Home| Faq| Forum| Purchase| About Us

If you are new to trading, this page is probably the best place on our site to start because it features our Trendline and Pivot extension indicators. These two indicators take the least effort to configure and will give you plenty of locations to observe price reaction and contemplate ways to capitalize upon them.

Our Adaptive Trendline indicator simultaneously maintains both upper and lower trend lines where possible, and will update one of its lines depending on the close direction of the last bar. It also is able to display trend lines from multiple time frames giving you ample time to watch for intersecting confluence. Today it is still one of my favorite indicators and one I would never trade without.

Perhaps the easiest way to explain how our Adaptive Trendlines operate will be to take them one at a time, so I will begin with the upper trend line. The latest upper trendline will always connect to the top of the last down-bar and use it as a fulcrum point. Imagine that point as being the center of a clock with an upward vertical line attached and extending above it, as though it were a minute hand in the 12:00 position. Now imagine the clock moving counter-clockwise until the line rests on top of the first historical price bar and you have the two points creating the last downward-sloping upper trend line.

For the lower trend line, extend the imaginary vertical line downward from the bottom of an up bar to a 6:00 position. Then swing the line clockwise this time until the line touches the bottom of the first historical price bar and you will have found the beginning point of the upward-sloping lower trend line.

---

This method insures that whenever possible, the earliest line-of-sight pivot on your chart can always participate. During periods of extended downward price action, several upper trend lines may accumulate above price at various slopes, and vice versa. This is a normal occurrence due to eclipsing, and the more lines the better because when the trend reverses, they all represent structural test points from multiple time frames where possible exhaustion could occur. There will be times, depending on market conditions, when several upper trend lines and several lower trend lines may appear on the chart, and other times when only an upper or only a lower trend line shows.

Violated trendlines typically erase on opposite bar closes, but when it is the only or last trendline in the area, we delay it a bit because of the market's tendency to re-touch major ones on break-outs. There is a preference setting common to all our trendline indicators to attach the line to either the "Wick" (HiLo extreme) or "Body" (Open) of the candlestick. Personally, I favor plotting to the open of the bars because it’s easier for me to see wick penetration and judge my entries. It is not the intention of this indicator to plot cut-through trendlines. That will be the job of two other indicators. One is called Rotation Zones and the other is called Redundant Pivot Lines (RPLs). Below is a brief summary of each.


The Pivot Extensions indicator is a nifty visual aid used for extending pivot levels to the right side of the chart to help you line things up. It can do this using either the pivot bar’s body or extreme. Best practice is to load 3 or 4 cascaded iterations of scale on your chart and vary the line widths accordingly. So as the pivot graduates in magnitude, its strength is still conveyed when out of view.

There is also a “Line Termination” setting to control how many bars to continue plotting the pivot line. This handy feature prevents clutter by allowing you to weed out smaller pivot lines as maturing structure lessens their significance. Ideally, “Line Termination” should be set with overlap replacement in mind.


Our Rotation Zones indicator is an early range-bound seeker that begins shading a rectangle over an area whenever it determines that a range-bound condition could be setting up. When triggered, it marks the confirmation bar with a red outline and continues to plot the zone until a true breakout bar occurs.

What is interesting about this indicator is that you can sustain the zone plot for any number of bars and base it upon a specified number of bars that remain in the zone following the confirmation bar. This means that while its a hit or miss indicator, if it's a miss the plot terminates rather quickly, however if the zone persists, the plots are almost always worth sustaining for a while.


Coming soon!   Redundant Pivot Lines (RPLs) are cut-through trend line trajectories connecting two or more pivot locations. RPLs are highly respected single-line resistance levels because they are based from multiple confirmed locations. In the overall resistance hierarchy, some Fibonacci lines graduate to become pivot extensions and some pivot extensions graduate to become RPLs.

Our RPL indicator will have the ability to seek and plot multiple pivot lineups both horizontally and diagonally. Intelligent sustain abilities will be improved upon and strength levels differentiated by line attribute options will also be available.

Copyright 2009. ProTradingTools. All rights reserved