Track 'n Trade Bulls 'n Bears Trading System
Trade Demonstration: Using the Ribbon Indicator
In this Track 'n Trade Trading Training video, I want to talk to you about the Bulls 'n Bears Ribbon Indicator.
The Ribbon Indicator is what you see laid across this chart, here. We're looking at it, in a Stock chart, and this is Apple. I can come in here and I can turn this Ribbon Indicator On and Off. Just simply through the Right Click Menu. You'll notice that this is the Bulls 'n Bears, and this Ribbon Indicator is associated with the Bulls 'n Bears Tool. Therefore, if you don't have the Bulls 'n Bears Plug-In, you won't have the Ribbon Indicator. It is specifically for the Bulls 'n Bears.
What we use it for, is we use it to help us enhance our ability to read the Bulls 'n Bears Tools and the Buy/Sell Signals, as the market moves through different areas of support and resistance.
You'll notice in this Apple chart that the green, of course, with the Bulls 'n Bears indicates that the market is in a strong uptrend. The yellow of course, is when the market is pulled back into a neutral. The red, of course, is when the market is beginning a down trend.
In this situation, you'll notice that we have a nice rally point. Then the market, of course, pulled back, then begin to rally, once again. Now, wouldn't it be nice if we had a tool that could help us identify that that's what this market might be doing? Rather than making a full on complete reversal, as we did, over here. But more so just pulling back and making your projection out into the future.
That's what the Bulls 'n Bears Ribbon Indicator can help us do. If we come in here and we turn on the Ribbon Indicator, you'll notice that as this market begins to flow. If you look at it, kind of like water, going down through a river. You'll notice that it's flowing, but it's getting kind of pushed around, a little bit, by some rocks in the water. But notice that it still continues in the overall general flow of the trend.
This is the Ribbon Indicator as it's flowing up through this uptrend. As we got this signal right here, the Sell Signal. You'll notice that this Indicator is basically helping us to filter out the fact that this market is not a real strong reversal position, but just a temporary downtrend. Then, as the Ribbon Indicator, you'll notice, didn't fold all the way over the top of itself, because the market started to rally, once again.
You'll notice that the Ribbon Indicator is a nice straight, long, wide ribbon, while the market is in a nice, long uptrend. You can see that reflected all the way to this point, here. Now, we come off with a little squeeze point. If I slide this back a little bit, in time, you'll see that as this market began to rally right in here. See how close the ribbon was, see how close they were, and that's indicating that this is a good Buy Signal from the Bulls 'n Bears. Also, that we're in a nice tight squeeze zone.
As that market begins to rally, you'll notice how wide the ribbon strays to spread out. We have this little bit of a fold, right in here. A little bit of a bump, a little bit of a pullback. Notice, of course, that the Bulls 'n Bears is designed to take that information for you from the Fibonacci Ruler. As that market starts to pull back into the Fibonacci sweet spot, down in here. This is where we turn on Neutral. Then, of course, we've gone red, then of course, we start to rally, once again.
As this market starts to shoot back out, we get another Sell Signal, out here. Or an indication that the market is changing from Bullish to Bearish. As that happens, notice how the Ribbon Indicator starts to fold over the top of itself. Notice how, that if the shorter term moving averages of the Ribbon Indicator start to lay down over top. This is indicating that this more of a squeeze point time zone and are ready for this market to make a nice rally in a reversal point. As it rolls over the of itself, or almost folds over the top of itself, you can see that the shorter term moving averages already broke through the entire level of all of the longer term moving averages of the Ribbon Indicator. This is an indication that our confirmation of the indication, that this market is beginning to drop quite strongly.
As this market drops down through this area, you'll notice as it rolls through this longer down trend, that the Ribbon Indicator starts to spread out. You can see that the width of the indicator once again. As the market rounds out along the bottom, and we get this new Buy Signal, right here. As that shorter term moving average starts to cross over, it's an indication, or giving us an indication the market is beginning to change our trend. It's starting to fold back over the top of itself.
We use the Ribbon Indicator as a filter to help us identify areas of support and resistance, and pull backs. Where markets are in strong up-trends and downtrends and the width and the distance between those Ribbon Indicators are what helps us make that identification. As the ribbon begins to fold over the top of itself, this is a change in market direction.