The Stab Buy / Sell Model is when the market price is more than 1.5 deviations from the 15 period moving average.
The higher the deviation, the better the opportunity to come back to the Keltner Bands.
Our work has shown a super high, if not 100% of the time, the market will return to the upper Keltner Bands if Stab Sell and lower Keltner bands if a Stab Buy.
Note: The upper and lower bands will move on each new bar, and the original market price objective will change on each bar, but it will does get to these levels.
It is just when and where?
Period = This is the moving average length to be used. We default this to 15.
Starting Point = This is the deviation starting point. We default 1.5, but you can change this to any level you want to start to see on Market Pulse.
Threshold(s) = These are the color changes of how far the market moves away from the moving average length.
We look for the market to go 1.5 plus deviations above the 15 period moving averages. It better to see more than 2.00 to 2.50 deviations. At these levels, you can see how far the market is to the upper bands. This is what the market price is expected to reach.
Note: If the bands are at a 45 + degree upturn, it is best to hold off on selling the market.
You can also use these levels as long exits.
The values you see in the display are the deviation values. For example, if you see -2.45, this would represent the market is at a 2.45 deviation above the upper bands.
Note: It is all vice versa for Stab Buys
Cycle Trader Pro is a complete trading software company that has created many custom indicators that show momentum and cycle reversals better than most others. We build custom auto order entry and exit applications, and auto trade system strategies.
The overall purpose of the Cycle Trader has been to continue to create trading indicators to show market momentum & reversals better than most other indicators. To create trading models to help traders understand what pattern the market may be in at the time to help them make the best choice in direction at the time.
We have designed trading apps to help traders save money entering and exiting positions. The goal was to make the trading apps automatically handle orders after entry. This way, you our traders could concentrate more on the direction of the markets than placing orders all the time. Then we added value for each trade from start to finish displaying personal trade data. The trade data with the CycleTraderPro apps is data one would not expect from others apps.
We run all the indicators, charts, Go Fish Pro and the Auto Entry on NinjaTrader
We offer just the indicators on MetaStock, TradeStation, MetaTrader and MultiCharts
Futures, Options on Futures and Forex trading involves a substantial degree of risk of loss and is not suitable for all individuals. An investor could lose the entire investment or, in some cases, more than the initial investment. Past performance is not necessarily indicative of future results.