How to Use Our Triggering Levels
Clients requested to be informed about potential signals in advance as they sometimes receive them out of nowhere. We have therefore introduced a new section “Triggering Price Levels” in the client area. Let me explain in detail how to use them:
When I developed Dynamic System, the idea was to exploit both large trends and ranging markets. It was therefore necessary to be offered sufficient precision to take advantage of these market environments. In ranging markets, the triggering levels tend to cluster over time, hence causing more frequent signals. They free up again once large trends are established such as during 2003-2009. Currently we are clearly in a ranging phase.
The scale basically goes from very long term to very short term. All of them have the same relevance for triggering an entry signal. You can also regard them as support & resistance areas. Let’s take the recent short signal (August 11th) for instance:
- Price was nearing the mid-term triggering level 113.50 from below
- Based on the bias color (bearish), clients know that it could signal a short
- Price reverses nearby and our system gives an entry signal
These levels are not exact buying or selling recommendations. This is something that no system can tell in advance. Instead our system goes into detailed momentum analysis first by observing price action and the speed at which price moves. Once a reversal is observed there, it will enter a position and place the stop loss order accordingly.
