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...
.."Tape reading is rapid-fire horse sense...The Tape Reader aims to make deductions from each succeeding transaction -- every shift of the market kaleidoscope; to grasp a new situation, force it lightning-like through the weighing machine of the brain and to reach a decision which will be acted upon with coolness and precision"..
Richard D Wyckoff
.."The key to making money in stocks is not to get scared out of them"
Peter Lynch
.."The democracy will cease to exist when you take away from those who are willing to work and give to those who would not"...
Thomas Jefferson
..."I always believe that prices move first and fundamentals come second"..
Paul Tudor Jones
..“I buy on the assumption they could close the market the next day and not reopen it for five years” and “Much success can be attributed to inactivity. Most investors cannot resist the temptation to constantly buy and sell.”..
Warren Buffet