Flux Broadhead Elite
- Powerfully identifies market reversal points
- "On bar close" signal confirmation
- Never 'repaints', 'disappears', or 'moves'
- Can be used as a counter-trend reversal, or trend pullback entry
- Frequently appears near Flux Support & Resistance areas, Flux Histogram Times
- Powerful targeting system allows users to program fixed or ATR based stops, and targets
- Works on all bar types, with extraordinary performance on non-time bars (range/renko/tick/vol)
The Flux Broadhead was primarily developed to spot counter-trend reversals...the places where the market had essentially hit a "brick wall" in trend with no hope of additional buying or selling. It searches market data for a condition of "super-saturation", or "market weightlessness", where the Institutional Algorithms are staring at each other saying, "What do you want to do now?". Imagine an Astronaut floating in the space station, with no outside forces acting on them, just 'hanging' there. This is what the Broadhead is programmed to find, and display, on the close of the bar.
The Broadhead [in its counter-trend form] therefore performs exceptionally well in congested, range bound, sideways market conditions, which works out statistically well with market behavior observably consolidating 60-70% of the time. Here's an example of a typical range bound day with Flux Broadhead applied as a counter-trend indicator:
Trend Pullback Deployment
One of the hardest things to do in trading however, is pick market highs and lows....what veteran traders call "catching a falling knife", or "top picking". We quickly learned though that with the addition of a simple trend filter, we could increase the sensitivity of the indicator and add it a second time to the chart as a trend-pullback confirmation tool. This allowed us to find the subtler shifts in market sentiment when an established trend had developed.
Some traders quickly determined that if they used an ADX type of indicator, they could "shift gears" from counter-trend to trend pullback mode using the Broadhead in both configurations...watching to see which signals were applicable depending on the strength of the developed market trend.
ATR AND FIXED TICK STOPS AND TARGETING
The last generation of developments of the Flux Broadhead catapaulted this indicator into the "Elite" category. We incorporated a targeting and stop assistance parameter into the tool that allowed traders to either use a fixed tick stop and target, or a more fluid and reactive Average True Range method. This allowed traders to react without thinking as opportunities for trades presented themselves during the market, understanding what a signal looked like, what the risk was, as well as the potential reward.
In this example, you see a template where the trader is searching for trend pullbacks in the Emini S&P and targeting those pullbacks with a 3x ATR stop, a 3X ATR target, and a 5X ATR target at each instance of the signal with a 120EMA filter.
Combining Flux Times and Broadhead Signals
This last example shows you how you can put the power of the Flux Histograms and the Flux Time Cycle Markers together, and pair them with Flux Broadhead signals for the ultimate confirmation and confidence tool. The Flux Broadhead will confirm market sentiment....that "super saturation level" near or at the times the Flux software had pre-determined a statistically high likelihood of directional market movement.
Simply apply the Flux Broadhead with the desired filtration and sensitivity settings and wait for the times in the market that line up with the Flux Histograms AND have an agreeing confluence with the Flux Broadhead tool