The CIT Angles indicator solves the age old problem of finding the correct angle rise (step) for a given price level, adjusted for volatility. The advantage of angles over other indicators is that with a properly drawn angle one can immediately tell what the expected price target and range is for a given future time period, whether a price swing is likely to continue or bout to end, and if there is already a trend in place, whether the trend is strong, weak, strengthening or weakening.
The CIT Angles indicator is bundled with the CIT Time indicator.
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Angles and their application to trading are usually associated with the legendary W.D. Gann who first wrote about them some 70+ years ago.
The CIT Angles are inspired by his pioneering work and strive to automate and perfect this tool for the 21st century trader.
CIT Angles automatically calculate the correct step (price incremental increase/decrease for drawing the angles), and display 1 x 1, or 45 degree angles, from swing highs and swing lows. The 1 x 1 angle, is drawn by default because it shows where price and time are in balance.
Users, however, have the ability to select harmonic angles in order to increase or decrease the incline of the angle. CIT Angles work great as a filter for the CIT Channels and CIT Cloud, by showing you when to avoid being taken out of a trade by minor counter trend swings.
The CIT Angles are divided into two groups: Pivot Angles and Swing Angles. In addition, users have the option to draw angles and price targets from any point of their choosing.
Pivot Angles are drawn by default. As the name implies, they are drawn from pivot highs or lows as detected by the indicator's algorithm.
Those who prefer to see angles which more closely follow price action, or like to work with swings of shorter duration, can enable Swing Angles from Settings. For ease of use, and to avoid cluttering the screen, the Angles are separated into two different indicators: Up Angles and Down Angles, which also can be controlled from Properties:
Angles offer a clear advantage over regular trendlines in that once you have the ability to choose the correct incline, they require only one point to be drawn from. In that regard, the CIT Angles provide an excellent reference point for drawing your own trendlines from any point of your choosing.
The indicator includes an additional component, the SAR (Stop and Reverse) line, which tracks the interaction between price and the angles, and helps avoid whipsaws associated with minor price moves. The SAR Line can also be used as a filtering tool for all other signal generating strategies included in the package:
Those who wish to draw angles from custom selected points can do so by enabling the Price Target feature from Properties.
This is a fast and convenient way of displaying future price and time targets based on your own trend expectations:
If you don't have a specific direction in mind, and choose the close as a starting point for displaying custom price targets, the indicator will display both the upside and downside target for the selected time frame, but without displaying the actual angles in order to avoid cluttering the screen with angles pointing in opposite directions:
The CIT Angles indicator has many features which can be enabled or disabled from Properties. Angles also work well with the other indicators included in the CIT Collection package and their synergy offers opportunities to explore many new ways for analyzing the markets. For example, try combining Up Angles with Down Pivot line from CIT Channels, or Channels with Pivot SAT, etc. The possibilities are countless.
Bundled with Angles we offer the CIT Time indicator -- a dual purpose indicator which marks the beginning and end of price swings, and also display the average swing duration. It is a convenient visual aid for identifying swings lasting longer than the historic average (thus nearing exhaustion), and for spotting swings of below average duration which are usually of the corrective variety.
The Swing Time indicator can also be helpful in detecting trend shifts. For example, in an uptrend the length of upswings, in general, should be longer than the length of down swings. When the relationship changes, that's a solid indication that a long term trend change has occurred or is about to occur.
Insight into the swing duration of a particular instrument can be invaluable for fine tuning many other indicators, and allows users to avoid the default settings trap. It's worth mentioning that we've done extensive study of swing time duration over 130 years of DJIA daily data, and the results show that both up-swing and down-swing duration has remained constant over the years. The same goes for swing price gains and losses and advancing/declining volume, something that is possible to visualize and measure with the Price and Volume components of the CIT Time indicator:
It should be noted that the average price gain/loss is measured in % terms (i.e. 3.26 = 3.26%):
As an added bonus, the CIT Time indicator can show two time frames at the same time. Dual time frame indicators are very useful in technical analysis, as they allow avoiding whipsaws associated with minor swings in lower time frames. For example, the chart of TSLA shows that the weekly down swing ended in April, and that all daily counter-trend moves should have been ignored or used for pyramiding an existing long position:
Recommended reading: W.D. Gann's books and trading courses.
Futures and forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones’ financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.
Hypothetical Performance Disclosure
Hypothetical performance results have many inherent limitations, some of which are described below. no representation is being made that any account will or is likely to achieve profits or losses similar to those shown; in fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading. for example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all which can adversely affect trading results.