Kiy - Yes, you missed the top of the last page (5). The Upper Trend Line (UTL) = EMA 11 (high) which is the top green line on my chart.
The Lower Trend Line (LTL) = EMA 11 (low) which is the bottom green line on the chart.
The UTL is the trend line that confirms a P1/P2. Once you get one time frame down all the others from Daily to Monthly are the same, except for the Bull (B-S-2) & Bear (B-S-1) just a different indicator for confirmation. It's a pretty simple system with only uses 6 main indicators. The EMA 8 (blue line) is a good OB/OS indicator. The EMA 8 will stay most of the time between the UTL & LTL. When the EMA 8 is at or above the UTL that is OB, when the EMA 8 is at or below the LTL that is an OS indicator. But you always have to be aware of the status of the higher time frames. If a Daily confirms a D-S-2 the 60 min EMA 8 will likely go into OB for short time. If a W-S-2 is confirmed the 60 min EMA 8 will likely be in OB for longer period of time and the Daily EMA 8 will likely reach OB area. It works just opposite for the downside. Like I said, it's a pretty easy system.
A P2 (60-S-2, D-S-2, W-S-2, M-S-2) is confirmed when the SPX touches the respective time frames UTL. A 60-2, D-2, W-2, M-2 are confirmed when either the EMA 3 (red line on the chart) has a confirmed crossing above the respective UTL or the MACD is confirmed above the zero line & the MACD histo is confirmed green in the respective time frame. A 60-E-2, D-E-2, W-E-2, M-E-2 are confirmed when the EMA 3 is above the UTL, MACD is above the zero line & MACD Histo is green (all three indicators have to be confirmed in the respective time frame). A 60-SC-2, D-SC-2, W-SC-2, M-SC-2 is confirmed when the average extended phase duration has been exceeded.
A P1 is confirmed as follows for each time frame:
60 min - When the SPX opens the hour below the UTL and remains below the UTL to the close of the hour, a 60 min P1 (60-S-1) is then confirmed. A 60-1 is confirmed when either the EMA 3 has a confirmed crossing below the LTL or the MACD is confirmed below the zero line and the MACD Histo is confirmed red. A 60-E-1 is confirmed when the EMA 3 is below the LTL, MACD is below the zero line and MACD Histo is red (all three indicators have to the confirmed. A 60-SC-1 is confirmed when the 60-E-1 average duration has been exceeded.
Daily - When the SPX opens the day below the UTL and remains below the UTL to the close of that day, a Daily P1 (D-S-1) is then confirmed. A D-1 is confirmed when either the EMA 3 has a confirmed crossing below the LTL or the MACD is confirmed below the zero line and the MACD Histo is confirmed red. A D-E-1 is confirmed when the EMA 3 is below the LTL, MACD is below the zero line and MACD Histo is red (all three indicators have to the confirmed. A D-SC-1 is confirmed when the D-E-1 average duration has been exceeded.
Weekly - When the SPX opens the week below the UTL and remains below the UTL to the close of the week, a Weekly P1 (W-S-1) is then confirmed. A W-1 is confirmed when either the EMA 3 has a confirmed crossing below the LTL or the MACD is confirmed below the zero line and the MACD Histo is confirmed red. A W-E-1 is confirmed when the EMA 3 is below the LTL, MACD is below the zero line and MACD Histo is red (all three indicators have to the confirmed. A W-SC-1 is confirmed when the W-E-1 average duration has been exceeded.
Monthly - When the SPX opens the month below the UTL and remains below the UTL to the close of the month, a Monthly P1 (M-S-1) is then confirmed. A M-1 is confirmed when either the EMA 3 has a confirmed crossing below the LTL or the MACD is confirmed below the zero line and the MACD Histo is confirmed red. A M-E-1 is confirmed when the EMA 3 is below the LTL, MACD is below the zero line and MACD Histo is red (all three indicators have to the confirmed. A M-SC-1 is confirmed when the M-E-1 average duration has been exceeded.
Bull Market - A Bull market (B-S-2) is confirmed when either the EMA 3/8 closes the month on the Bull side or the MACD (3,8,1) closes the month above the zero line. A B-2 is confirmed (same rules as the M-2). A B-E-2 is confirmed (same rules as the M-E-2). B-SC-2 is confirmed when the B-E-2 average duration has been exceeded.
Bear Market - A Bear market (B-S-1) is confirmed when either the EMA 3/8 closes the month on the Bear side or the MACD (3,8,1) closes the month below the zero line. A B-1 is confirmed (same rules as the M-1). A B-E-1 is confirmed (same rules as the M-E-1). B-SC-1 is confirmed when the B-E-1 average duration has been exceeded.
AI
