Hawk’s Scan Sentry Report February 6
Today I want to show you another set-up I like to look for, and offer a few examples of it from current charts. To find the early identification of a bullish trend I look for the Arps Triple Trender to turn bullish (below the price) on all three Trenders and combine that signal with a cross above the zero center-line of the Radar3 Trend Strength Index. It’s pretty simple really. The Triple Trender identifies the orientation of the trend across three different abstract time-frames; while the Radar 3 Trend Strength Index confirms the direction of the trend and identifies the strength of it. This works even better when supported by a divergence in the Radar1 Fear Greed Indicator or the Radar2 Price Leader. You should put your stop on the outside of the long-term Trender because the price will often pull back into the short-term or medium-term Trender before really moving in your direction with conviction . This is a good set-up in both bullish and bearish directions…. But the markets are so bullish right now that it is currently a bit difficult to find this set-up as a short-selling signal.
I am currently bullish on the medium and long-term orientation of the American markets these days for reasons political and historical as well as technical. But, as always, I am preparing myself with trading options in both directions. Here is a sampling of a few that are on my watchlist this week with examples from the set-up described above.
(Here’s a pullback into the short Trenders with a newly bearish Radar3 Trend Strength signal. Note the Radar2 Price Leader crossing under its center-line while the downward pointing blue bars of the Radar3 Trend Strength tool show a pullback indication).
May the trend be with you,
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