The Brief Explanation
Pre-Alert Indicators are based on a unique pattern-recognition concept and are proven to be one of the most effective charting and analysis tools available. They are designed to help alert you to trading opportunities prior to conventional charting indicators allowing you greater chance of profiting from market trends.
There are 6 unique Pre-Alert Indicators: Accumulator, Conductor, Distribution, Turning Point, Retracement and Market Conductor.
Set 34 days, 3% drop, 1% volume
With the broad underlying trend of global equity markets being bullish, the Accumulation Indicator is designed to detect increased buying activity in stocks that are trading at a discounted value, have met support levels, or there is some ‘knowledgeable’ buying. Due to the nature of the signal, looking for short-term sell-offs that are then met with unusually high volume, the indicator is most successful in periods of market strength and, when used in conjunction with the Conductor indicator, will often identify appropriate entry points at price troughs or positive long-term reversal points.
Pre-Alerts are even more powerful when combined and utilised as part of an overall trading strategy as each Pre-Alert Indicator helps assist in supporting alerts from the others. This method of trading aims to assist you in building a much clearer picture when reading the charts. There is no question that the Pre-Alerts are a superior way of assisting you to trade the market. If you are relying on industry standard indicators alone, you risk leaving your money on the table. The pre-alerts are unique to the Market Analyser™.
Set at 4 for up to 6-month chart, set 5 or 6 for longer
The Conductor has been designed as a short-term trend reversal filter. The Indicator can be used on various settings to help you pinpoint the ideal entry or exit date in any stock. Now proven over five years, the Conductor Indicator has repeatedly shown accuracy in price turns and therefore boosted accuracy for entry and exit points. The default strength setting for the Conductor is 4. A lower number (say, 3) is not so strong reversal of price, whilst a higher number (say, 6) is a stronger price turn sensed.
Set 34 days, 3% rise, 1% volume
The Distribution Indicator is essentially looking for periods in a share price where a relatively sharp breakout move has occurred with significant volume taking place. With this in mind, the indicator can be applied to both rising and falling markets with equally high levels of success. In a down-trending market, peaks which are met with high volume can often lead to reversal points and a continuation of the downtrend In rising markets the Distribution Pre-Alert can be used as a breakout alert, as the volume increase identified by the signal is often a result of the price action taking out short term resistance levels. Could be seen as ‘clever’ selling and/or a ‘profit taking’ indicator. ‘Sort of’ opposite to Accumulation indicator.
Set at 45 days with 40-60% band
The Retracement Indicator is one of the most powerful indicators available. All experienced traders understand that the market moves in cycles and most often when a stock is in a strong up trend it will find renewed buying at 50% of its prior move. It is at these levels that the smart money comes back into the market. The Retracement Indicator assists you with scanning the market to find these opportunities. Should be used in conjunction with the Conductor indicator, and sometimes one sees the Accumulation indicator and TP as well.
The Market Conductor, which is the coloured dot on each candle, could be considered a 6th pre-alert as it shows how the program considers that particular candle’s time period movement in relation to the trend
Set at 14 for short term, 20 for ~6 months, 34 for longer
The Turning Point Indicator helps a trader to locate likely reversals within a stock, and is a great visual tool that helps remove the guesswork in support and resistance positioning. This is a moving indicator that will set once it feels the trend reversal is sustained. As well as assisting with turning points for stock prices, this TP indicator is a ‘must use’ for all currency traders. Should be used in conjunction with the Market Conductor indicators on each candle for currency as well as the Accumulator/Distributor and Conductor indicators with equities.
We can now move on to examples and further explanations of each Pre-Alert. Please note some charts featured in this document are of equities on the Australian and international exchanges including Forex, regardless the general principles regarding the Pre-Alert Indicators remain the same for any market.
One can see from the example above that the pre-alerts are very accurate at showing behaviour prior to any movement in price.
Please take time to read this summary and study the following examples. The charts show some indicators loaded and some of the trades found when compiling this help sheet.
The main Pre-Alerts are explained separately on the following pages. Be sure to use a combination of Pre-Alerts to assist you in any trades you may be considering. Should you have long-term holds you can trade in and out using the Pre-Alerts as a guide, thus increasing your holding or placing cash elsewhere when out of a stock.
Please be sure to load the pre-alerts!