Get Ready
Most of the tools in MTA are renditions of classic signals that have been around for awhile. Voi-Get Ready, however, is our own concept. Accordingly, we have included some examples of how to best utilize the tool in your trading.
We will discuss two examples of when Get Ready will give signals. These are:
- Continuation signals and
- Reversal signals.
It is important to remember:
- A Continuation signal after a major move should be taken with extra care. Perhaps the move is over. Additionally, a Continuation signal may "take more heat." That would be because of normal market retracement before continuing in the original direction.
- A Reversal signal after a move should be taken in conjunction with agreement in RSI, MACD, LRS and/or other divergences. The Get Ready tool will not consider these other elements. You must do this manually before taking a trade.
- The tool is named "Get Ready" - not "Jump In." In other words, just because the klaxon sounds and Beth says, "Get ready to go Long," does not mean to jump in the market without considering all the above.
Here is the first example:
REVERSAL SIGNALS:
In the example (above) we see the market has been climbing. We notice a peak in the RSI (subgraph 2) and MACD (subgraph 3). At the time of the Get Ready Short signal (at the extreme upper right of the chart) we can see divergence in both RSI and MACD.
Beth gives us the GR Short signal, as indicated by the white "GR" above the bar - pushing down on the bar, telling us it is a short signal. Additionally, information is printed in the print log, giving the price to enter the market, what Catastrophe Stop to use, and also what Target price to use. (Note: These are simple recommendations and are not to be construed as "trading advice." You (the trader) are to take responsibility for all trading decisions.)
CONTINUATION OF REVERSAL SIGNAL:
As we continue our discussion of the Get Ready Reversal signal, we see that the very next bar fell through our Sell Stop price, and that our Target price was hit on the last bar showing in this example.
You might also notice that Beth issued another GR Sell signal on the last bar. This time it was a GR Continuation signal, recommending a Sell Stop 1 tick below the low of the signal bar. The market did not fall through our Sell Stop price. We were therefore not filled in the next two bars, so we cancelled our Short Stop order. (Not shown here.)
CONTINUATION SIGNALS:
In the middle of the (above) chart you can see a Get Ready Short (continuation) signal that never materialized (in the next 2-3 bars), so the order to the broker was cancelled. The high of the 2nd green bar after the signal would have presented us with a situation where our most recent High would be too far away from our market entry, so this trade order should be cancelled for that reason alone. It is good policy to cancel a GR stop entry order after the close of the 2nd or 3rd bar afterward.
The bar on the far right of the chart is a GR Long (continuation) signal. As we look at the RSI and MACD at the bottom of the chart, we get no help. (No divergences showing at this time). We place the order..
CONTINUATION OF PREVIOUS TRADE:
This illustration shows what happened to the market after our GR Long Stop order was placed. The order was placed after the close of the 1st red bar with the "GR" under it. As you can see, the market did not push up on the next bar, but moved up to touch our Entry and Target on the subsequent bar.
The last bar on the chart, the red bar with the "GR" under it, is another continuation signal. To place a Long order at that point is asking the market to continue to move up after it has already moved 800 points.
As you can see on the next chart, the market did continue to move upwards, but only after a 40% retracement.
The last Get Ready signal on this chart has something in common with the first Get Ready signal in the illustration - they both never materialized into an active market position, as the Stop entry prices were never touched by the market.
As a point of interest, notice the RSI and MACD are making higher highs. This usually indicates that the market will continue up. Although it is not shown on this chart, on this morning of March 27th the market did continue upwards. However, an entry at the top of this chart would have needed a 2.50 point trailing stop to avoid being taken-out during normal retracement.
