Alpha Thrust
Are Institutions buying or selling?
Last updated
Are Institutions buying or selling?
Last updated
The Alpha Thrust indicator is part of the Confirmation Suite. We use the Alpha Thrust to help confirm moves and setups that we identify on either the Alpha Trend or Alpha HTF/LTF. Confirmations can help increase the probability of having a successful trade & should help you feel more confident about the execution.
Alpha Thrust is designed to specifically identify large market movements. Often these movements are created when large hands such as Institutions and whales are buying or selling. Normally these large hands are a good indication that the move might be substantial and continue in the direction of the setup.
First you will notice the different color bars. Each bar color represents how much strength is in each signal.
Blue bars = neutral signal
Show that there is no discernible strength to the upside or downside.
Green bars = high bullish strength
Show that there is decent bullish strength in the signal
Red bars = high bearish strength
Show that there is decent bearish strength in the signal
Orange bars = EXTREME strength either bullish or bearish
Show that there is EXTREME strength in the current direction. This extreme reading can be bullish or bearish depending if the bar is in the direction or the upside or downside. Upside orange bars are bullish. While downside orange bars are bearish. These are our most important bars to lookout for and identify.
Example of signals working on Bitcoin price action. We will get into more details of what we are looking for here in order to get ideal confirmations.
These signals outlined above is how you read the Alpha Thrust. But there are also a few patterns we can look for in the Alpha thrust to give us even stronger signals. Clusters & a "Change of power. Lets go over these two Thrust patterns
Clusters:
Any clusters of green, red or orange should draw your attention and are usually an extremely strong signal. Clusters are way more powerful that standalone color signals. The closer the cluster is the stronger the signal. Ideally clusters would be same color bars in a row
Alternating Change of Powers:
Any alternative bullish then bearish bars colors show that a change of powers has taken place & should be considered our most extreme signals. For the most powerful combo out of this technique we can look the extreme orange bar to be part of the change in powers. This will show institutions changing price action bias & can result in extreme price action.
Below are examples of the Thrust Indicator confirming a variety of different setups. I have numbered each setup on the chart. Lets define what each setup is confirming on the chart:
The orange thrust bar is confirming not only a green momentum bar, but ALSO the squeeze breakout and arrows! This is a very potent & dynamic combination!
This setup has a green thrust bar confirming a green bullish momentum bar. You can see what happened next
This setup has a green thrust bar confirming a green bullish momentum bar as well as a green strength arrow
This setup has a CLUSTER of green thrust bars confirming a green bullish momentum bar. You can see what happened next
This setup has a CLUSTER of red thrust bars confirming a red bearish 8/9 signal
Below is another example highlighting only Clusters or Change of Powers in the Alpha Thrust. All Cluster setups are labeled with a 1, and all Change of Powers are labeled with a 2. You can see that even using the Thrust indicator alone without being confirmation can lead you great results. This is Bitcoin daily chart of 2020/2021. We will be moving on how to use Alpha thrust as confirmation next.
Now that we have gone over what the Thrust indicator does and how to use it by itself lets focus now on its real purpose for being in the Alpha Trend family - The Alpha Thrust is the number one indicator used for our confirmations of our other setups that come from the Alpha Trend and the HTF/LTF Suite. Confirmation are great ways to help increase the confidence you have in a particular trade as it shows important confluence. The more confirmations you have, the higher the probabilities are of the trade working out in your favor.
Lets run through some examples of the Alpha Thrust being used SOLELY for confirmation of the long entry setup. First we have an example below of the Alpha Thrust confirming a Squeeze Breakout from the HTF Suite. This got us into a trade that started at $34k & went all the way to $65k before the trend was broken. This is the power of Confirmations.
Lastly we have an example of the Alpha Thrust confirming a Reversal Bar from the Alpha Trend Suite. Big thing to notice here as that we did not get confirmation from the following price action bar after the Reversal candle like we usually look for - the confirmation ONLY came from the Alpha Thrust indicator. This is why using our confirmation indicators with our premium indicators can be a make or break for some of your biggest trades. This Trade was on the daily chart of Bitcoin during the 2020/2021 bull run. Those that missed it regretted it for the entire year as price just kept climbing making it harder for them to enter.
Signal
Bullish or Bearish
Definition
Blue Bars
Neutral
No discernible buying/selling pressure
Green Bars
Bullish
Decent Bullish discernible buying pressure
Red Bars
Bearish
Decent Bearish discernible selling pressure
Orange Bars
EXTREME (Either)
EXTREME buying or selling pressure based on direction