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The purpose of this tutorial is to explain briefly the usage of JFTS Indicators.



Identifying tops and bottoms

At the end of the indicator panel it is possible to verify that there are 3 tops (tops1) and 3 bottoms (bottoms1).

Drawing two horizontal lines for these tops and bottoms, it is possible to notice that around 14:46h the tops1 and bottoms1 levels already appeared as a region of uncertainty, with small breakouts and touches both in the tops1 and in the bottoms1.

From this point of view, it is plausible to consider tops1 as an overbought indication, and bottoms1 as a support.

The break of these levels, tops1 or bottoms1, can be indicative of either the resumption of the uptrend or a new downtrend.



Identifying Suports and Resistances

Highs and Lows according to tops1 and bottoms1

The two horizontal lines on the price panel, one associated with tops1 and the other with bottoms1, show the price range where the fight develops.

From the point of view of this indicator, the break of these levels, High of tops1 and Low of bottoms1, can be indicative of either the resumption of the uptrend or a new downtrend.



Pullbacks and Retraces

On this chart, already with the JFTSChannel indicator applied, we can see how things unfolded.

As analyzed in the previous charts, it can be observed that there were breaks in the two levels mentioned, in 'Break High' and 'Break Low'.

The Break High breakout shows Book in the bullish region, which makes it a candidate for a buy trade.

Likewise, the breakout at Break Low shows Book in a bearish region, a candidate for a sell operation.



Applying the JFTSForcesCore indicator.

This chart shows the three indicators together.

It is important to remember that we must always keep in mind that we are in the 'We are here' bar (now 'We were here').

We did the analysis according to the JFTSBook and JFTSChannel indicators and now, as if by magic, we are seeing the future and what actually happened.

What happened (or would happen) is that the JFTSForcesCore indicator confirmed (or would confirm) the two aforementioned entries, highlighted by the ellipses on the chart.

The first entry in 'Break High' is a pretty debatable entry.

If we observe that between 14:48h and 14:51h there were two tops, with three buy signals that would result in a loss, perhaps the most sensible thing would be to avoid it.

On top of that, the first top set a new high within the trading period, which shows the dashed green line (one of the JFTSForcesCore plots).

The point is that breaking these tops would likely confirm a resumption of the uptrend, but going against them is doing the hard work.

There is nothing wrong with being patient and waiting for someone else to do it for us.

In the end, the fact is that when these tops were reached again, the bears reacted again.

The second entry, at 'Break Low', was actually confirmation of the bearish reversal.

It should be noted that the previous reversal signals, including the low of the trading period that is not even visible, are not as strong or significant as the first entry.

In other words, there was a path, a space, in the search for some profit.

Final considerations.

Understanding the indicators allows you to at least anticipate possible entries.

As mentioned on the home page, it is extremely difficult to obtain a parameterization that remains consistent over days in terms of profits.

Operating in discretionary mode and knowing the indicators, once you visualize the conditions for an entry, you can switch the JFTSAutoTrader strategy to Auto mode.

Thus, once the other forces evaluated internally, as well as the existence of a pattern, generate the input signal, the order will be sent immediately.

There are three situations from the input:

1) The operation does not evolve but neither does it go backwards.

2) The market shows signs of turning with the possibility of generating a stop.

3) The operation evolves and shows to be very promising.

In either case, only with practice and careful observation of the various signals on the chart can we define how to conduct the current trade.

Lose little, follow the profit plan, if the market smiles at you, use the Trigger or StopLoss control, which can be moved to other levels.

Automated trading does not mean go fishing while your computer trades for you.

I highly recommend that you are within close proximity to your computer while it is running an automated trading strategy; you never know what can go wrong.

JFTS AutoTrader is a nice tool for auto and discretionary trading

Risk Disclosure:

Futures and forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment.

Risk capital is money that can be lost without jeopardizing ones’ financial security or life style.

Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.

Hypothetical Performance Disclosure:

Hypothetical performance results have many inherent limitations, some of which are described below.

No representation is being made that any account will or is likely to achieve profits or losses similar to those shown.

In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program.

One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight.

In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading.

For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results.

There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all which can adversely affect trading results.