This is a setup for identifying buy signals in the market, particularly for S&P 500 . The indicators we are using here are and the index, VIX .
In the chart above, I have shown two with different settings - one with 2 Standard Deviations from the MA and the other with 3 Standard deviations away from the MA. To get the buy signal, we will use the outer , which is the 3 standard deviations BB.
The buy signal is trigger when the S&P 500 index hits the lower band of the 3 SD and the VIX peaks. For VIX , there is no particular level it should cross, but a relatively high peak, compared to the previous mini-peaks, will be a good signal.
THIS IS ONLY FOR A BUY SIGNAL.
Setup: TSI 3,9,3 , Bollinger Bands overlaid on the TSI at 20,2 , MA 50 overlaid on the TSI, chart set to weekly.
Two buy events are indicated with this TSI setup.
Buy events: 1. The TSI moves outside of the lower BB, buy when the TSI upward through the lower BB. 2. The TSI moves below 0.00, buy when the TSI crosses 0.00 moving upward.
Sell: Sell when the TSI crosses its 50 period MA.