TradeTimer explained !
Fortunately stock prices change. They move up, down or horizontally on a certain timescale.
If the prices move in the same direction for some time we speak of a trend and we can draw a trendline. These trendlines are not straight lines, except for the rare occasion when the price changes are equal for several same time periods in a row. In all other situations every new stockprice gives a new direction to the trend and to the trend channel.
Does your currently used analytical software has the ability to draw a trendline and maybe a trendchannel, then they are always build with strait lines. Once you have used TradeTimer you know that these lines are wrongly and misleadingly named trendline and trendchannel since these lines can't be strait. Every added closing price influences the trend and trend channel to change their directions. Trendlines and trendchannels only can and therefore should be drawn dynamically.
Due to the way the old fashion analytical software are programmed to make their calculations they will never be able to accomplish the difficult and time-consuming calculations to draw the trendlines and channels dynamically. They don't even think about building a mechanical tradesystem on the dynamic channels.
TradeTimer is especially build to draw these dynamic trendchannels and it even can show you how the trend and their channels develop them self  through time.
The Channels:
We already know that trends are cyclic in nature and so are the trends in the stock markets.
To show you this we will simply have to filter out a cycle from a range of stock prices in seemingly randomly established stock data.
The trend cycle in the stock markets are not perfect sine waves, but if we filter out the noise, the cycles come close enough for us to use these oscillators for making a reasonable price prediction for the nearby future.
The difficulty with cycles in the stock prices is that they consist of several compounded waves with a different amplitude and wavelength.
Before we can draw a channel, the individual trend cycle has to be isolated from the rest. The perfect tool to filter out a cycle is the moving average (MA). The exact length of the MA's is not of great importance.
We are searching for a system to make a stock price prediction for the near future, so we want only to isolate the shorter waves that are hidden in the stock price data.
We use a short MA to filter out the shortest cycle and a larger MA to find the larger trend cycle. TradeTimer then centers both MA's.  See figure 1.
 
figure 1. Centered MA's figure 2. CMA's with the channel borders
 
The centered moving averages (CMA's)  are perfect centerlines for the Trendchannels. In figure 2 are the channel borders added. The width of the channels is a function of the daily range of the stock price. So the channel width is also a dynamic calculated parameter. The daily range as a function for width is calculated in such a way that 95% of the stock prices remain within the channel borders. In fact the borders act as a support and resistance line. The upper border as resistance and the lower border as support. Dynamically constructed support and resistance.
 
The Cycle oscillators:
The Cycle highlighter gives a plain visualization of how the centered moving averages behave amongst each other with a long cycle and a short cycle. It gives a clear view of the position of the cycle channels in time. See figure 3.
figure 3 Both channels with the Cycle Highlighter.
The Trading System:
The trend channels are constructed and the oscillators are extracted from the CMA's and visualized in the Cycle Highlighter. We manually extend the channel in accordance with present trend direction. With all we know now we can calculate a moment in the near future where the cycles and channels will probably make the next top and the next bottom.
We know the last stock price, the direction of the trend, the position of the price in the channel and the position of the channels to each other and we know the previous price movements. With this data the TradeTimer engine makes its calculations and generates Alerts if a possible favorable condition exists in which we can make money in the near future.
 
On these TradeTimer Alerts you can trade Shares, Options, Futures or any other investment vehicle you like, we recommend to trade in options since the trend cycles are short and the amplitudes are not that large. Due to the leverage with options the option trader can make large profits with relative small price changes.
An other advantage of trading options is that you can safely make profits by taking a Put position when the markets turn south. You can safely make profits in a bear market.
See the Help files for more information about using different trading and investment tools.
With TradeTimer you can make money as long as the stock prices move.
How interpret and how to trade on the Alerts is clearly explained in the TradeTimer helpfile.
 
Since the candlestick pattern recognition system is also a non optimize able trading system which has proven itself already we have added this trade system to TradeTimer to improve the alert generating.
TradeTimer is programmed so that the candlesticks can only generate alerts if the stock prices move around the trendchannels edges.
figure 4. The complete system.
 
See / download the help files for all the books you can read. click here

What can TradeTimer do for you?