The POWER
of the system comes from the development of an indicator that can be tuned
to track each cycle. In Al's books,
he presents an effective means for determining the important cycle lengths
that can be used in the markets you wish to trade. This technique,
which utilizes a mathematical filtering technique to separate cycles of
different lengths, is built into the software developed for the 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.
"I'm
extremely
impressed with your research and conclusions; books and programs....!"
Phil Barney, Trader
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