This is a proprietary indicator, part of the RTT Indicator set.Important Disclaimer: None of the proprietary indicators give specific signals of BUY and/or SELL prices or signals for investment decisions. They do however bring your attention to price action for further analysis only. Any BUY or SELL decision is purely your own responsibility. Please understand that we find favor with our proprietary tools, but they do not work all the time, nothing is 100% accurate. Please review our terms of use.
Richard Wyckoff law of 'Cause and Effect' is a simple 'step' formation. RTT Steps is a quick visual of the steps in a chart and thus a measure of Richard Wyckoff 'Cause and Effect' law in action.
The more obvious the 'step' the more friendly the chart is to Richard Wyckoff logic, for the simple reason the law of 'Cause and Effect' is working well.
This is a custom indicator within the readtheticker.com site.
The settings below for RTT Steps is (Monthly, 2,0.1,6,2.5, BUll) Reaction 65%. These settings are based on Monthly OHLC data drawn on a Daily line chart close data. Readtheticker.com allows some indicator to draw at different time frames (ie Monthly indicator on Daily data, Weekly indicator on Daily data).
Click for popup. Clear your browser cache if image is not showing.
A video on the subject:
This is what the monthly chart looks like with the same settings as above: RTT Steps (Monthly, 2,0.1,6,2.5, BUll)
Click for popup. Clear your browser cache if image is not showing.
More with RTT Steps, how to scan for steps to trade!
You can create and LONG or SHORT momentum model:
Click for popup. Clear your browser cache if image is not showing.
RTT Steps is the best tool for the Wyckoff Trend study, much better than moving averages.
Click for popup. Clear your browser cache if image is not showing.
Consider this chart with RTT Steps, do you see true support and resistance provided by the RTT Steps indicator.(Symbol: !INDU, Price data is quarterly). Question: Would you buy after the 1987 crash? Answer: Yes!
Click for popup. Clear your browser cache if image is not showing.
NOTE: readtheticker.com does allow users to load objects and text on charts, however some annotations are by a free third party image tool named Paint.net
Investing Quote...
..."The average chart reader is apt to become obsessed with the notion that the dips and peaks and primary and secondary movements are all there is to stock speculation. If he pushes his confidence to it’s logical limit he is bound to go broke."...
Jesse Livermore
..“If it’s obvious, it’s obviously wrong.”..
Joe Granville
.."It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong"..
George Soros
..“Bull markets are born on pessimism, grow on scepticism, mature on optimism and die of euphoria.”..
John Templeton
.."A government is the most dangerous threat to a man's rights: it holds a legal monopoly on the use of physical force against legally disarmed victims"..
Ayn Rand