# CRTRADERSIGNALX

Contenidos

- 1 CRTRADERSIGNALX
- 1.1 SIGNALX
- 1.2 Type of Representation System: Japanese Candles or Heikin-Ashi Candles
- 1.3 The Crossing of three (3) Exponential Moving Averages (EMA)
- 1.4 Representation of the Crossing of three (3) EMAS in the SIGNALX Graph
- 1.5 RSI or Relative Strength Index of fourteen (14) periods
- 1.6 Stochastic or STOCH Index of fourteen (14) periods
- 1.7 MACD of twelve (12) Periods
- 1.8 Combination of Indicators
- 1.9 Rules of Entry and Exit of the Market
- 1.10 Representation of the Entry and Exit Rules in the SIGNALX Graph
- 1.11 GOLDEN RULES

- 2 DISCLAIMER

**CRTRADERSIGNALX **is a tool for the Prediction of the High Probability Trend. It is used to **Predict** the **Movement **of any **CRYPTOCURRENCY** of the **Stock Market**.

The **Crtradersignalx **tool is based on the signals generated by the **SIGNALX** Prediction Method. The fundamental advantage of **Crtradersignalx** is that it is applicable to any **INDEX** and **STOCK **of the **Stock Market**.

**Crtradersignalx** can be used in any time frame. **Crtradersignalx** generates predictions of the movement of the price with high probability.

**SIGNALX**

The **SIGNALX** method is based on the instantaneous calculation of Technical Trend Indicators and Price Levels based on Pivot Levels, Support Levels and Resistance Levels. **SIGNALX **method generates the signals based on the following Technical Indicators:

**Type of Representation System: Japanese Candles or Heikin-Ashi Candles,****The crossing of three Exponential Moving Averages (EMA) of 14 periods, 20 periods and 40 periods,****RSI or Relative Strength Index of 14 periods,****Stochastic (STOCH) of 14 periods,****MACD of 12 periods.**

**Type of Representation System: Japanese Candles or Heikin-Ashi Candles**

The following graph shows the Movement of the price in a Time Frame of 1h for the Stock **Bitcoin of the Stock Exchange Market.**

We have selected among the different Representation System of the Price Movement the one corresponding to Japanese Candles also known as Candlestticks.

The **SIGNALX** Trading System can also be used with **Heikin-Ashi** candles. Remember, in this example, each candle represents the Price Movement for a period of one (1) hour.

The candles or Candlesticks of **GREEN** color, represent bullish movements of price and the candles or Candlesticks of **RED** color, represent bearish movements of the price of the Stock.

**The Crossing of three (3) Exponential Moving Averages (EMA)**

The first indicator of the **SIGNALX** System is formed by three (3) Exponential Moving Averages of periods 14, 20 and 40, respectively. This indicator is very powerful. It informs us if the Market is bullish or bearish. The indications that we must interpret of the crosses are the following:

**Ascending EMAS Crossing**. It means that the Market is Bullish,**Descending EMAS Crossing**. It means that the Market is Bearish,**Horizontal or Sideway EMAS Crossing**. It means that the Market is Lateral.

**Representation of the Crossing of three (3) EMAS in the SIGNALX Graph**

In the attached graph we have represented with a letter “**C**” inside a **BLUE CIRCLE**, the crossing points of the three (3) EMAS for the DAX index within a time frame of 1 h.

We have represented with a **GREEN UP ARROW,** the sections corresponding to **BULLISH CROSSINGS**. We represent with a **RED DOWN ARROW,** the sections corresponding to **BEARISH CROSSINGS**.

Remember, that in low intensity sideways markets, it is preferable not to enter the market and wait for a clear trend to be declared, be it bullish or bearish. We must always operate with the Trend.

The Trend is our friend. Operating against the Market Trend inexorably means losing our investment.

**RSI or Relative Strength Index of fourteen (14) periods**

The **RSI indicator or Relative Strength Index**, is a Relative Strength Index, as its name indicates. This Technical Indicator is an oscillator type and measures the force of the price movement. Its objective is ultimately to measure the speed of the Price Movement whether it goes up or it goes down, in a given Time Frame.

**RSI or Relative Strength Index Formulation of fourteen (14) periods**

This indicator was developed by the analyst J. Welles Wilder who presented it in a book called “** New Concepts in Technical Trading in 1978**“. The

**RSI or Relative Strength Index**indicator of fourteen (14) periods is defined by the following formulas:

**RSI = 100 – (100 / (1 + RS))****Average Profit = Total Profit / Number of Periods****Average Loss = Total Loss / Number of Periods****First RS = Average Gain / Average Loss****RS = A / B****A = (Previous Average Gain * 13 + Current Gain) / 14****B = (Previous Average Loss * 13 + Current Loss) / 14**

The **RSI or Relative Strength** Index is graphically represented by a vertical scale between zero (0) and one hundred (100). When the value of the indicator is above the value seventy (70), it means that the price of the Stock is **OVERBOUGHT**. In the case where the value of the Indicator is below thirty (30), it means that the price of the Stock is **OVERSOLD**.

**RSI Representation in the SIGNALX Graph**

On the previous graphic, we mark with a rectangle of **LIGHT RED** color the areas corresponding to **OVERSOLD**. We represent with a **LIGHT GREEN** rectangle the areas corresponding to **OVERBOUGHT**.

Within each rectangle we have included the letters “**SV**” within a **RED CIRCLE**, to name the areas corresponding to **OVERSOLD**. We include the letters “**SC**” in a **GREEN CIRCLE**, to name the areas corresponding to **OVERBOUGHT**.

In this way, we obtain the attached graph in which the indicators are overlapping: **Crossing of three (3) EMAS and the RSI.**

**Stochastic or STOCH Index of fourteen (14) periods**

The **Stochastic indicator or STOCH Index**, is an oscillator type indicator was developed in the 50s by ** George C. Lane** and is a technical indicator of market momentum that shows the relationship between the closing price in each time frame with respect to the range between the maximum price and the minimum price, during a specific set of periods.

**Stochastic Formulation or STOCH of fourteen (14) periods**

The Stochastic or STOCH indicator of fourteen (14) periods is defined by the following formulas:

**% K = (Current close-Minimum lowest) / (Maximum highest-Lowest below) x 100****% D = Simple moving average of 3 periods of% K.**

Where:

**Lowest Minimum**: It is the lowest value of the set of periods analyzed.**Highest Maximum**: It is the highest value of the set of periods analyzed.**% K**is multiplied by 100 in order to obtain the percentage value.

The **Stochastic or STOCH index** of fourteen (14) periods is represented graphically by a vertical scale between zero (0) and one hundred (100). When the value of the indicator is above the eighty (80) value, it means that the price of the Stock is **OVERBOUGHT**. In the case where the value of the Indicator is below twenty (20), it means that the price of the Stock is **OVERSOLD.**

**STOCH representation in the SIGNALX Graph**

On the previous graphic, we mark with a rectangle of **LIGHT RED** color the areas corresponding to **OVERSOLD**. We represent with a **LIGHT GREEN** rectangle the areas corresponding to **OVERBOUGHT**.

Within each rectangle we have included the letters “**SV**” within a **RED CIRCLE**, to name the areas corresponding to **OVERSOLD**. We include the letters “**SC**” in a **GREEN CIRCLE**, to name the areas corresponding to **OVERBOUGHT**.

In this way we obtain the attached graph in which the indicators are overlapping: C**rossing three (3) EMAS, the RSI and the STOCH.**

**MACD of twelve (12) Periods**

The Indicator **MACD** is defined as the difference between two (2) exponential moving averages (EMA) of different periods. The first **EMA** is calculated with twelve (12) periods, being more sensitive to short-term price movements, while the second **EMA** is calculated with twenty-six (26) periods, being more sensitive to medium-term price movements.

**MACD formulation of twelve (12) periods**

The MACD indicator of twelve (12) periods is defined by the following formulas:

**MACD (12,26) = EMA (12) -EMA (26)**

The **MACD** indicator has a second component called **SIGNAL**. This corresponds to the exponential moving average of the **MACD** of twelve (12) periods used for this moving average nine (9) periods, the formula being the following:

**SIGNAL = EMA (9, MACD (12.26))**

The last component of this indicator is the **MACD Histogram**, which corresponds to the difference between the **MACD** and the **SIGNAL**, the formula being the following:

**Histogram = MACD (12,26) – SIGNAL**

When the **MACD** line, represented by a **GREEN** line, crosses over the line of the **SIGNAL**, represented by a **RED** line, a **BUY** indication is produced.

When the **MACD** line, represented by a **GREEN** line, crosses below the line of the **SIGNAL**, represented by a **RED** line, a **SELL** indication is produced.

One way to confirm the **MACD** indication is to wait for the **MACD** line to cross “**LINE** **0**” or **WATER LINE **up, which would confirm the **BUY** indication, or down, which would confirm the **SELL** indication.

**MACD representation in the SIGNALX Graph**

On the previous graphic, we mark with a rectangle of **LIGHT RED** color the areas corresponding to **SELL** indication and with a **LIGHT GREEN** rectangle the areas corresponding to **BUY** Indication.

Inside each rectangle we have included the letter “**V**” inside a **RED CIRCLE**, to name the areas corresponding to **SELL** Indication. We include the letters “**C**” in a **GREEN CIRCLE**, to name the areas corresponding to **BUY** Indication.

In this way we obtain the attached graph in which the indicators are overlapping: **Crossing three (3) EMAS, the RSI, the STOCH and the MACD.**

**Combination of Indicators**

Once the different areas determined in the previous sections have been analyzed, we proceed to combine the results obtained in order to establish the **SIGNALX** chart that is included below.

**Representation of the Combination of Indicators in the SIGNALX Graph**

On the previous graphic, we mark with a rectangle of **LIGHT RED** color the areas corresponding to **SELL **indication. We mark with a **LIGHT GREEN** rectangle the areas corresponding to **BUY** indication.

Inside each rectangle we have included the letter “**V**” inside a **RED CIRCLE**, to name the areas corresponding to **SELL** Indication. The letter “**C**” is included in a **GREEN CIRCLE**, to name the areas corresponding to **BUY** indication.

In this way we obtain the attached **SIGNALX** graphic.

**Rules of Entry and Exit of the Market**

Once the **SIGNALX** chart is represented, we proceed to implement our **Entry and Exit Rules** included in our **Trading System** on the chart.

**Representation of the Entry and Exit Rules in the SIGNALX Graph**

Within the **SIGNALX** Chart we represent with the letter “**B**” inside a **GREEN CIRCLE**, the instant in which our system indicates the **BUY** operation.

We represent with the letter “**S**” inside a **RED CIRCLE**, the instant in which our system indicates the **SELL** operation.

We represent with the letter “**C**” inside a **BLACK CIRCLE**, the instant in which our system indicates the **CLOSURE** of operation.

Between each indication of **BUY** and **CLOSURE** a **GREEN** **LINE** color is drawn. Analogously, between each **SELL** and **CLOSURE** indication a **RED LINE** color is drawn.

**GOLDEN RULES**

- Represents the
**SIGNALX**chart before starting the**Trading Day**with a**Time Frame**of 1h and 4h. - Represent on the chart your
**Rules of Entry and Exit**. - Never operate against the Trend.
- Never operate with more than 5% Risk.
- If your operations do not evolve properly do not blind yourself. Close them immediately.
- Operates exclusively in
**Opportunity Windows**.

**DISCLAIMER**

This website and its content is intended to technically and psychologically train new traders. Our Content is aimed at those people interested in becoming **PROFESSIONAL TRADERS**.

The concepts, themes, articles, books, videos, etc. provided on this website is considered educational material. All the information included in the web has only informative character and exclusively educational purposes. The user of this website is responsible for the use of the information contained therein.

Professional Traders recommends the advice of a qualified **Stock Market Professional** before making any investment. The user must fully understand all the risks inherent in the **Trading Process** before investing.