Explanations for the Signals and Strength Indicator
The SSI is a proprietary indicator based exclusively on the eSignal platform.
The Yellow line measures the Strength for any instrument, with values from 0 to 100. Areas with Strength greater than 75 are considered overbought, with less than 25 oversold and neutral in between.
Trading Signals produced are depicted with arrows and are green for longs and red for short entries. There are signals of three risk levels, low, medium and high according to the Strength level when they are triggered. They are shown with three different color tones.
Dark green arrows indicate strong buy signals, while dark red arrows indicate strong sell signals. Lighter colored arrows are confirmation signals or signals to add, for large portfolios that use multiple entry points.
The best reward to risk ratio trades are when consecutive bars show dark colored signals.
For swing trades the daily timeframe is used. SSI also works well with 30 minutes timeframe for intraday trades and 5 minutes for scalp trades, but you need to install the SSI on your computer for those.
Experienced traders are also using tick, volume, range or price change intervals to suit their own trading profile.
Finally the best practice is to use the SSI live within a screener with hundreds of instruments being automatically sorted every few seconds. This way the best selections for long or short trades are picked continuously with a high success rate.
If you wish to see the SSI_GemsBot indicator live, where it is at its best, let’s arrange a Skype presentation where all your questions will be answered.