From the May 01, 2011 issue of Futures Magazine • Subscribe!

Software Review: TriggerPointTrading

TriggerPoint Trading
401 Congress Avenue, Suite 1540
Austin, TX 78701
512-215-6199 office
512-215-6197 fax

Price: Monthly subscription fee of $99.95

TriggerPointTrading uses ideas from Wyckoff to identify upmoves (named “springs”) and pending downmoves (confusingly named “upthrusts”) to help you time your trades. An important Wyckoff component is volume, which for retail spot FX is estimated using tick volume from about 20 contributing brokers. The TriggerPoint software places colored dots on your chart to identify “possible springs” (yellow) to “confirmed springs” (green, meaning buy), and the same thing for upthrusts (meaning sell) along with a dot that says “possible trend change.” We were not able to get the proprietary Buy/Sell “pressure indicator” to display on the screen.

By right-clicking on the chart, you can draw your own lines and channels and add some standard indicators (MACD, stochastic oscillator, Bollinger bands, etc.). Multiple timeframes from one minute to one month are not only offered, but recommended—you may not see a confirmed spring on the 60-minute chart, but it’s visible on the 30-minute chart, for example. Your list of charts along one side of the screen has a column with the appropriately colored dot alongside each time frame. We always preach that using multiple time frames is the right way to analyze price action, and here is a direct application. You can’t change the time frame of an existing chart, however; you have to type in the specs for an entirely new chart with the new time frame.

Some of the outcomes are a bit mysterious. On the 60-minute chart of USD/JPY, for example, the price moved from 83.26 at 7 a.m. on March 11 to 76.32 at 9 p.m. on March 16 and never generated a confirmed upthrust (sell signal). USD/JPY then reversed from 76.32 to 81.49 the next day without ever issuing a confirmed spring (buy signal). We would say that missing a nearly 700-point move and then a 517-point move for a total of 1217 points is a serious flaw. We tried to check the 30-minute version, but the chart wouldn’t scroll back that far. The futures version of the same currency pair in the 60-minute time frame, however, came up aces and called both the top and the bottom, although the bottom was still only a possible spring followed by a possible trend change, not a confirmed spring.

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