TriggerCharts Aileron360– Overview
The TriggerCharts – Aileron360 Indicator provides a methodology for finding contra-trend levels that are potential inflection points for entry. The indicators algorithm combines several trending and oscillating signals (proprietary and traditional) to provide each security a “composite score”.
This indicator can be used in conjunction with other indicators to help further refine turning points and trend strength. The Aileron360 is featured on the TradeStation Platform in two different versions, Aileron360 Chart Only and Aileron360 with Chart, RadarScreen and Scan capabilities.
TriggerCharts Aileron360 – Application
Visualizing the Trend
When a security’s score reaches a level that is higher (lower) than the average historical range the Aileron Indicator histogram color will change over time so that the user can visualize the trend or trend exhaustion.
- Aileron Above the Zero Line:
- Yellow Bar – Bullish trend.
- Green Bar – Continuation of bullish trend.
- Magenta Bar – Bullish trend exhaustion beginning to occur. Potential inflection point.
- Aileron Below the Zero Line:
- Dark Red Bar – Bearish trend.
- Orange Bar – Continuation of Bearish trend.
- Magenta Bar – Bearish trend exhaustion beginning to occur. Potential inflection point.
If the composite score moves beyond the average historical range it will turn magenta to signal the extreme level of potential trend exhaustion. Once the score is high (low) enough to signal the potential for an inflection point, it will be indicated with a red (yellow) “+” marker within the indicator window. At these extreme levels, considerations should be given to opening or closing long or short positions.
This indicator provides contra-trend positioning. As an example, when the indicator turns magenta and/or a cross appears, this shows the exact bar that the most extreme level is reached.
Signals can be combined with TriggerCharts Commander Series Indicators to assist with better trading decisions and timing for multiple confirmations. Trade signal confirmations from multiple indicators are recommended to increase the probability of a successful trade.
TriggerCharts Aileron360 Indicator can be used on any timeframe and any symbol for a quick reading
of the score, strength of trend and potential turning points.
TriggerCharts Aileron360 - Configurable Inputs
|Setup MA||Sets the number of price bars to calculate the setup line’s moving average. The setup line should be longer than the trigger line.
Default = 5
|Trigger MA||Sets the number of price bars to calculate the trigger line’s moving average. The lower this number the faster the indicator will respond to the most recent Aileron results. Default = 3|
|Trigger SMA or XMA||Sets the speed of the trigger line with either a simple moving average or exponential moving average. Default = “XMA”|
TriggerCharts Aileron360 - Display Information
Solid Red Line
|The setup line will show the general trend depending on the settings|
Dashed Blue Line
|Depending on the direction and level of the Aileron indicator, the trigger line will provide an oscillator against the setup line that can be used to determine short-term changes in direction.|
||Represents the current and historical level of the Aileron Indicator. The color of each bar dynamically reflects the relative value as compared to historical levels for a security.|
– Buyer Exhaustion
– Seller Exhaustion
|Above and below the Aileron Indicator Extreme (potential trend exhaustion) markers will appear when certain conditions are met. These are to be viewed as contra-trend inflection points for entry and exit opportunities.|
*Approximately 200 bars of data is needed to load all functions for the Aileron Indicator
TriggerCharts Aileron360 - RadarScreen
The Aileron360 RadarScreen allows the user to monitor a multitude of positions all at once. This will deliver key pieces of information from the Aileron360 indicator across a range of time frames to signal the various triggers, extremes and reversals that may be occurring within each position.
Signals to be considered include the following:
- Trigger X Up : This signal appears when the Trigger Line (Dashed Blue Line) crosses up through the Setup Line (Solid Red Line). This signal generally indicates a shorter-term buying opportunity as the trend is changing to bullish.
- Trigger X Down : This signal appears when the Trigger Line (Dashed Blue Line) crosses down through the Setup Line (Solid Red Line). This signal generally indicates a shorter-term selling/shorting opportunity as the trend is changing to bearish.
- Reversal Up : This signals that sellers have potentially been exhausted and that the trend is changing from bearish to bullish.
- Reversal Down : This signals that buyers have potentially been exhausted and that the trend is changing from bullish to bearish.
- Levels of Extremes : Levels of extremes are indicated on the chart as either a Red Cross (Buyer Exhaustion) or Yellow Cross (Seller Exhaustion). As the number of exhaustion points increase, the greater the chance for a reversal in the underlying trend.
This can then be used to monitor one or more securities over a variety of time frames (5min, 15min, 30min, 60min, Daily, Weekly, etc…)
TriggerCharts Aileron360 - Scanner
The Aileron360 Scanner allows the user to search for positions with a particular set of criteria from the Aileron360 Indicator which include:
- Trigger X Up
- Trigger X Down
- Reversal Up
- Reversal Down
- Levels of Extremes
The scanner can search out positions that meet the above criteria across any time frame and any particular set of securities. It is worth noting that the more securities you are using within your dataset, the longer the scan will take to complete. Additionally, scanner results are not intra-bar based, but rather on the last closing bar of the time frame selected.
To view configurable inputs within TradeStation:
- Right-click within the chart where the indicator is present and choose “Format Analysis Technique”
- Select the appropriate indicator and choose “Format”
- Under the “Inputs” tab is where you will find the “Configurable Inputs”
- Under the “Color” tab is where you will find the ability to customize the color display of the indicator.