Smart 123

The Smart123 for NT8 is a powerful trend and Price Action Analysis tool that is simple, elegant and statistically significant based on our testing. It tracks Price Action Trend counts in both up and down directions according to the input specifications for structure. For more on this, see the Theory section below.  Smart 123 can be used on any time frame and bar type. Below are some instructions for setting the tool up and settings.  Additionally you will find some powerful statistics associated with this tool based on our testing.

Theory

We have been observing how market structure represents itself on a chart based starting from the notion of what might be called a price action trap on a chart.  Originally, or the most strict definition of this is where the market is not allowed to violate any prior structure as it trends in a given direction. This gives a count of 1-2-3.  What you will see is 3 higher or lower consecutive higher highs or lower lows. They could also be equal.  This is most easily seen on a strcutured bar like the Smart Super Renko bar (see below):

In the above example you have intact 1-2-3 structures on the left. In theory, if you have counts going in both directions at the same time, then it is not nearly as likely to be trending as when it is not (counts only in one direction).  This area of the chart follows where you see the sloping magenta lines going higher.  At that point all counts are up.

When a market has no full count against its movement, theoretically more time frames are more inclined to join in the trend and the result is range expansion.  Ultimately range expansion is what we trade for.

Smart123 makes it possible to see these structures and to know when you do not theoretically have opposing time frames based on the underlying theory we’ve been discussing.

The manual covers settings, theory and applications with Smart TradeMarkers statistics AND Shark Indicators Bloodhound code and advanced theory.

Also look in the related products section below or Smart Patterns Systems or other categories from the drop down menu above that include or can be combined with this great tool to create a comprehensive strategy and for special pricing.

To Learn More, see the trading system design webinar below we did when we first released and showed Smart 123 in action.

As always, as if you need assistance we are here to help.