11 Indicators combine to produce a score ranging from 0 to 11.
A score of 0 out of 11 means that all 11 indicators are negative.
A score of 11 out of 11 means that all 11 indicators are positive.
Although there are multiple ways to use Score Card to find trade entries, it's main purpose in the Breakout Toolkit is to provide secondary confirmation after a Breakout signal.
For example, once you see a Break UP label in the chart, check the Score Card to ensure you have a score of 10 or 11 so that all indicators are in your favor.
- Score Card Settings
The Display setting at the top of the Score Card settings window lets you choose between Default, Custom or you can view any of the available indicators on their own.
'Default' will display a momentum wave, moneyflow, stochastic and a number of other pre-configured indicators.
'Custom' will display ONLY the indicators you choose. Just tick the checkboxes next to your preferred indicators to create your own custom layout.
- Momentum Wave
When combined with a Break UP label in the chart, a green dot at the bottom of a wave is a great secondary confirmation for a move to the up side.
Also, watch as the white peaks disappear followed by a green or red dot. These are often the moments of a change in trend direction.
The Money Flow wave is a tool for measuring buying and selling pressure.
This is done through analyzing both price and volume.
When the wave rises, this indicates an increase in buying pressure. When it falls, this indicates an increase in selling pressure.
The Money Flow wave can generate several signals, most notably; overbought and oversold conditions and divergences.
This tool helps you detect a trend reversal bottom which may result in a great entry.
Great for buying the bottom of the dip. Entry after the final red diamond in a row will often produce the best buying opportunity.
- Volume Weighted Average Price
The Volume Weighted Average Price (VWAP) shows the average price of a trading pair, adjusted for its volume.
Moving up through the center line can act as entry confirmation for a long and moving down through the center line may indicate confirmation for a short.
- Relative Strength Index (RSI)
The RSI is a momentum indicator that measures the magnitude of recent price changes to identify overbought or oversold conditions.
The RSI is displayed as an oscillator (a line graph that moves between two extremes) and can have a reading from 0 to 100. The indicator was originally developed by J. Welles Wilder Jr. and introduced in his seminal 1978 book, “New Concepts in Technical Trading Systems.”
A high RSI indicates that a trading pair is becoming overbought and may experience a trend reversal to the downside.
A low RSI indicates that a trading pair is becoming oversold and may experience a trend reversal to the up side.
The stochastic oscillator is a momentum indicator which compares a the closing price to previous prices.
It is used to generate overbought and oversold signals,
Changes in the Stochastic direction can be used as secondary confirmation to enter or exit a position.
This simplified version of the MACD indicator is a trend-following momentum indicator that shows the relationship between two moving averages of a security’s price.
MACD helps to determine whether the bullish or bearish movement in the price is strengthening or weakening.
Use the MACD color and direction as secondary confirmation for entry or exits.
- Net Volume
This powerful indicator shows the cumulative effect of volume over time.
Positive net volume suggests an bullish upswing, while negative net volume suggests a bearish downswing.
Look for a highly volatile Net Volume. In the below, the strong moves in Net Volume are reflected in the price swings.
- Score Chart
The Score Chart highlights scores of 0 or 1 with red vertical lines and scores of 10 or 11 with green vertical lines.
These are the moments when your Score Card score was hitting it's maximum to the upside or downside.
You can see the effect on price when all indicators are in alignment.
This may be the ultimate secondary confirmation.