This post will focus on combining the PTG Value Chart (VC) with PTG Cycle Trend (CT) to help increase the odds of a successful trade outcome. We are talking probabilities here, not certainties. The PTG Value Chart displays trend as an overbought/oversold oscillator. Trend inputs can be customized for Directional Movement, Ergodic, or EMA values. The tick bars change color based upon which trending condition is in effect at the moment. These can change quite rapidly on very micro time or tick frames, so it is best to view them as reference. When price pushes to +8 traders view this as over-valued and -8 as under-valued, hence price continues to oscillate between these value parameters in a never ending battle for control. As with any oscillator divergences occur and provide the trader with solid trade opportunities.
The PTG Cycle Trend seeks to identify specific “turning points” in price swings. It is a simple yet effective buy and sell indicator that alerts the trader to a possible end in the current swing. When combined with the VC divergence analysis the trader can increase the odds of a profitable trade outcome.
Click on chart for larger and more detailed view of commentary.