Commodity
Futures Trading
MARKET
REACTIVITY SYSTEM
But recognizing that the markets exhibit a cyclic behavior of an average length does not give adequate information for making a trade, Al developed the Market Reactivity Indicator to show you the optimal timing of your trade at cycle turning points; thus providing a powerful trading tool.
It is also clear that in a strongly trending market where the cycle top or bottom may be just a pause in the price movement, you do not want to exit a trade. This is where the additional factor of incorporating measures of price range and trading volume plays a key role in keeping you on the right side of the market.
The chart
below is a chart page from TRADESTATION showing trades in the March wheat
contract as provided by the MARKET REACTIVITY SYSTEM. Using the cycles
and indicators shown, inconjunction with the rules in Al's books made for
these very profitable trades.
What Al perfected is a strategy
linking inherent cyclic tendencies, current price action, volatility and
volume; a strategy that can identify short-term turning points as they
occur. Trading with these indicators can be thought of as a two-stage
process. First, identifying the natural rhythm pulsing through a
market; a rhythm not immediately visible looking at the price chart.
But once uncovered, it lays out a framework of 'heightened predictability'
that can be astounding. Then, with this framework in place, the Market
Reactivity Indicator shows the timing of the trade. It provides
for both market entry and exit.
PROFITABILITY