Key: “Pat” = Pattern Cows and Cocoa have IR/NR7 but most other markets show wr7 or range expansion. After range expansion, odds favor “Z” day or morning trading range/consolidation.
“B” is for when there is a three bar triangle pattern – something that can lead to a trade in EITHER direction. Thus ignore the 2 period ROC signal unless you have high degree of confidence from something else.
“TP” is trend potential – the lower this number the greater the odds of good trend day. Anything below 40 tends to be significant. Copper and Cocoa have low readings.
3 and 3. This is PF3, positive feedback. A PF3 means the slope of the 2 period ROC, the 3/10 osc fast line and the 3/10 osc slow line were all in the same direction. If you see 2 PF3s DOWN (-1 -1) in an overall uptrend that is one of the best Buy Signals. For example, Sugar just had 2 “PF3s down” 3 days ago which set up upside breakout from coil. Now it has two PF3s up – not a short signal, but may need a consolidation day. Sometimes if there is just 1 PF3, it May be a short term climax.
“P is for pinball Buy or Sell – similar to looking for retracements on a 120 minute time frame.
“5” is for when there is the first close on the opposite side of the 5 period daily moving average after an extended run.
-D or +D is possible buy or sell divergence on the daily OSC. Ignore this signal if the weekly chart has good trend intact.
“Sig” = 2 period ROC. S = first day flip down. (S) 2-period ROC has been down for more than one day – look for potential reversal. (Buy Day). STPvt. tells level that will cause 2-period ROC. 2 ROC – momentum trading on the close. 2 ROC Reading from the day before.