Mikula Forecasting Company

MarketWarrior: Swing Projector Type #4 Buy Signal

Here is another example of the Swing Projector's Type #4 Buy Signal. In this example we will use the 60 minute chart for the 30 Year Bond which is eSignal symbol $TYX. The Type #4 Buy Signal uses two indicators, the MarketWarrior Swing Projector and the ADX. I will describe the Type #4 buy signal in the three steps shown below.

1) First, the ADX needs 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. This setup is shown on the chart below.

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 upward 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 60 minute chart for $TYX formed an upward swing.