JFC Real Time Target Indicator
Chart 58 - A
First, note that the Directional Day Filter Indicator is predicting a sideways day with activity on both sides of the horizontal blue line and the close of the Signal Bar directly on the Directional Day Filter.
With the way now clear to trade both sides of the market we will use the sell signal as defined by the Cluster Indicator (marked at 9:25 am) to give us our first short entry.
We will now look to the Entry Point Indicator to define our exact entry point, placing our sell stop at the level defined by the indicator at 10460 as marked above. Note that the entry point in this case was defined by two successive support points as designated by the red dots below the price bars. A short red line has been drawn to the right to show the entry point as the market breaks support.
The market trades down through our stop, automatically entering us into a new short position at the 10460 price level.
The market then slowly but surely drifts down to our target level where the trade is liquidated in the 10385 area. The trade has yielded $750.00 before commissions and slippage.
It is also worth noting here that a Cluster
buy signal also occurs at the exact bar on which the downside target
Since we have earlier defined the major trend of the day as sideways, and considering that our downside objective has been reached, we can be confortable in taking action on the buy signal issued by the Cluster indicator.
Again, we look to the Entry Point Indicator for a valid entry point for our long trade. Overhead resistance is defined at 10424 which is marked by the short cyan line extending to the right of the blue dot placed by the indicator.
This combination gives a good entry point for a late day trade with
the potential for several points.