Mikula Forecasting Company

MarketWarrior: Swing Projector Type #4 Buy Signal

In this example we are going to work with two indicators. The Swing Projector and the ADX. The ADX is an indicator which may not work in thinly traded markets. In this example we will be using the 1 minute chart for Apple Inc. symbol AAPL because this market has a large amount of activity on the 1 minute chart. In other markets you may need to use the 5, 10 or 15 minute chart. To make this as clear as possible, I will describe the Type #4 buy signal as a series of steps that represent what you are looking for to identify the buy signal.

1) First, the ADX need to be at a high value. Normally this would be above the ADX Trend Level. We would also like to see the ADX start to turn down and begin to make a top.

2) Second, while step 1 is occurring, the Swing Projector must be showing the Warning Pivot Symbol. The Warning Pivot Symbol for a bottom is the red upward triangle with a "B" inside. On the chart below, you can see this setup. The ADX is making a top above the Trend Level and a Warning Symbol has occurred.

3) The final step is to see the price start to move up away from the Warning Pivot Symbol. When the price starts to turn up, the buy signal is given and you would look for an opportunity to buy long.



The chart below shows what happened after the Type #4 Buy Signal was given. You can see the 1 minute chart for Apple formed an upward swing.