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How to read the PulseScan "SWING VIX" Indicator

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The PulseScan SWING VIX Indicator
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TODAY'S PULSESCAN SWING VIX INDICATOR
 
                     
 
                   
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
                     
 
 
 
 

Rules for the PulseScan Swing VIX Indicator




The "Black" Line is your normal daily Stochastic Oscillator.
The "Yellow" Line is your Signal line.
The "Blue" Line is your Pulse line.
The "Red" Line is your Scan line.

The rules on the Black line is 100 = Extreme Overbought
0= Extreme Oversold

This is common with the normal Stochastic Oscillator function. However, as a stand alone it can be very misleading as it can stay overbought or oversold for an extended period and is prone to false signals.

The rules on the Yellow line is +.29 = Overbought
+.40 = Extreme Overbought
-.29 = Oversold
-.40 = Extreme Oversold
(This is your lead indicator)


The rules on the Blue and Red line is - they both plot the current position of the market and move in lag to the Yellow signal line. Remember, The Yellow line is the signal line that you follow for the current days reading. NOTE:   It is important to remember that the Yellow line often will lead the market 3-5 days out! So you need confirmation with the daily price action.  The PulseScan Swing Vix Indicator is an awsome stand alone indicator and will work even better when used with MACD, ADX, and price action. As a trend following indicator its the best I've ever seen. It has been able to predict major turning points in the Major indicies.

I think that you will find it most helpful when used in conjunction to what ever you use now.

 

MARKET TYPES

 

 

*"GAP-MOVE" ENTRY Days: These days are more common after a significant rally or sell-off they appear during a brief period of consolidation within the trend. Watch & Wait for the pullback toward Intra-Day SUPPORT/RESISTANCE to be confirmed before placing the "GAP-MOVE" LONG/SHORT ENTRY. Remember to watch the market for the whipsaw that is more common on these days especially when taking on the reversal.

*NOTE: Remember to use tight 4.25 - 7.25 pt stop-losses in the E-mini S&P 500 if you decide to "DAY TRADE" instead of taking the exact recommendation. Otherwise, use the recommended "Volatility Stop-loss". Also, watch for the GAP on the Open and trade the RVSL accordingly

*"BREAK-OUT" ENTRY Days: These days are less common but have a very high accuracy rate and are major trade signals. These types of breakouts tend to be very powerful moves and are typical within the current market trend. Usually, they occur while in a brief consolidation within the current trend after a strong move (but not always).

*"TRENDING" ENTRY Days: These are days were the market is expected to rally after a pullback. It should be noted that although it is also possible to get whipsawed on trending days as the market tends to run out of steam and consolidate intra-day these trades tend to yield substantial profits as the market begins to break out into higher highs as the trend begins to resume.

PulseScan "SWING VIX" Indicator