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Re-engineer 3xoptions.com Traffic Light Options indicators used
Mark Helwig is promoting a new advisory service called Traffic Light Options which relies on the confluence of 3 indicators. I have attached pictures of what the conditions are, and pictures of the 3 indicators used. They are all 3 "proprietary indicators"- TOP Momentum, TOP Cycle, and TOP IBA. I was hoping someone could have a look at the indicators used and help me identify similar indicators to use. I ideally would like to design a TOS scan to identify the setups. Any help would be appreciated. They are not selling the indicator at this time, only an advisory service. They are actively marketing this on webinars so you might want to signup and watch one. Looks fairly impressive.
They only trade at the money calls and puts- the theory is the traffic light signal not only signals a directional move, but also an increase in momentum thus finding fast hard moves. Here are pictures of the actual step by step process-
The first condition requires involves the indicator measuring momentum. They only consider continuing momentum, meaning momentum must continue to be positive, but to start heading higher again like in this picture. They don't try to anticipate the initial surge in momentum, just the continuation, meaning a pullback followed by continuation of momentum in the same direction.
Condition 2 is based on an indicator that measures cycles. Not sure what indicator it is so looking for something similar. It needs to be turning higher like this picture.
Condition 3 is an indicator that measures the relationship from open to close. Need help identifying a similar indicator. It needs to go from negative to less negative or better yet positive like this picture.It's displayed around a zero line like in picture.
They use the signals in a stoplight fashion so an actual signal looks like this when all 3 allign
I would guess the momentum is something like MACD or along those lines. Not sure what the cycle indicator is, or the interday bar analysis (IBA) indicator is. Thanks in advance for any and all help. Would love to see this coded as a TOS scan, but just identifying indicators would be a great start.
Can you help answer these questions from other members on NexusFi?
Has anybody been able to figure out what the 3 indicators are? I'm pretty sure he just added a fancy "proprietary indicator" name to an already existing common indicator. Any and all help is appreciated.
Here's my thoughts- #1- looks awfully MACD-esque to me, probably some slight twist to the standard. #2- I actually know this one, it's simply a difference between a simple and exponential moving average. #3- Look like short term momentum to me
