SATS2 Expert Chart Template

I think you will agree that the perfect mechanical trading system without losing trades does not exist. However, a good profitable system can give even better results using technical analysis techniques to avoid some losing trades or by taking some early profits.

Always keep in mind that the mechanical system (SATS2 here) is the boss and must stay in control synchronizing the process.

To help you in making decisions to override SATS2 we will use mainly support and resistance lines, trendlines, Elliot wave analysis and a couple of custom indicators.

To assist you with a manual Elliot wave count, I will also introduce a special indicator.

 

Chart configuration

The used chart template has 4 parts.

Bar or candlechart with SATS2 expert

The first part is the price represented as a bar chart or candlestick chart, color coded by the SATS2 expert (see SATS2 basic application).

The first green bar after a red bar is a buying signal.

The first red bar after a green bar is the selling signal.

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SVE_EW_Count; an Elliott wave count aid

The second part is the custom SVE_EW_Count indicator that will help you to distinguish Elliott wave counts. This indicator is projected over the price bars (brown line in figure 2.1).

In the simple example of AMD below, the impulse wave up (5 waves) with an extension in wave (3) can be manually labeled easily with the help of this indicator (figure 2.2).

Figure 2.1: Color coded chart by SATS2 expert and Elliot indicator SVE_Elliott_Count.

Counting Elliott waves will be very helpful in estimating the direction of the next move. In PART IV you can find detailed educational information about Elliott wave analysis.

Figure 2.2: Labeling the Elliott impulse wave up with the help of SVE_EW_Count

SATS2 Chart Template Next -Part 1 -Part 2

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