SATS2 Expert Chart Template Part 2

The third part is the custom SVE_RSI_Swing oscillator.

This short term SVE_RSI_Swing oscillator (figure 2.3) is created in a separate inner window and will help us to eventually stay in a trade after a SATS2 selling signal. That will be mostly te case when reaching a point where the uptrend is going to continue after a small correction phase. The reference lines at the levels 10, 50 and 90 are added manually in the formula properties tab with the horizontal line function.

March 31, 2003 we have a SATS2 red bar selling signal in AMD. The day of the selling signal the SVE_RSI_Swing oscillator with a value close to 10, is oversold. There is a fair chance price is reaching the end of a short term reaction phase and will continue to move further up soon.

 

Of course we will combine this finding with the corresponding Elliott wave count based on the SVE_EW_Count indicator. Here we can see that we have reached a top for wave (3) and that we are now in the process of making correction wave (4). This is basically a limited reaction and followed by wave (5) that must bring price above the top of wave (3). And as you can see in the next chart of figure 2.4, this was actually the case.

Notice also how additionally we could draw a support line and that this support is not broken by a closing price.

The oversold position of the SVE_RSI_Swing oscillator, the Elliott wave count and the trendline support made up 3 good reasons not to exit the trade during the October correction.

Figure 2.3: Exit the trade here?

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SVE_RSI_Osc oscillator

The fourth and final part in the chart is the custom SVE_RSI_Osc oscillator.

This oscillator is created in a separate inner window.

The SVE_RSI_Osc oscillator stays most of the time above zero level for medium term up trades and below zero level for medium term down moves.

The SVE_RSI_Osc oscillator will be mostly applied to decide taking an early profit before a SATS2 selling signal.

You have to plot this oscillator as a histogram and select the colors green and red.

You have now a completed SATS2 chart (figure 2.5). You can save it as a template to apply it on any new chart you want.

Figure 2.5: the completed SATS2 template

 

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