Chronos Sequential Compass (CSC)

17 сент.

The Chronos Sequential Compass (CSC) is an advanced technical analysis tool used to identify potential price exhaustion points, trend reversals, and provide a framework for understanding market structure.

Key Components:

Setup Phase:

• Bullish Setup: 9 consecutive closes lower than the close 4 bars earlier.
  
• Bearish Setup: 9 consecutive closes higher than the close 4 bars earlier.
  
• Visualized by green (bullish) or red (bearish) triangles on the chart.
  

Countdown Phase:

• Starts after a Setup is completed.
  
• Counts from 1 to 13(D), comparing the close to the low (for bullish) or high (for bearish) two bars earlier.
  
• Displayed as numbers below (bullish) or above (bearish) the price bars.
  

Setups:

• A Setup is complete when the low of bars 6 and 7 in a bullish Setup are exceeded by the low of bar 9.
  
• For bearish Setups, the high of bars 6 and 7 must be exceeded by the high of bar 9.
  

Risk Levels:

• Established when a Countdown reaches 13(D).
  
• Acts as a reference point for potential trend reversals.
  

Countdown Delayed:

• Indicated by a '+' symbol.
  
• Occurs when a Countdown reaches 13(D) but doesn't meet specific criteria for completion.
  

Recycling:

• Resets the Countdown if a strong opposite trend emerges during the Countdown phase.
  

How to Use the CSC:

Trend Identification:

• Consecutive Setups in one direction indicate a strong trend.
  
• Look for potential trend exhaustion when Setups start appearing in the opposite direction.
  

Potential Reversal Points:

• Pay attention when a Countdown reaches 13, especially if it coincides with other technical factors (support/resistance, chart patterns, etc.).
  
• A completed Countdown doesn't guarantee a reversal but suggests increased probability.
  

Risk Management:

• Use Risk Levels as potential stop-loss points or profit-taking levels.
  
• Be cautious of trades against the trend when price is far from the Risk Level.
  

Confluence with Price Action:

• Look for candlestick patterns or chart formations at key Sequential levels for higher probability setups.
  

Timeframe Coordination:

• Consider using CSC on multiple timeframes for a more comprehensive market view.
  
• Higher timeframe signals often carry more weight.
  

Delayed Countdowns:

• A delayed Countdown (indicated by '+') suggests the trend might continue.
  
• It can provide opportunities for trend continuation trades.
  

Setup:

• Setups often provide stronger signals and may lead to more significant moves.
  
• Reversals should occur within 4 bars of setup signals
  

Completed Countdowns:

• Reversals should occur within 12 bars of completed countdowns