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One of the first things I noticed after I downloaded Visual System Trader (VST) by Jose Silva was the use of ATR bands as an indicator. I then personalized the ATR band code to my own use and will incorporate them into my market approach.
One thing I did was the creation of a stand alone lower ATR band indicator. Since I am only interested in long entry signals this makes it easier to call up as a reference. I also narrowed the spread amount to provide more signals. A little whippy but probably will be used more as a 'pay attention' signal than as an entry signal. The signal occurs when the close moves from below to above the band. A stop point is also provided by this indicator when the close moves from above to below the band.
I have also created another indicator using the wider lower ATR band. I simply added it to the existing DARVASKASE indicator and took the average of the two. Named it the SILVA COMBO. It is a little faster than the DARVASKAS indicator. Signals are generated with a cross of the close from below to above the signal line. The stop point from the lower ATR band mentioned in the previous paragraph can be used as an initial entry stop level for this signal.
I now have four daily scans to perform.
Close moving from below to above the Darvas Box Low.
Close moving from below to above the DarvasKase line.
Close moving from below to above the tighter lower ATR band.
Close moving from below to above the SILVA COMBO.
From the results I can then visually check the charts to see what has potential. As an aside I would like to again thank the creators of the JB LIST CREATOR program. All of my daily scans are kept in Excel and the ease of access I now have to these records is fantastic. While working with these new indicators it was great to be able to bring up any sample data from the past that I wanted to use.
A chart and a video are below.
Thank you for your time.
The video does not want to display so here is a link.
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