Mikula Forecasting Company

MarketWarrior: Swing Projector Type #6 Sell Signal

Here is a Swing Projector Type #6 sell signal. The chart below is a daily chart for Apple Inc. This sell signal uses three indicators. First is the Swing Projector. Second a momentum indicator and in this case I am using the Stochastic of RSI. The third indicator is one of the planet line indicators. When selecting the planet line indicator and which planet to use you need to select an indicator and plant that has seen a Change In Trend (CIT) in the recent past. On the chart below, look at the label "Previous change in trend on the Mars line". This label points to a top in August 2008 where the Apple Inc. made a top on the Mars Conjunction line. For this reason the indicator I have selected is the MarketWarrior "planet Lines by Aspect" indicator and the chart below shows the Mars Conjunction line and the Mars Sextile line. The sequence of events we are looking for with the Type #6 sell signal are described below.

1) First the momentum indicator should be very high, close to 100. Most momentum indicators move from 0 to 100. The represents a very over bought market.

2) The price should be on top one of the planet lines. The best situation is when the market is making a consolidation area on the planet line.

3) The Swing Projector should be making a large pivot warning symbol. This is the red triangle with the "T" inside that points down.

4) When all three of these items appear together you should watch for the first indication of the market turning down and sell short. If you are watching a stock which you can not sell short you can use this as an opportunity to exit any long position you have.