MTS FreeReport

7/29/2019 MTS FreeReport

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Micro Toolsoft, Inc.

FREE Report

Version 3.1

The fine Art & Science of dynamically structured software trading tools specifically designed for theprofessional traders to supplement their researched trading plans.



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Copyright Micro Toolsoft, Inc. - - 2 -

Copyright 2002+ Micro Toolsoft, Inc.

ALL Rights Reserved. No part of this publication may be reproduced, stored

in retrieval system, or transmitted, in any form (including digital formats)

or by any means, electronic, mechanical, photocopying, scanning,

recording or otherwise, without the prior written permission of the author.

___________________

Note: Third party brands and names are property of their respective owners.


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DisclaimerThere is a very high degree of risk in trading. Furthermore, past results are

not indicative of future returns. The company, the author, the publisher, and

their affiliates make no claim to the future effectiveness of the tools,

methods and techniques described in this manual. Examples and illustrations

in this manual are for purely educational purposes only. This is not a

solicitation of any order to buy or sell.

The NFA statement: HYPOTHETICAL OR SIMULATED PEFORMANCE RESULTS HAVE

CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD,SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES

HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER

COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK

OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE

FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HIDSIGHT. NO

RESPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE

PROFITS OR LOSSESS SIMILAR TO THOSE SHOWN.

Please note all terms and conditions plus disclaimers apply including those

that are posted on our website; please read them to agree prior to using any

indicators or trading frameworks.

Legal Notice: Micro Toolsoft, Inc., is not an investment advisory service,

nor a registered investment advisor or broker-dealer and does not provide,

tell or suggest which securities customers should buy or sell for themselves.

Customers should always check with their licensed financial advisor and their

tax advisor to determine the suitability of any investment.

The product and manuals are offered solely for educational and informational

purposes. No trading or investment advice of any kind is offered, and nothing

written should be construed as trading or investment advice or a trading or

investment recommendation of any kind.

There is a high degree of risk as well as reward in trading. Therefore, it

should not be assumed that the methods, techniques, trading frameworks, or

indicators presented here will be profitable or that they will not result in

losses. Past results are not necessarily indicative of future results.

Examples presented in this manual and on MTS web sites are for illustrative

and educational purposes only. Any techniques showcased are not solicitations

of any order to buy or sell. The authors, the publisher, the company and all

their affiliates assume no responsibility for your trading results.



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Table of Contents

1. Acknowledgements 5

2. MTS Dynamic Day Trading Framework 6

3. DTF Introduction and Benefits 7

4. Dynamic Day Trading Framework Defined 8

5. Examples of DTF Trading Techniques 10

6. MTS Dynamic FIB Trading Framework 23

7. FTF Introduction and Benefits 24

8. Examples of FTF Trading Techniques 25

9. MTS Super TrendEx Indicator 31

10. Super TrendEx Introduction & Benefits 32

11. Examples of Super TrendEx Trading Techniques 33

12. MTS New Trend-GO Indicator 35

13. Trend-GO Introduction & Benefits 36

14. Examples of Trend-GO Trading Techniques 37


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1.0 Acknowledgements

Many charts shown are with permission and curtsey of TradeStation Corporation the premiere &leading industry trading platform.

Figure A-1, TradeStation copyright permission notice


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1.0 Introduction

You can increase your winning trades by precision trade entry timing and controllingand managing your loses and at appropriate times even staying on the side lines. MTSDynamic Trading Frameworks are like AWACS (Airborne Warning And Control System)that dynamically paint the entire price action battle field for your successful trading

plans.

1.1 Benefits of DTF Framework Trading:

Breakouts and Breakdowns from user designed Dynamic Box (DB)

Breakouts and Breakdowns from New High and New Lows respectively

Apply your Trading setups at the day traders pivot levels

Identification of dynamic profit target levels

Reversals and fades from dynamic intra-day high and low levels

Reversals from DB Box Top Line and Box Bottom Line

Avoid choppy sideways price action inside the Dynamic Box

Failed signals from various dynamic levels

Zone Play mode visual trend color change price action transitions

Instantly identify if the price action is up, down or sideways

Instantly identify morning gap, size and gap closure target levels

Construct multiple equity different color based Heat Maps

Instant comparison of target equity with favorite Index

Apply dynamic risk control and risk management at various levels

Instantly compare intra-day range with yesterdays range Instantly identify and place protective stops at various dynamic levels

Instantly identify and implement trailing stops at various dynamic levels


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1.2 Brief Summary of the DTF Structure

The DTF software program is designed to continuously track on a real-time basisthe intra-day highs, lows and dynamic box lines for each trading day. Basicallythe software divides the daily bar or the intra-day range into three distinct areascalled 1) Dynamic Box or the Midfield, 2) Forward section and the 3) Backfieldsection.

The Dynamic Day Trading Framework (DTF) Structure: The intra-dayDynamic Day Trading Framework structure comprises of the followingprofessional trader relevant components listed in Table-1.0 below. These DTFstructure components details are further explained in the DTF manual.

Table 1.0

Dynamic Day Trading Framework StructureComponent Definition

DHL Dynamic High LineDLL Dynamic Low LineBTL Dynamic Box Top LineBBL Dynamic Box Bottom LineYCL Yesterdays Close Line

DOL Days Open LineDB Dynamic Box, Midfield or simply BoxCB DTF price action Control BoundaryForward zone Section between DHL and BTL lines

Backfield zone Section between DLL and BBL linesMidfield zone Section between BTL and BBL lines or DBYHL Yesterdays High LineYLL Yesterdays Low LineYTL Yesterdays DB Top LineYBL Yesterdays DB Bottom Line

Table 1.0 Dynamic Day Trading Framework Structure component definitions.


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Figure 1.0 Dynamic Day Trading Framework applied to a Candlestick Chart.


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Examples of DTF Trading Techniques:

Dynamic Trading Framework new Formations(Find further details in the product manual)

DTF Fundamental Formations & Trading Relevance

No. DTF Fundamental Formation Typical Trading Style

1 Single Line Breakout Very Bullish, Volatile Openings + Momentum follow thru

2 Single Line Breakdown Very Bearish, Volatile Openings + Momentum follow thru

3 Double Line Breakout Morning wiggle, DB consolidation & breakout

4 Double Line Breakdown Morning wiggle, DB consolidation & breakdown

5 Triple Line Breakout Price action consolidation from yesterday & breakout

6 Triple Line Breakdown Price action consolidation from yesterday & breakdown

7 Gap-Up Continuation Breakout Good News & more good news Buying + short covering

8 Gap-Down Continuation Breakdown Bad News & more bad news selling

9 Gap-Up Reversal Breakdown Good News followed by professional fading

10 Gap-Down Reversal Breakout Bad News followed by professional fading

11 All-in-the-Box Breakout Multi price-level congestion Breakout

12 All-in-the-Box Breakdown Multi price-level congestion Breakdown

General MTS Trading Framework setup entry philosophy:

First correctly configure and apply the MTS Trading Framework (e.g.; DTF, FTF) on your trading screen charts.

Wait for the price action to interact or be in close proximity of any one of the Trading Framework structure levels.For example for DTF PRO Trading Framework, look at BTL, BBL, DHL, DLL, YCL, DOL, Daily Pivot, S1, S2, S3,R1, R2 or R3 levels.

As the price action approaches these levels look for basic technical analyses formations, patterns, support,resistance, reversals, retrenchments, and target and risk management levels.

Take a position according to the widely practiced or your own rules for entries.

Immediately apply your position protective stops based on the dynamic levels identified by the TradingFramework structure.


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Trend change color transitions(reverse rules for longs)

Turn ON the Zone Play mode in the DTF indicator & PaintBar study

Look for potential trend change inflection points when Down-trend (green bars) reverses and enters the DynamicBox (yellow bars)

Consider taking a position when the bar turns red or place a sell-stop ahead of the move when confirmed by yourother indicators.

Place protective stops just above BTL or any other appropriate DTF structure level of your choice.


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Breakouts and Breakdowns from the Dynamic Box (reverse rules for shorts)

Turn ON the Zone Play mode in the DTF indicator & PaintBar study

Do your research and select the equity experiencing high momentum, high volume and range expansion due toearning, news, growth prospects, analyst upgrades/downgrades etc.

Based on your trading style and trading market setup a 5, 10 or 15-minute DB.

Take a position when the bar breaks out above the BTL consistent with additional guidelines provided in the DTF

manual that comes with the purchased DTF indicator package.

Place protective stops just below BBL or any other appropriate DTF structure level of your choice.


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New High and New Low Breakouts and Breakdowns(reverse rules for shorts)

Do your research and select the equity experiencing high momentum, high volume and range expansion due toearning, news, growth prospects, analyst upgrades/downgrades etc.

Look for 5 - 20+ bar consolidation bases or trend bar color transition through the DB.

Consider taking a position when the price action makes a new high (Rising DHL line) and as confirmed by yourindicators. You may also set an alert when DHL line makes a new high.

Place protective stops just below the breakout bar or any other appropriate DTF structure level of your choice.


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Actives, % Gainers/Losers & $Gainers/Losers Screen

setup (reverse rules for shorts)

Do your research and select the equity in the Actives, %Gainers/Losers & $Gainers/Losers Screensexperiencing high momentum, high volume and potential for further range expansion due to earning, news,growth prospects, analyst upgrades/downgrades etc.

Setup your screen with Times & Sales, Hot Lists, daily and intra-day charts with DTF and your favorite indicators.See sample screen image shown below.

Inter-connect the Hot List symbols with the intra-day, daily and volume charts click through the Hot List symbolsand focus on equities exhibiting above mentioned attributes. (Be careful with equities showing very largeovernight gaps or very low volume and be prepared to fade them if they drop below their DB).


Take a position when the bar breaks out above the BTL consistent with additional guidelines provided in the DTFmanual that comes with the purchased DTF indicator package.



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Actives, %Gainers/Losers & $Gainers/Losers Screen setup


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Capitalizing on Failed signals(reverse rules for shorts)

Many times the price action will reverse at or near a key DTF structure level such as the BTL. This will also beflagged by DTF Zone Play mode color change.

As soon as the green bar changes back to yellow bar along with confirmation from market internals (High TICKreadings, rising TRIN etc.) and your indicators consider fading the failed signal.

Conservative traders can wait until the failed price action falls below the DB as indicated by a red bar.

Place protective stops just above the DHL line or any other appropriate DTF structure level of your choice.

DB Downside Reversal

DB Downside Reversal


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Dynamic Box Reversals(reverse rules for shorts)

Select an equity or Index that is showing extremely positive price action momentum due to news, earnings,analyst upgrade etc. Now lets say you missed out on the early morning move and would still like to participateafter the slow corrective price action completes and reverses after the mid-day session.

Wait for the price action to reach the BTL line. If several bars turn yellow inside the DB then consider fading orwaiting until the bars once again turn green above the BTL line.

If and when the BTL line becomes a support level or when the next green bar takes out the previous green bar

high then consider opening a position when also confirmed by market internals and your other indicators.

Place protective stops just below the BBL line or any other appropriate DTF structure level of your choice.


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Multiple Charts Screen from Researched Equities setup(reverse rules for Shorts)

Do your research and select the equities experiencing best momentum, high volume and potential for furtherrange expansion due to earning, news, growth prospects, analyst upgrades/downgrades etc.

From your research select 4 8 equities that are also flagged by your pattern trading software as potentialtrading setups. Place these equities in multiple chart screens with DTF indicator turned ON. See samplemulti-chart screen shown below.


Take a position when the bar breaks out above the BTL consistent with additional guidelines provided in theDTF manual that comes with the purchased DTF indicator package.



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Multiple Charts Screen based on Researched Equities


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Top %Gainers/Losers from the Radar Screen setup(reverse rules for shorts)

This technique is for professional traders that like to trade from their daily fixed equity lists such Nasdaq-100, SP-100, SP-500, high Relative strength list, High growth rate list, High EPS list or Short list etc.

Setup your radar screen with your above mentioned daily fixed equity list and add the %Change indicator. Setthe radar screen sort for highest percent movers.

Add 4 8 charts with DTF along with a volume and daily chart. Interlink these charts with the radar screensymbols.


As the market opens you will see various equities jump up and down the radar screen list. Examine theseequities and observe their daily volume and any favorable daily chart setup. Look for the opening volume to begreater than 20 30% of the 50 day volume average. Be cautious with equities showing very large openinggaps.

Go through this quick visual filtering process and select a handful of equities meeting your criteria. As soon asyour selected equity price action breaks above the BTL line consider opening a position when confirmed by yourother indicators. Remember to exercise caution and filter out equities with thin volume, low price or very largeopening gaps.

Place protective stops just below BBL or any other trading relevant DTF structure level of your choice.


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Top Percent Gainers/Losers from Radar Screen List


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Multiple Equity/Index Charts Heat Map Screen


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MTS Dynamic FIB Trading Framework:

The RADAR for spotting Reversals and Trend Transitions


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2.0 Introduction

The Dynamic FIB Trading Framework:

The Dynamic FIB Trading Framework (FTF) is a trading framework designed for theprofessional, institutional and experienced Fibonacci style traders. The FTF Framework

trading tool simply observes the unfolding price-action and translates it into dynamic

intra-day range Fibonacci levels. The Dynamic FTF Trading Framework eliminates the

need for manual, slow, cumbersome and sometime error prone static Fibonaccimeasurement tools. The FTF framework tool dynamically charts and adjusts the

Fibonacci Retrenchment and Retracement levels in real-time for effective trade

execution. The FTF trading framework provides information involving support andresistance levels, reversal levels and trade pattern setup plays.

Furthermore, it also provides trade timing precision by identifying trade management

levels, risk management levels and potential profit target levels for overall successfulprofessional trading.

In summary, FIB Trading Framework (FTF) is a unique and an extremely valuable

Dynamic Intra-day Range based Trading Framework. FTF is superior in scope

compared to the widely used but limited-value arbitrary pivot High/Low single

measurement calculations using manual Fibonacci platform tools.

2.1 Benefits of FTF Framework Trading:

Dynamically applies Fibonacci nodes to intra-day price action range

No need to use cumbersome error prone manual platform FIB tools

Identifies all widely used retrenchment nodes based reversal plays

Identifies trend change transitions by Zone Play mode color bars

Identifies Fibonacci based trailing stop and target levels


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Short Trend Transition Plays:

Figure 2-1 shows a FIB Trading Framework Short Trend Transition Play signal. ( VCD Pro &Trendex indicators shown sold separately)


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FIB Trading Framework Trend Transition

Plays:

Figure 2-2 shows a FIB Trading Framework Short Trend Transition Plays signal.


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Explosive Gone Ballistic LONG TrendTransitions:

Figure 2-3. Shows a FIB Trading Framework Gone Ballistic Long Transition Play signal when asingle bar crosses from below the FIB Box (FB) to above the FB. (VCD Pro & Trendex indicatorsshown sold separately)


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Explosive Bunker Buster SHORT TrendTransitions:

Figure 2-4 shows a FIB Trading Framework Bunker Buster Short Play Transition signal when asingle bar crosses from above the FIB Box (FB) tobelow the FB.. (VCD Pro & Trendex indicatorsshown sold separately)


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Figure 2-5shows a FIB Football Quarterback N1 Plays. Note: stops are trailed only one FIBlevel below the current price action after it thrusts up into a new higher FIB level.


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FIB Trading Framework with Floor TradersPivots Turned On:

Figure 2-6Shows a FIB Trading Framework with Floor Traders Pivots with Zone Play mode ONduring FED-day. (VCD Pro & Super Trendex indicators shown sold separately)


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MTS Super TrendEx Indicator:

Filters out sideways chop and flags start of major Trends


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3.0 Super TrendEX Introduction

The powerful new but simple to use Super TrendEX indicator builds upon the classicTrendEX indicator algorithm and add-on many new superior features and functionality bymathematically resolving the multi-line DMI/ADX curve into a powerful single line indicator.Super Trendex indicator not only provides most of the functionality of the classic TrendEXindicator, but it also provides many more valuable new features. Some of these newfeatures are listed below:

Dual user configurable Filter Lines to filter out most side ways price action

A reasonably close and practical approximation of the ADX curve

The ability to effectively simulate the uni-directional ADX curve in both directions. Byclearly representing Super TrendEX signals for up trending markets and down trendingmarkets in their proper orientation.

The ability to clearly differentiate between potentially strong long term trend start signalsfrom medium duration trend signals or plain trend change signals.

The flexibility to manually set the threshold Filter signal lines to match the dynamics of agiven market or personal trading style of a professional trader.

Capability to show early divergences between Super TrendEX signal line andcorresponding price action that can assist in identifying tops and bottoms.

Ability to match classic TrendEX sensitivity settings with corresponding SuperTrendEX period settings.

A Factor variable that allows professional traders to tweak its value to better match thedynamics of some specific markets conditions or trading styles.

3.1 Benefits of Super TrendEx:

Efficiently replaces multi-line DMI/ADX with a single line indicator

Filters out most price-action Chop and identifies major Trends

Algorithm closely matches ADX curve and trend direction

Alerts to early trend change divergences with underlying price action


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Figure 3-1: Super Trendex Indicator study showing Channel Squeeze followed by a

powerful Rising Star formation.


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Figure 3-2: Super Trendex Indicator study showing an All-in-the-Box formation

resolving into a powerful Rising Star formation plus a Fading top formation.


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MTS Brand New Trend-GO Indicator:

Its Locked & Loaded to capture Trends that cannot escape


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4.0 Trend-GO (TGO) IndicatorIntroduction

TGO is a new robust indicator that integrates several MTS indicators to predict potentialtrend start scenarios. For added confirmation, TGO incorporates Turbo MACD, VCD

Pro, moving averages crossover, ADX attributes and a user adjustable filter line. TGOindicator is designed to spot start of new trends such that no valid trends can escape itsradar. TGO also provides user adjustable filter line to filter out false signals.Furthermore, TGO shows both the VCD short term volatility burst moves as well as thesustained momentum based trends as differentiated by the lower signal line. Finally, theTGO also identifies counter moves when momentum starts to slow down or trend startsto lose steam.

Plans are to launch Tradestation version of TGO indicator soon (priced at $495.00). Thelist price for AVGBand is $250.00. Interested parties may contact us [email protected] to purchase.

4.1 Benefits of TGO Indicator:

Identifies start of trends, short term volatility bursts, re-continuation of major

trends and fading opportunities. Allows user configurable Filter line settings to filter out false moves

Paints Turbo MACD signal line to confirm start of healthy trends

Paints VCD Pro signal line to highlight volatility moves

Changes signal line color based on user moving average crossovers

Paints ADX based rising momentum histogram

Highlights starting of fading reversals or possible profit target areas


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Brand NEW TGO Indicator:

Figure 4-1: TGO Indicator study showing robust features all included in one single

dynamic indicator. DTF trading framework sold separately.


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Figure 4-2: TGO Indicator study showing solid downtrend with robust features that are

all integrated into a single dynamic indicator. DTF trading framework sold separately.


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Figure 4-3: TGO Indicator study showing uptrend & downtrend moves. TGO comes with

robust features that are all integrated into a single dynamic indicator package. DTF

trading framework sold separately.


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Figure 4-4: TGO Indicator 60-minute study showing uptrend & downtrend moves. TGO

comes with robust features that are all integrated into a single dynamic indicatorpackage. Please note the shown VCD Pro & AVGBand indicators are sold separately.


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Figure 4-5: TGO Indicator 60-minute ER2 study showing uptrend & downtrend moves.

TGO comes with robust features that are all integrated into a single dynamic indicator

package. Please note the shown VCD Pro & AVGBand indicators are sold separately.


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comes with robust features that are all integrated into a single dynamic indicator

package. TGO clearly filters out sideways & choppy moves and may signal a developing

move if it materializes. Please note the shown VCD Pro & AVGBand indicators are sold

separately.


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package. TGO clearly filters out sideways & choppy moves and may signal an upcoming

move (up/down?) if it materializes. Please note the shown VCD Pro & AVGBand

indicators are sold separately.


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package. TGO clearly filters out sideways & choppy moves plus moves without volatility

or solid momentum. Please note the shown VCD Pro & AVGBand indicators are sold

separately.


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Figure 4-9: TGO Indicator 60-minute YM study showing uptrend & downtrend moves.

TGO comes with robust features that are all integrated into a single dynamic indicator

package. TGO clearly filters out sideways & choppy moves as it kept you out on the

current choppy day. Please note the shown VCD Pro & AVGBand indicators are sold

separately.


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Attention: Professional Traders

Thank you for reviewing theMTS FREE sample tools Manua

Now Increase your tradingProfits by switching from static

indicators to Dynamic MTSTools, designed for todays fastmoving markets!!!

Invest in your Trading Toolboxto achieve your financial goals.

Good Trading!

To purchase go towww.microtoolsoft.com

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