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C9 - A superior reversal indicator

Course TA200

C9

An indicator designed to identify market exhaustion using price patterns.
It can help to anticipate trend reversals.
Often, a completed C9 is the best way to identify buyer or seller exhaustion zone.
Based on the premise that price reversals are the result of market exhaustion.
Correction or Trend reversal ? C9 often asnwers this question

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How it works

The C9 indicator consists of a set of numbers & the letter 'C'
the numbers & the letter 'C' are displayed on price charts at specific locations
When a series of C9 numbers from 1 to 9 appear below prices, selling may be getting exhausted
When a series of C9 numbers from 1 to 9 appear above prices, buying may be getting tired

Extended moves: the 'C'

Sometimes, the letter 'C' comes after numbers. The 'C' tells us that the exhaustion process continues.
'C' stands for 'Continued'
In a strongly trending market it is possible for the trend to move a lot further before finally getting exhausted.

Using the C9 indications

Prices are ready for reversal when 9 numbers are visible.
Then, a fresh bar appears without numbers and 'C'
Traders may want to take profits on existing positions when a C9 reversal is confirmed.

Action by Traders

For a bullish trader, the 'bulls are exhausted' signal comes when 9 numbers are printed above the price bars.
For a bearish trader, the 'bears are exhausted' signal comes when 9 numbers are printed below the price bars.
Traders should (a) close their positions, or (b) tighten their stops
We can expect a reversal of some sorts at current levels

C9 confirmation

The C9 signal becomes more powerful when there is additional technical evidence
Example: A C9 top 'bulls exhausted' is made where there is earlier resistance
Example: A C9 bottom 'bears exhausted' is made where there is earlier support
Example: C9 'bulls exhausted' signal comes with an indicator breakdown like Stochastics sell

C9 - Useful in selling options

When C9 gives a reversal signal, the selling of options becomes a viable strategy
After a confirmed C9, prices should reverse, or consolidate
In both cases, options premiums will fall
As with all trades, use proper stop losses

Applying C9 to your trading

C9 identifies reversals
At Technical Trends, the C9 strategy is available in Trend Mechanic, our charting tool.
Our client - only services include newsletters, comprehensive training courses, seminars, specialized software for trading
We believe that the C9 method adds value to trading.

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