Testing the Repulse indicator in conjunction with repeating...

Testing the Repulse indicator in conjunction with repeating ranges/macd formations/stochs/moving averages for likely entries/exits.

(basically as further confirmation of my thoughts on expected price movements).

In short:
- General Price Formations prove the primary item to base the aforementioned on. the above merely support the projected price direction and range - duh.

- each chart requires a different extreme high and low repulse indicator to be inserted. each time the repulse line (squiggly line hits the extreme points), a close eye must be kept on the smoothed repulse line. If on these extreme touches, the smoothed line pierces the repulse line at or near the extreme points, this can indicate buy/sell points. i then review the general price pattern/ formation as well as the position of key resistance supports, and then confirm with MACD/stochs/MAverage setups.

Summary of current DJI:
A sell signal was given back in Oct 2011 on the repulse indicator. No re-entry signal was given in the bounce back which followed the Oct swing high. However the channel built from the downtrending resistance coupled with MACD/Fibs from 07/08 to 09 low provided enough to dip the toes in.

Price is now retesting the major channel (downsloping) with the repeating red range now complete. At the moment the major item going for further rises is the Mov averages from my setups.

Low risk short right now. watch for how well the mov av bands act as support but imo this shall be poor and confirmed with breakdown of Stochs/MACD.

Target is still 12000 (review if/when price reaches the blue upward sloping support. But from this point in time i am playing the grey range.

Of course hindsight helps. but i thought producing the lead up to this formation better explains why i think short is a safer bet for the time being..

Happy to change views subject to the chart painting a different picture to me, but this is how i will be playing the coming trading period (if the downward channel is not broken)

(there is more repulse entries i could have highlighted during the Aug - Oct times)..... worked well during 09...

Long entries are found more easily with this indicator during bearish conditions.. during the strong bullish climbs, Guppy MvAv has trumped the indicator for selling positions (in conjunction with long term upward supports).
This further highlights the fact to me that price formations and general trend trump indicators, but using them all with particular rules and guidelines could enhance ones trading experience.