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Our Indicators

Prime Trend Indicator

How We Use It

Our Prime Trend indicator helps in assessing the current market conditions. It analyzes and color-codes price candles to reflect the prevailing market momentum, whether it's an upward, downward, or ranging trend.

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By default, green candles indicate a bullish trend, red candles indicate a bearish trend, and yellow candles indicate a ranging trend.

The indicator can be adjusted to match the timeframe being examined. For daily or weekly timeframes, we use the "Long" setting. "Normal" works well for daily and hourly timeframes. "Short" is most suitable for timeframes shorter than 1 hour.

 

When analyzing a chart, we start from the weekly timeframe and gradually move to smaller timeframes. Trends on longer timeframes tend to be more robust, but trends on smaller timeframes may provide early indications of significant changes. Understanding the overall picture reduces the likelihood of trading against the trend.

Weekly S&P 500 Chart

SPX & SPX weekly chart using Prime Trend to analyse the current market trend before executing a trade.

Daily S&P 500 Chart

SPX & SPX daily chart using Prime Trend to analyse the current market trend before executing a trade.

While it is important and straightforward to follow the trend, knowing when to exit the trend presents another challenge. In general, there are two options for exiting a position: waiting for the trend to change color or utilizing risk management tools. We suggest the latter approach because significant price movements can occur unexpectedly and turn a profitable trade into an unprofitable one. Every trade should have a stop loss integrated in the order. 

4H Bitcoin/USD Chart

Bitcoin & BTCUSD 4 hour chart using Prime Trend to analyse the current market trend before executing a trade.

Daily S&P 500 Chart

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Prime Reversal Indicator

How We Use It

The Prime Reversal indicator assesses the probabilities of a reversal based on historical price action. If you believe that the price has reached a high point or a low point, Prime Reversal can assist you in evaluating the current market dynamics. It is designed to promptly respond to changes in the market and aims to indicate when there is a high likelihood of a market reversal.

30 Min EUR/USD Chart

EURUSD, euro versus us dollar chart using Prime Reversal to analyse the current market trend before executing a trade.

The first setting of the indicator is called "Asset Volatility". For charts of individual stocks or cryptocurrencies, we select the "high" option since these assets tend to exhibit higher levels of volatility. On the other hand, when examining charts of currencies, indices, and commodities, the "normal" setting is generally more suitable. The high setting is more responsive and can be switched to based on specific circumstances, allowing traders to adapt accordingly.

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There are three settings for reversals: weak, normal, and strong, each with customizable colors. In our trading approach, we utilize the normal and strong settings for timeframes below daily, while adding weak signals to the daily and weekly timeframes. However, traders have the flexibility to use weak signals on any timeframe. Typically stronger signals indicate a higher potential for significant movements, whether in an upward or downward direction. By default, the signal strength is indicated by the intensity of the colors. A stronger signal is represented by a deeper shade of red, while a stronger signal in the opposite direction is denoted by a more vibrant green color.

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The blue arrows are particularly exciting for traders as they signify higher probability moves and are usually more intense. Although these signals rarely appear in the normal and strong settings, they often present the best risk/reward trading opportunities.

15 Min BTC/USD Chart

Bitcoin, BTCUSD 15 minute chart using Prime Reversal to analyse the current market trend before executing a trade.

30 Min NIFTY Chart

NITFY 50 30 minute chart using Prime Reversal to analyse the current market trend before executing a trade. Showing blue arrows which are extremely bullish.

Regarding the sensitivity setting, we generally keep it at the default level. However, traders have the option to adjust it to their preference in order to view more or fewer signals. A lower value corresponds to higher sensitivity. While lower sensitivity settings generate more signals, it's important to note that they may not be as accurate as the signals produced by higher sensitivity settings.

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While Prime Reversal reacts quickly and can assist in identifying local peaks and troughs, it is important to use them in conjunction with the prevailing trend. Similar to our trend strategy, it is advisable to approach reversals from a top-to-bottom perspective. Analyzing the bigger picture helps traders recognize the existing dominant trend. As the indicator reacts swiftly, traders should be mindful of the associated risks when using it.

Risk Tools

How We Use It

Risk management is the most crucial part of investing and trading. We know from our trading & experience working with institutions that no trade should be entered without an exit plan. We recommend always setting a stop loss when entering a position and always aiming for at least a 2:1 reward to risk ratio. Trading requires discipline, and it's impossible to win every trade.

 

The primary objective is to enhance the probability of profitable trades and skillfully manage potential losses. In our Prime Trend indicator, we have included popular risk tools developed by the TradingView community, such as the Trend Magic indicator, SuperTrend, Variable Moving Average, and ATR Bands. While these indicators are not exclusive to us, we added them for your convenience because they are tools that every trader should use to manage their risk.

4H TLT Chart

TLT, long term bonds 4 hour chart using Risk Tools to analyse the current market trend before executing a trade.

Another feature we included in our Prime Trend indicator is the automated resistance and support lines. Just like the risk indicators mentioned previously, these can be used to manage stop loss & take profit targets.

 

The main advantage of our support and resistance lines is that we try to predict them before they happen, allowing traders to better anticipate price action. We currently offer two levels of support & resistance (S/R). Level 1 showing minor S/R levels & level 2 showing major S/R levels. We suggest extending past lines to gain a better view of important zones. 

30 Min NVDA Chart

NVDA, 30 minute chart using Risk Tools to analyse the current market trend before executing a trade.

Combining Our Tools

Generating our best trade ideas

The best setups often come when combining all of our indicators. We like to focus on the big picture by first looking at the weekly or daily charts, and then, if necessary, we examine smaller time frames. Bullish reversals, which indicate a potential change from a downtrend to an uptrend, tend to be more effective when the overall trend is still bullish or when the market is in a ranging phase after a pullback. Similarly, bearish reversals, signaling a potential change from an uptrend to a downtrend, are more likely to be successful when the overall trend is bearish or when the market is ranging after a pullback.

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Here are some examples of chart setups when combining our indicators.

Daily EUR/USD Chart

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Daily BTC/USD Chart

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Daily GLD Chart

Gold chart GLD trading using Prime Trend and Prime Reversal on the daily chart. Shows areas to buy and sell.

Curious to know how our indicators perform? You can get a glimpse over here.

Frequently Asked Questions

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