Day Trading Software

We are extremely excited about the discovery of the Accelerator Indicators, which is the result of many years of research into the intraday relationship between momentum and volume.

The Accelerator system will give 4 important pieces of information essential for all day traders: (1) It will identify the current intraday trend (2) Identify meaningful pullbacks to the trend (3) Show momentum/volume reversals early enough to take advantage of the move and (4) Show the low risk area to take entries and the best places to exit your positions.

Ok, let’s go to our chart and see the indicators we use to provide this information.

We have a 100 Tick Continuous chart of the emini S&P here. All indicators we use here have been developed by HigherLowDayTrading and are proprietary.

The Trend indicator we use for Accelerator is our HLMAVGTrend indicator, which is plotted with price data. It is made of 2 proprietary moving average trend lines. A fast line, which will paint yellow for uptrends and magenta for downtrends. And a slow line, which will paint light blue for an uptrend and red for downtrends.

Generally speaking, the best times to look for intraday trends are after 9 amCST and after lunch, usually around 1 p.m. However, trends can start any time there is new information in the market, so it is best to keep your eyes out for strong breakouts above or below the Trendlines.

We use a very simple definition of trend direction with these moving average trend lines: If the market is above the Slowtrendline, we consider the market to be in an uptrend. Conversely, if price is below the Slowtrendline, we are in a downtrend. If the market is in-between the two trendlines, we will consider this to be a consolidation phase and will look for the next breakout.

Here, we are in an Uptrend and will take trades to the Long side only.

After we have identified the trend, we will use our first Accelerator Indicator to spot pullbacks to the current trend. You can see it plotted here at the bottom of the chart. This indicator, which we named Accelerator 1, will paint blue when in the OS area and red when in the OB area.

Since we are in an uptrend, we want Accelerator 1 to go down into the OS area, turning blue. This pullback will identify the best area to begin looking for a signal back to the upside as we follow the trend.

The third set of indicators we will use are the all-important Volume/Momentum Indicators, Accelerator 2, which will highlight directional changes in the pullback area we just identified. You can see it here overlapped on Accelerator 1. The momentum portion of Accelerator #2 will paint light blue for Short Term momentum moving UP and red for Short term momentum moving Down. The Volume portion of Accelerator2 is shown here in light green.

It’s widely known that momentum is one of the few leading indicators that can be used to give an indication of future price movement. However, we have added a proprietary volume component to our momentum indicator which greatly increases its accuracy. Using long term volume analysis, we have found a way to tap into the trading action of larger traders, and use that information to follow along with their trade direction.

This indicator is an extremely exciting breakthrough that gives excellent reversing signals long before other indicators give a signal. In fact, the most difficult part of trading the Accelerator system is believing the reversing signals that occur. It’s amazing to see the indicators turn and the market follow that same direction a few minutes later.

Let’s take a closer look as our momentum and volume indicators go to work for us.

O.k., we have identified an UPTrend and have a substantial pullback with Accelerator 1. As momentum continues to move down, our volume indicator in green will begin to diverge, or pull back from the momentum indicator. This divergence is the key to the Accelerator system. This divergence occurs as large traders start putting on big positions in the opposite direction, which doesn’t show up in traditional volume analysis. This divergence is the first reversal signal we look for to take a position to the upside.

Secondly, we look for our momentum indicator to go from red to light blue and back to red. This signal, along with the volume divergence, is an excellent indication that a price reversal is imminent.

We now look to our entry trigger indicator, HLOscillator, plotted above the Accelerator indicators, to find the best possible fill. We wait until the indicator goes into the OS area and go long at the market here. Anywhere in the OS area is fine. We place a 3 point initial stop and the market moves in our favor.

We will now use Accelerator2 to help us find a profitable place to exit. As the market moves up, we hold our position until Volume and Momentum reach the OB area. Most times, the green volume indicator will diverge, or pull away from the OB area, as shown here…, as large traders start scaling out of their positions, which offers us an excellent place to exit. However, divergence will not always be present on every top or bottom. Therefore, once the volume and momentum indicators have reached the OB area, and the market has moved a few points in our favor, we look to exit as HLOscillator goes into OB area. Here, we took a nice 4 point profit.

We continue to look for pullbacks to the Uptrend and follow the same entry and exit procedures as the market continues to move up. Here, we have two other nice moves to the upside, with excellent entry signals. We capture 4 points for the first signal, 4.50points for the second, and 7.00 pts for the third, for a total of 15.50 points for these three signals.

Its important to note here that not all swings will have divergence with the volume and momentum indicators. You may only get divergence from only one of the indicators or none at all. It is usually best to wait for the strongest setups with double divergence before entering a position. That will help to reduce the number of smaller profit trades you take and should help your overall profitability.

For a downtrend market, we will simply reverse all entry and exit directions given for an uptrend market.

We advise only taking trades with the trend, as these trades typically will produce the largest moves. However, as the market goes into consolidation, price will swing back and forth through our 2 Trend Indicators. If you are an aggressive trader, you can use the same entry and exit procedures to take counter trend positions. However, look for strong Volume and momentum divergence before entering positions.

Another intraday signal we watch for using the Accelerator indicators, is a test of the crossing of our 2 Trend Indicators, which we see here… If the market moves down to test this area and reverses, look to enter the first pullback with Accelerator1 and HLOscillator. You will want to take a long term view of this trade and hold this position for 3 swings up before exiting. These do not occur everyday, but when the do occur, they often offer a large intraday profit for your trading account.

So there you have it. Our Accelerator Indicators and System offers the best intraday reversal signals we have ever developed, using hidden information from the movement of large traders who have the ability to move markets with their trades. We simply have to follow along, taking low risk, high profit potential trades throughout the trading day.

If you have any questions on HLAccelerator Indicator and System, you can contact us through our website. www.higher-low-day-trading.com.

Thanks again for viewing this video and best of luck trading.


Return from Day Trading Software - HLAccelerator to Day Trading Systems