Alpha Trend Overview
The Alpha Trend Suite is designed to help you catch macro trends, & draw your attention to possible reversals & local tops.
Last updated
The Alpha Trend Suite is designed to help you catch macro trends, & draw your attention to possible reversals & local tops.
Last updated
It is hard to decifer a lot of the the time if a macro trend is in tact or if you are just subject to another short term rally that we call "fakeouts" before more downward price action proceeds. This often causes investors to easily lose a significant portion of their capital when they are not able to identify and enter the market during the appropriate up-trend, or the reversal. This is where the Alpha Trend steps in and identifies the trends, possible reversals and tops for you.
Alpha Trend suite is designed specifically to determine these market macro trends and to determine whether a Trend Reversal is imminent. This gives the trader the opportunity to make better informed decisions with higher probabilities of making a successful trade. The reversal warnings may also be used as an indication of when to take profits and close a winning trade before it becomes a losing trade. It is all up to the user how they decide to use the signals at their descrecion. Making money can be easy, keeping the profits however can be different story. For this reason we also included a "Local Topping" signal to identify when the up-trend may be coming to an abrupt end. Timing your exits is pivotal to a healthy profit and loss (PnL) & to your overall success as a trader.
There are several different concepts to learn when using the Alpha trend. Once these methods are mastered you will find just how much more accurate the timing of your trades become and how much easier it is to navigate the markets. Alpha Trend will help you in becoming a successful trader & spot the same setups used by professionals in the marketplace today. It is meant for traders of any level from complete beginners to the decades long seasoned professional like John.
The Trading Alpha Suite is designed to specifically to determine the longer term MACRO "swing" trends. It can be used for scalping on lower time frames but where it really shines is on the higher time frames (Weekly, 1D, 4h, 1h)
The Macro Trend is the ultimate strong trend that you want to be able to identify in order to catch major bull and bear markets. By design Macro Trends will not flip bullish or bearish as much as say a "moving average" trend, so it is better suited for longer term moves with a higher probability of identifying the start of a real bull market. It also keeps you in the moves a lot better and longer as it does not flip fop signals during fake rally's.
Determining the trend is an extremely important concept that enhances your trading success. We have gone over how the Alpha Trend helps you to identify trends, but what about keeping you in the trend once it has started?
During an uptrend and downtrend volatility may be concerning as the market will tend to present many fake-outs or as we call them "Shakeouts". These often stop trades from staying in their positions long enough to profit from most of the up-trend. That is where the Strength & Weakness Arrows come in handy, as they are designed to help keep you in the trend & avoid these shakeouts when the readings are strong or weak.
Note that the Bullish and Bearish Strength Arrows are different than the arrows in the HTF/LTF suite.
The Alpha Trend Suite arrows are meant to be used as strength & weakness signals.
HTF & LTF Suite arrows act as confirming volatility squeezes breakout signals.
The Alpha Trend Arrows are a darker shade of green & red while the HTF/LTF Arrows are a lighter shade so you can identify the difference. The HTF/LTF arrows will only appear after a "Shaded Squeeze".
Important not to get them mixed up!
Our most popular signal on the Alpha Trend! Reversal candles may indicate a significant reversal in the near term – Price action making a massive directional change from Up to down or vice versa. These reversal candles should tell you to proceed with caution and to require confirmation to verify the reversal signal. The most important concept to the alpha trend reversals is the reversal candle Confirmation Technique to verify that the reversal signal is actionable & is showing a sign of strength out of the setup. For more details please see the page "Reversal Signals" for more in-depth confirmation details.
Our Potential Local Topping signal on the Alpha Trend indicates that a local top might have been made in price action. Price has a high chance of drawdown when these signals appear. The draw-down could be temporary or be the start of a longer term downtrend. The topping signals are identified by orange bars with a label above the orange bar with a "T". Just like with the Reversal signals these topping indications need to be confirmed via our confirmation technique to be valid.
Signal
Bullish or Bearish
Description
Green Arrows
Bullish
Indicates Confirmed Strength = Large Green Arrows
Red Arrows
Bearish
Indicates Confirmed Weakness = Large Red Arrows
Signal
Bearish or Bullish
Candle Type
Turquoise Reversal "R" Bar
Bullish
Indicates Potential Bullish Reversal
Yellow Reversal "R" Bar
Bearish
Indicates Potential Bearish Reversal
Signal
Bearish or Bullish
Description
Orange Topping "T" Bar
Bearish
Indicates Potential Local Top
Signal
Bullish or Bearish
Description
Solid Green Candle Bar
Bullish
Indicates Bullish Uptrend in tact
Solid Red Candle Bar
Bearish
Indicates Bearish Downtrend in tact