The PatternCast signal lines are used to interpret trading signals on a chart, with a focus on three main lines: a black line representing the current prediction, a green line indicating a potential buy signal, and a red line signaling a potential sell. Here's how to read and interpret these signals:
Buy Signal: When the black line meets the green line, it suggests a potential buying opportunity. However, not every touch of the green line by the black line guarantees a buy signal. PatternCast evaluates specific conditions at the moment of contact to determine if it's the right time to buy.
Sell Signal: Conversely, when the black line meets the red line, it might be time to sell. Similar to the buy signal, merely touching the red line doesn't automatically trigger a sell. The decision to sell is based on certain conditions being met at the time the black line touches the red line.
"Strategic Wait": If the black line is between the green and red lines without touching either, it indicates a period of observation. Traders are advised to wait and see without making new transactions.
Multiple Alerts: It's possible to receive multiple buy or sell alerts as the black line can touch the green or red lines multiple times, indicating potential trading opportunities based on the market's movement and the underlying analysis.
Readiness for Signals: Traders should be prepared for additional signals indicating whether to buy, sell, or wait. These signals are based on careful analysis, and even if they might not always align with personal sentiments or market optimism, they are designed to guide trading decisions.
In summary, the PatternCast system uses a black, green, and red line to provide predictive trading signals. Traders should closely monitor these lines for potential buy or sell opportunities while also being prepared for periods where the best action is to wait. The system's signals are based on complex mathematical analysis and specific conditions, emphasizing the importance of readiness and adaptability in trading decisions.