Ultimate Trend Signals can help you find reliable signals but you must use it correctly. This tool consists of several indicators and when they are in convergence you will get a powerful signal on your charts. I would say it’s both an indicator and a strategy. There are already a few people in our forum, CommuniTraders, who love this indicator. One of them is Milos, you can see his trading diary here. He was the one who brought this indicator to my attention because he uses it to trade live. There is also a thread about it right here “Ultimate Trend Signals” if you have any questions or anything you wish to share about trading with this tool. Now let’s get down to business, how does it work and how can you benefit from this tool?
Ultimate Trend Signals – How Does It Work?
The Ultimate Trend Signals or “UTS”, uses three indicators to calculate a potential signal: MACD, RSI and Moving Average. Analysis concluded from those indicators are displayed for different time frames on the panel to the left on your charts. For example, if all time frames are in a bullish convergence, then the panel will give you a strong bullish signal written in green text. The caveat is that there can also be a mix like one or two time frames signaling for a bullish trend while others are bearish. The actual signal appears on the candlesticks themselves, displayed through a red or blue dot where red is for put options and blue for call options.
To further help you interpret the direction of the price, a pivot (average support/resistance area) and a daily open level are drawn automatically by the Ultimate Trend Signals. You can use it on any time frame from M1 up to Daily but the lower timeframes such as M1, M5 and M15 give far more signals than the obvious H4 and Daily do.
How to use UTS – The Willy-Nilly Method
Now that you know how it works, you need to know how to really use it. There are two ways, the amateur way and the advanced way. Let’s start with the amateur one, the “Willy-Nilly” way as I call it. Basically, you get a dot and you trade – red for put and blue for call. What about expiry? Well, since I am describing the amateur way, the expiry is also poorly decided. Whatever time frame you are using, use the same amount for the expiry. Yeah I told you, simple amateur way, do this at your own risk.
How to use UTS – The Advanced Way
This method is better suited for people with at least some basic technical charting skills so let’s set up some rules in order to make it easier for you. For example: 1) Don’t trade against the trend. 2) Plot a 50 EMA and don’t take calls when price is below it and don’t take puts when price is above it. 3) Draw support and resistance lines. 4) Draw trendlines. 5) If you are using the UTS on say the M5 charts then make sure at least M1, M5 and M15 are giving you a signal in the desired direction on the panel. 6) Pay attention to the Daily opening and Pivot line the UTS gives you – which side of the line are you trading, up or down? 7) Use market related expiries based on previous market movement instead of picking expiries haphazardly.
Ok, here below is a great example of how to use the UTS properly and get winning signals – I used the M15 for this illustration.
The above picture is the same timeframe and chart that you saw in the first picture. Here, I used a moving average 50 and price is above it and also above my trend line. You can also see price is above the pivot level and trending up. Finally, we got the blue dot – thus signaling a call option. In this case I would have used a 30 minute expiry based on previous chart patterns.
Not a good enough example? Then here is an actual live trade using the UTS recorded in the money by Milos – Post Number 97. In that trade, he got “full convergence” on the left panel, every time frame signaled bearish movement before a red dot appeared, indicating a strong signal for a put. He got the signal (red dot) on the M15 time frame when a red candle closed below the pivot level.
Why Does the Ultimate Trend Signals Strategy and Tool Suck?
It doesn’t really suck. Why? Because it is collecting data using MACD, RSI and Moving Averages but also providing you with price action such as a pivot level and a Daily support or resistance. So it’s up to the user to also use his own brain and don’t use the willy-nilly strategy.
Why Doesn’t the Ultimate Trend Signals Strategy and Tool Suck?
Because as a good trader you will pay more attention to the price action and use the Ultimate Trend Signals tool for the confirmation. It won’t suck at all if you have some basic experience and you understand that this is no Holy Grail system. So do your homework first and learn a few charting patterns and charting techniques instead of giving full control to an indicator. This way you will be more successful, like our good old friend Milos which is making money using this.
Ultimate Trend Signals – Can’t Believe It’s Free!
Honestly, I can’t believe this thing is free and I think it’s the best free “signal tool” I have seen in a while! I have witnessed complete garbage and outright scam robots and indicators that cost blood money and this one is free! Of course, free isn’t always good but using some basic analysis as described above, this tool can become a killer strategy and even make you money. You may already know that I personally don’t like arrows and indicators telling me what to do but I will give this one a thumbs up. It does not mess up your charts either, all you have is the panel on the left and two horizontal lines so it’s clean enough for you to analyze the charts. That’s it, now there is only one way for you to find out if it’s any good or not – try it on a demo. Use the rules I advised for further improvement and don’t just jump in on every dot that appears! Good Luck.