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Secrets Behind TradeDots

TradeDots' real-time buy/sell signals harness the power of market data to provide potent indicators, giving traders valuable insights into dynamic market trends. Our unique system leverages the pulse of market patterns and price action to deliver 'buy' and 'sell' signals that spotlight potential trading opportunities. TradeDots distills complex data into actionable insights, weeding out unnecessary market 'noise'.

What do the signals mean?

Our system generates a total of 10 different alerts, each of which corresponds to either a long or short trading order in the market. For a comprehensive understanding of these trading alerts, we recommend referring to this page.

These "buy" or "sell" alerts should not be interpreted as financial advice or followed blindly. They represent data-driven insights produced by our indicators and should be incorporated into a well-rounded trading system to maximize results.

tradedots on Linde plc

While our alerts aim to predict market trends with the best accuracy possible, they do not guarantee a 100% accuracy rate. The market can behave unpredictably, contravening the forecast, potentially leading to losses if the stop loss is hit.

How are the signals generated?

The generation of a signal is an intricate process, adhering to a set of rules and meeting certain conditions.

The process initiates with a macro-level market trend analysis, deploying two Exponential Moving Averages (EMAs), one assigned to the current timeframe and the other to a higher timeframe, typically a 1:3 to 1:4 ratio. "Buy" alerts only emerge during bullish markets, and conversely, sell alerts during bearish markets, reflecting the foundational strategy of trend-following trading.

Following this, the system employs price action calculations to identify potential reversal patterns. It focuses on a specific range of candlesticks, deploying a proprietary mathematical model to parse the chart patterns and pinpoint occurred recurring reversal patterns. This allows us to identify similar reversal patterns in the future.

The system then fine-tunes these findings at a micro-level, using candlestick body and wick data, ensuring near real-time reversal confirmation. If the price action clears all these checkpoints, the system marks the entry and exit alerts on the chart.

How reliable are the signals?

The robustness of our indicator is contingent on historical market and instrument price actions. Consequently, signal accuracy varies based on market nature, price volatility, timeframe, liquidity volume, and the asset itself. However, TradeDots' stringent rules and filters emphasize the signal quality, ensuring reliability across diverse market conditions.

To enable users to evaluate signal performance across various markets, we offer an indicator equipped with a backtesting tool that calculates asset returns over a specified period. This allows for a clear visualization of returns and win-rate when following the signals. By understanding and correctly implementing these signals into your trading strategy, you open the door to potentially enhanced trading outcomes.

TradeDots on Costco Stock

tip

Always exercise caution, do your own research, and develop a clear take profit and stop loss strategy when using TradeDots indicators.


Note: All scripts and indicators offered by TradeDots are intended for educational and informational use. Past performance is no guarantee of future results.