Instructions for using Buffy's B-line chart template in Ensign for Windows:

Here's a quick overview of the indicators included in the B-line chart template:

  1. The top color band is the trend of that time frame.
  2. The lower color bands are visual representations of the weighted moving average (WMA) on the price chart. (4/9/15/20)
  3. The cyan and red lines in the study window are short term stochastics (5/3/3).
  4. The yellow and green lines in the study window are the longer term stochastics (9/3/3).
  5. The white line in the study window is what we call the "B line," which indicates strength of trend something like ADX but always moves in the direction of the price trend (STOCH 35/10/1).
  6. The circles are warnings to tighten stops. If the circles are both one color in a trend, you can run a loose stop - 3-4 ticks (1.5 to 2 pts) or your preference.
  7. If one of the circles turns a different color, it is a warning to check things out. Look at the higher TF - if trend is strong there, then you can start using one of the WMA for your stop. If it isn't, look at the lower TF and see what is going on there and if any reason to tighten.
  8. If circles both change color against the trend, then I tighten stop to 1 or 2 ticks.
  9. The only time I might consider waving this rule is when there is an inside bar (either end can be even) per Mike Bruns. But stop will not be higher/lower than 2 Ticks off the high/low of previous bar before inside bar.
  10. When the "B line" is decked above 80 in the main TF and the next shorter TF, the up-trend is strong and might carry over to the higher TF (vice versa for "B line" below 20 in down trend). I have now seen this happen right up through the 15M on a strong downtrend.

NOTES:

  1. These indicators work in all time frames. You need to watch at least one TF higher and at least one lower. For example I trade the 75T but have the 30/50/150/300 up also. It works on minute charts also. The signals aren't as fast, which is true of all indicators, but it still gives.
  2. The divergences in the highs/lows of the stochastics can call a failed retest of high/low before price does quite often.
  3. When the B line is rising and the Stochastics fall to meet it and then turn up, it usually signals the start of another leg up. (2001-10-15/buffy-temp3 sig4.gif)
  4. When the B line is falling, and the Stochastics rise to meet it and then turn down again, it usually signals the start of another leg down.
  5. There were an equal number of people who did and didn't want a color band below the top one for the B line. To add this to your template right click on chart, click on draw tools, click on the alarm clock. The cursor will turn into a pencil when over the chart. Click on the B line. A properties window will come up. Make it exactly like the one posted (2001-10-15 Buffy-B line color band5.gif), click on ok. It should now be on the chart. Green is used for up and yellow for down to quickly know which band is which. If you want to add to templat3 or make another template with it included with other indicators on templat3, right click on chart. Click on template, click on SAVE, click on the template you wish to save it to.