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JFC Market Direction Indicator
Chart 6 - A
While discussing the above chart on the video presentation I pointed out multiple points at which our various buy and sell signals as generated by the JFC Indicator Package would be located. I have added the JFC Reversal Indicator to Chart 6 to illustrate the activity of this tool with respect to the price chart used in this example. Using the JFC Reversal Indicator in combination with the JFC Entry Point Indicator and the JFC Market Direction Indicator I have designated 6 actual trading oportunities which were created here.
Sell point S1 was initiated by the JFC Reversal opeing a sell window when it stopped plotting at 9:32. AT 9:44 we were able to establish a location for our sell stop by utilizing the support point as designated by the JFC Entry Point Indicator at 121.375. Our short position was establihed a few minutes later when the market traded down through our sell stop.
Our second short position was established in a like fashion using the same indicator combination. In this instance the support level established at 121.026 by the JFC Entry Point Indicator served as the entry level when the market traded down through our sell stop after the short trade was enabled by the JFC Reversal Indicator when the small magenta squares stopped plotting at 10:13.
Since the JFC Market Direction Indicator is allowing us to take trades on both sides of the market on this chart day we are also free to establish long positions as indicated by our indicators. The next four signals are all on the buy side.
Buy point B1 is enabled by the JFC Reversal as it stops forming the small cyan squares on the chart above at 11:26. The resistance point as esdtablished by the JFC Entry Point Indicator above the market at 118.50 becomes the placement level for our buy stop. We have a new long position when the market actually trades through our buy stop at 12:05.
One may ask at this point why additional buy signals were not given by this combination as the market dropped between 10:30 and 12:30. For a discussion of the interractivity of these indicators and the placement of buy and sell stops please refer to the section on the JFC Entry Point Indicator on charts 37 thru 39 EPT and the section on the JFC Reversal Indicator.
Points B2, B3 and B4 show long entry points which are identified in the identical method as used for point B1 above. Entries were taken at 119.25, 122.25 and 125, respectively.
More Details: JFC Entry Point Indicator JFC Reversal Indicator