These charts are open to the public to illustrate the effectiveness of these indicators. The RSI Divergence, Cycle-Trap, Net-Lines and Range-Bust Reversals are designed to highlight changes in trend. When these signals occur in clusters, look for prices to reverse. The daily oil chart below shows the cluster of three signals occurring in four dats right at the June oil high, two RSI divergences plus the Cycle-Trap turned lower.
The weekly Crude Oil chart shows the pair of signals that occurred in July 2008 as prices came off that historic high, a Cycle-Trap reversal and a Net-Line sell indication. Last week, crude oil confirmed the sell issued weeks earlier on the daily chart with two more weekly signals, a Net-Line sell and a Cycle-Trap turn to go with the Range-Bust reversal that occured the earlier week. That’s three sell indications on weekly crude in a two week span. We’re looking for crude oil to return to that lower weekly Keltner channel that is currently at 41.06.
click chart to enlarge
click chart to enlarge