Murray - The EMA 11,low(LTL) is a significant indicator. 1) Most all Phase 1's go below the LTL 2)When the price rises above the LTL it normally is a signal that it is headed for the EMA 11,high(UTL).
As for the EMA 3/8, even though I have that indicator on the 60 min, Daily, & Weekly charts, I only pay attention to the Monthly EMA 3/8. The Monthly EMA 3/8 establishes the long term trend of the market. If you look at the Major Market Trends Period report, that report is based on Monthly EMA 3/8 crossings
As for how the Monthly has an impact on the 60 min, right now is a prime example. The 60 min is now in the 30th trading hour of it's Phase 2, matter fact the 60 min has broke a new record today in the (H-L Diff), it has now gained over 100 pts during this cycle. The Daily Phase 2 is now in it's 3rd trading day, the Weekly is in the 2nd week of it's Phase 2, and the Monthly is headed for the UTL which is currently at the 1284 level. So the Monthly is giving all the indications at this point that it is likely to confirm a Phase 2, so the 60 min is likely to continue to extend because the 60 min price is way ahead of the EMA 11,high(UTL), the reason that is happening is because the long term timeframes are pushing it upward. Now when the EMA 11,high finally catches up, then you will see a 60 min Phase 1. So right now it looks like the Monthly could push the price to the UTL, also another thing to look for is if the 60 min price drops below the EMA 3, that is normally an indication it is headed for the UTL.
As for the MACD(12,6,9) and CCI(24), those are what I consider as secondary indicators. I am mainly looking to see if the MACD or CCI is above or below the zero lines, when the zero line is crossed it can be a confirmation of the trend. Today I will put up charts of each timeframe and you might want to look at how these secondary indicators interact and can confirm a trend. If the Monthly MACD is above the zero line as long as it is above the zero line you will not see a Big Bear market. The Monthly has remained above the zero line this entire Bear market, however, the Weekly fell below the zero line, so this Bear market has basically so far been technically a big Weekly correction. Looking at the chart today the Daily is attempting a crossing above the MACD zero line, the Weekly continues to trend upward toward the zero line. The CCI(24) on the Weekly is close to making a crossing above the zero line. On the CCI(24) I also look for extreme conditions at the +150 and -200 levels.
As you probably know, I'm not a fan of day trading, and my system is primarily geared to long term traders. However, ST traders I believe could benefit greatly from this system as I believe they would probably stay in their trades longer and most likely be more profitable, but that would depend greatly on how they used the system. My goal is to make an annual return of 25%.
As I have been writting this post I have noticed the 60 min is now dropped below the EMA 3. So we shall see if a Phase 1 is coming in the next couple hours.
Yes, as time goes on you will see how everything flows together and you can anticipate major trend changes. One report I have that I believe is very informative is the SPX Cycle Flow Chart. That flow chart shows what has happened in the past, as well as what the future might look like, don't get me wrong, I'm no future teller, but as most of us has learned the market works in cycles, and cycles are like gears on a bicycle, some gears you don't use, but they all have a purpose, try climbing a hill in 5th gear, it's alot easier in 1st gear, however, 1st gear don't work very well on the downhill. When you get up to speed on level ground 5th gear is great and less work.
JMHO, Lindy
"Buy low, Sell high, stay with your system. If your system breaks fix it."
