This very simple technical trading indicator help your find and track reversals on prices in short-term but also long-term.
S-Filter & T-Filter indicators
Let me introduce the S-Filter and the T-Filter technical indicators, two trading indicator on price that will help you to find reversals on price. Both indicators are very simple, yet powerful. One is short-term, the other is long-term but both are identical.
Meet the S-Filter and T-Filter, you companions to track reversals on prices
First, both are made up of two lines. They are displayed on the price chart. And they resemble moving averages, but are much more intelligent!
On the above picture you can see that:
- the two lines are blue when in downtrend
- and orange when in uptrend.
- Prices surf above the S-Filter in an uptrend
- but below it in a downtrend.
- When both Filters (S & T) are rising up, the movement is bullish.
- Whereas when they are dropping, the movement is bearish.
- You are in between when they are not simultaneously moving in the same direction.
Here is an example of a bearish situation:
So, you can see that spotting reversals on prices is easy with these indicators. But you get others benefits.
Main benefits of using the S & T Filters
Moreover, it is possible to use theses indicators:
- to identify trends and momentum (with the slope of the curves)
- as stop loss ((when the price goes below both the curves in an uptrend)
- as reversals detector.
And this with only 2 curves!
Last but not the least, it can also anticipate movements.
Avoid crashes by detecting reversals on prices
As seen in the previous picture, with this indicators you may avoid the big part of a crash, in this instance, the 2008 crash. But it’s also possible with a single stock (or cryptocurrency).
Let’s see this chart:
In fact, when both indicators are moving in the same direction, the movement is powerful. You may used it to avoid bearish markets or to take advantage of them.
Where do you find the S-Filter and T-Filter?
Don’t forget to take a look at our shop or click on the pictures below.
Illustrations : canva & Charts: TradingView