Mikula Forecasting Company

MarketWarrior: Swing Projector Type #4 Sell Signal

Here is another example of a Swing Projector Type #4 Sell Signal. This example uses a 30 minute chart for $XAU, the Gold/Silver index. The Type #4 Sell Signal uses two MarketWarrior indicators, the Swing Projector and the ADX. The charts below show both indicators applied. There are three steps involved with this sell signal. I am going to describe each step below.

1) The first step in the Swing Projector Type #4 Sell Signal sees the ADX move above the Trend Level and up to a high level in relation to the previous ADX values. On the chart below, the ADX is above the Trend Level but is not quite at the highest levels seen on the chart. We would also like to see the ADX start to turn down and begin to make a top. In this example the ADX is starting to turn down.

2) Second, while step 1 is occurring, the Swing Projector must be showing the Warning Pivot Symbol. The Warning Pivot Symbol for a top is the red downward triangle with a "T" 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 down away from the Warning Pivot Symbol. This has not occurred yet. Because the ADX is not at the highest levels in relation to the recent past, the final step where the price will turn down may not occur until some time on Oct 30 or Oct 31. When the price starts to turn down, the sell signal will be given.