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There
are no formula in the system. This makes it simple to use and
follow. Your analysis can be made very swiftly and accurately. All
you need to remember is the trend-stop [rice to make your decisions.
All signals are given because of the price reaching or exceeding
certain levels, not because of the result of a formula.
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The
system is not affected by time. If the price doesn’t move, then
the indicator doesn’t move. This is something other indicators,
based on formulas, have great difficulty with. Sometimes a trend
change can take weeks, at other time, a few days. No formula can
cover this problem.
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Compared
to the "break system", it has the advantage of recognizing
the importance and influence of the opening price and the color of
the bodies. A break line only looks at the close of each
trading session. When we have a bullish trend and one day the price
opens much lower, due to certain news factors, but by the closing
bell recovers most of the losses then a break line will make a turn.
The TC/BR system will not generate a sell signal because we still
have a white candle.
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The
TC/BR system does not have an "oversold" or
"overbought" level. This is considered an advantage. It
means the system can be used with equal effectiveness in long bull
or bear markets.
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The
system will generate re-entry points. Something that’s unique and
of great use for futures and options traders.
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All
signals can be viewed onscreen making the system very strong,
visually. The chart doesn’t get overloaded with lines.
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The
system incorporates the importance of the gaps (windows). Gaps have
proven in the past to function as support and resistance levels, a
property only candlestick analysis can exploit.
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The
key element in the candlestick analysis is the search and deduction
of turning points. All these patterns have the element of countering
or overlapping built into them. The TC/BR system follows the same
principles but uses them to compare the different TC’s in the
chart.
