Pat tool is a trend following indicator which gives buy and sell indication with some moving averages.
After the long research of 4 years along with 100’s of indicators & oscillators we have created this wonderful indicator which can avoid signals in a choppy market & gives perfect signal to buy and sell at a right time with 70 to 80% accuracy.
This indicator is made with moving averages, super-trend studies and calculations, we can add standard also in this. It can be useful to trade equity stocks, nifty , bank nifty index and in some . To use this indicator trader must have basic understanding of candle pattern and chart pattern identification studies with moving averages retrenchments.
This indicator works well & gives better results if you have moving average retrenchment knowledge. When candles are retrenching specific moving average line then also sometimes traders get confuse whether to enter with moving average direction / favor or not. So, to come out from this confusion this indicator is very useful. Because it gives signal in moving average favors. So ultimately traders gain some confident on his/her trade that he/she is in the right side of the market.
Another advantage of this indicator is in some of the criteria it gives fix signal in-between the candle formation & once signal is given then it will not change. Unlike the super trend which give signal after candle is closed.
About uses instruction and components.
Time frame – Intraday 5, 10, 15, 30.
Time frame – positional 1 hour to Weekly candle.
Components: 7 Horizontal lines
Light red – R3
Only red –R2
Dark Red –R1
Black horizontal –Pivot (central)
Dark Green –R1
Only Green –R2
Light Green –R3
4 Moving Averages lines (Thick Yellow, Black, Red, Blue lines)
1 Super trend with normal features
Here Yellow line is a Major trend indicator on intra as well as Positional basis. For intraday we will track the black line, blue line and red line. Where black line is the main line (Very important) Red and blue lines are normal lines which we can use for retrenchment positions several times. As we know when moving averages crosses trend changes & as per that we buy or sell , but here the buy and sell entries are little different.
Buy- If upside Green Triangle appears with price trading above Black or red or blue line & retrench either Black, red or blue line.
Sell - If downside Red triangle appears with price trading below black line and retrench either black red or blue lines.