Pro bundle is packed with best in class indicators that can help traders analyze any chart and be successful.
If you need help adding pro bundle to your chart then refer to our "Getting Started >> Chart Setup" section for more details.
This article assumes you have setup similar color selections for each indicator as mentioned in "Getting Started >> Chart Setup" document.
With reference to above diagram, pro bundle consists of 6 indicators.
Main chart indicators:
Trading Line (T): is the center line showing 4 different colors (bright green, light green, bright red, light red)
Low / high risk zones (LRZ, HRZ): Low risk zone (bullish) is represented as dark black background. Low risk zone (bearish) is represented as light red background. Any other space on the chart outside of these zones is considered high risk zone.
Strength and weakness arrows: There are represented as green colored up arrows and red colored down arrows.
Squeeze indicator: This is represented as a orange shaded region covering the trading line and upper / lower bands.
Divergence indicator: This is represented as green, red, cyan or yellow candles.
Lower chart indicators
Momentum Line: This indicator represents 2 lines (pink and yellow). Pink line is the primary momentum indicator and yellow is secondary. These help in identifying bullish or bearish divergent setups.
Let's dive into each of the above indicators.
Trading Line (T)
This is the most important indicator in Pro bundle as it has been specially designed to identify any kind of trading setup.
What is Trading (T) line indicator?
This indicator defines trend changes and trend confirmations. It can be configured in 4 colors (refer diagram-2).
When trading line transitions from light green to bright green, bullish trend is confirmed.
When trading line is bright green, trend is bullish.
When trading line is light green or light red, price is range bound or volatile.
When trading line transitions from light red to bright red, bearish trend is confirmed.
When trading line is bright red, trend is bearish.
Trading line is surrounded by customized inner and outer bands (refer diagram-3) showing dynamic support or resistance level.
Trading line serves as a support and resistance line in bearish and bullish scenarios.
When price moves above the trading line, our setup showcases an outer band with secondary support and resistance lines. The gap between the outer band and trading line represents the inner band.
When price moves below the trading line, below chart shows the outer band with secondary support and resistance lines.
If you need additional details on setting up these bands then refer to "Getting Started >> Chart Setup".
Here are a few examples of how you can use this indicator.
If you are looking to open a long position then wait for the price to close above the trading line.
You can increase your position size after the trading line has confirmed the bullish trend.
It is not advisable to open short positions when the trading line has confirmed a bullish trend.
Trading line indicator also helps to invalidate bull trap and bear trap scenario’s.
Low Risk and High Risk Zones (LRZ, HRZ)
These indicators are represented as background colors which help identify bullish or bearish zones (refer diagram-4).
Low risk bullish zones have been highlighted in dark black background. This implies price is expected to make higher highs.
Low risk bearish zones have been highlighted in light red background. This implies price is expected to make lower lows.
Any other zone outside of the above 2 is considered high risk trading zone (displayed in chart with gray background). These zones represent transitions in a trend, range bound scenarios and other high volatile conditions.
Here are a few examples of how you can take advantage of risk zones.
If you want to open a long or short position then wait for a low risk trading zone to begin.
You can let your short positions run as long as the low risk trading zone has not ended.
If you want to lower your risk profile on existing trades, you may choose to downsize your positions when a high risk trading zone has begun.
If you are a day trader and always on the lookout for high probability setups with high success rate then you should always be trading inside a low risk trading zone.
Strength and Weakness Arrows
These indicators represent strong momentum. With reference to above diagram
When a strength arrow (green arrow) is displayed, it indicates strong momentum in upward direction.
When a weakness arrow (red arrow) is displayed, it indicates strong momentum in downward direction.
Here are a few examples of how you can take advantage of these arrows.
If chart is trending and price pullbacks to a support level, look out for these arrows as it indicates a strong bounce back in price action.
If you are a intra day trader, you can take advantage of the timing of this indicator by entering a new trade as soon as an arrow is displayed on the chart.
Squeeze
This is the best indicator to catch volatility breakouts. It works on both time-frames HTF (high timeframe) and LTF (lower timeframe).
Key points related to squeeze indicator (refer diagram-6):
This indicator is represented as a shaded orange color covering the trading line. You can easily spot a squeeze on the referenced diagram.
When price enters a squeeze, we can expect volatility breakout in any direction.
If trading line confirms a trend inside a squeeze then price will highly likely follow the trend.
Squeeze breakouts often start new trends.
Here are a few examples of how you can use this indicator.
If you are bullish and price enters a squeeze region, check if price action is trading below the trading line. This is the first indication of a trend reversal. If the trading line confirms a bearish trend inside the squeeze you can consider reducing your risk profile by closing your long position or reducing your position size with stop loss set to the support level of the squeeze region.
When a squeeze begins, check if chart is trading in a low or high risk trading zone. If the chart is in a low risk trading zone then there is higher probability of a bullish breakout. This allows traders to position themselves in a long position before a squeeze breakout occurs.
Divergence Indicator (DIV)
This is is the hottest indicator in pro bundle as it displays long or short signals by displaying a colored candle. I earn most of my profits by trading divergent setups. These signals can be configured for 6 different scenarios in low risk and high risk trading zones. Momentum lines (pink and yellow, refer diagram-7) help us in identifying strong and weak divergent setups.
Short Signal
We have configured short signals to be displayed as red and yellow candles.
When price is moving in a low risk trading zone, short signals are displayed in the form of red candles. This represents a strong bearish divergent setup indicated by pink and yellow momentum lines in the lower chart.
When price is moving in a high risk trading zone, short signals are displayed in the form of yellow candles. This represents a weak bearish divergent setup indicated by the pink and yellow momentum lines in the lower chart.
How do I analyze the lower chart showing 2 momentum lines?
The lower chart has been designed to display bullish or bearish divergence.
Divergence is created when primary momentum line (pink) moves away from the secondary momentum line (yellow). It forms a V shape pattern.
As a trader, if you can identify the V shape pattern and distinguish between a strong and weak divergence then you can master any trading scenario.
Identify a bearish divergence setup using 2 simple rules
If pink line is below 20 then trend is mostly bearish
If pink line is below 20 and yellow line closes above 80 then it forms a strong bearish divergence pattern. This is represented as red candle in below diagram.
TIP- If pink momentum line stays below or close to 20 mark then trend will remain bearish.
Here are a few examples of how you can use this indicator:
If you missed an entry when the bearish trend started, your next best entry is either a minor pullback or a bearish divergent pattern.
Strong bearish divergent patterns may tempt traders to go long. Stick to your trading plan and consider long positions only if the pink line starts moving above 20 mark and price closes above the trading line.
You can rely on pro bundle analysis to rule out risky long positions in a bearish divergence scenario.
Long Signal
We have configured long signals to be displayed as green and cyan candles (refer diagram-8).
When price is moving in a low risk trading zone, long signals are displayed in the form of green candles. This represents a strong bullish divergent setup indicated by pink and yellow momentum lines in the lower chart.
When price is moving in a high risk trading zone, long signals are displayed in the form of cyan candles. This represents a weak bullish divergent setup indicated by the pink and yellow momentum lines in the lower chart.
Identify a bullish divergence setup using 2 simple rules
If pink line is above 80 then trend is mostly bullish.
If pink line is above 80 and yellow line is closing above 20 then it indicates a strong bullish divergence. This is represented as a green candle in below diagram.
TIP- If pink momentum line stays above or close to 80 mark then trend will remain bullish.
Here are a few examples of how you can use this indicator:
If you missed an entry when the bullish trend started, your next best entry is either a minor pullback or a bullish divergent pattern.
Strong bullish divergent patterns may tempt traders to open short positions. Stick to your trading plan and consider short positions only if the pink line starts moving below the 80 mark and the price closes below the trading line.
You can rely on pro bundle analysis to rule out risky short positions in a bullish divergence scenario.
