Previous Buy level
Blue BUY
provided support
LEVEL
and the buying continued. ï
ð
T-177
GET
Applying Technical Analysis
When prices trade to a previous Sell Level, the normal pattern is continued selling like in CASE A.
Roughly 40% of the time, CASE B pattern can be seen. Here, the previous Sell Level failed to hold the rally. Either the previous shorts are no longer selling, or more buying is coming in. Either way, the SELL LEVEL fails to hold the rally.
Another theory is that traders who were short at this SELL LEVEL may be stopped out of their short position. This could further fuel the rally. Bottom Line: If the prices fail to hold at previous Sell Levels, then the previous Sell Level could become support and create a base for further rallies.
Likewise, if prices fail to hold at Previous Buy Levels, then the previous Buy level could become resistance and create a base for further declines.
FORD
Daily
CASE B
Selling
CASE A
FAILED.
Selling
ø
continued
RED SELL
LEVEL
ø
ï
ð
Blue BUY
LEVEL
T-178
GET
Technical Analysis Index
Applying Technical Analysis Index
Symbols
D
*
T-151
decline
T-21
1 – 3 % OPTION
T-89
Default
T-86
2nd Attempt
T-22
Defining Price Swings
T-93
2nd attempt
T-21, T-23
direction
T-172
38% level
T-44
Displaced Moving Average
T-54, T-56, T-57, T-58, T-
59, T-60, T-61, T-45, T-48
A
Divergence
T-58, T-59, T-61, T-62, T-71, T-72, T-
Acceleration
T-147
73, T-109, T-45, T-48
Aggressive
T-51, T-87, T-88
DMA
T-54, T-56, T-57, T-58, T-59, T-60, T-61, T-
algorithm
T-22
63, T-79, T-25, T-45, T-48, T-49
ALTERNATE 1
T-87, T-88
DMI
T-167
Alternate 1
T-87
DOUBLE TOP
T-51, T-52, T-22
ALTERNATE 2
T-86
Double Top
T-53, T-54, T-55, T-56, T-75
ALTERNATE 3
T-85
Double top
T-51, T-50
Alternate 3
T-86
Down Trend
T-134, T-167
Alternate counts
T-88
Drawing Tools
T-88
Alternate Elliott Wave Count
T-84
Drugs
T-104
Alternation Rule
T-31
E
Auto Channels
T-130, T-141
Auto Trend Channels
T-131
Elliott
T-5, T-10, T-11, T-57, T-58, T-109, T-26, T-
33, T-42, T-43, T-47, T-48
B
Elliott Extension
T-119
Bands
T-20
Elliott Channels
T-36
Base
T-120, T-121
Elliott Oscillator
T-5, T-10, T-11, T-57, T-58, T-59, T-
Base Point
T-120. See also Base
60, T-61, T-62, T-64, T-71, T-72, T-73, T-77, T-
Bias
T-157
79, T-80, T-109, T-131, T-12, T-15, T-16, T-
Bias Reversal
T-156, T-157
151, T-158, T-159, T-17, T-18, T-19, T-44, T-
BLUE
T-168
45, T-47, T-48, T-49
Bollinger Bands
T-105
Elliott Triangle
T-30
Brain
T-104