Signal System

Included within this section are descriptions of the BirbicatorPRO's Signal System and how it may be applied to varying types of traders.

Signal System

Overview

BirbicatorPRO is configured with several automated signals (alerts) that indicate potential trend reversal scenarios. The goal of the signal system is to provide warning of key changes in price action that may lead to changes in trading plans depending on each users trading plan.

Signals that have been incorporated into BirbicatorPRO can be configured within TradingView directly on any components within the system. In addition, BirbicatorPRO provides pre-defined signals that correspond to inherent trend change metrics we believe are significant.

For more information on built-in TradingView alerts refer to the "How to Set Alerts?" section.

BaseLine Trend Change Signal

The BaseLine Trend Change Signal is the core of the BirbicatorPRO system, as the BaseLine represents the primary metric for determining most other components. These signals represent a threshold in the main trend of BirbicatorPRO, and denote a bias change with respect to current price and the Birbicator BaseLine.

Users may enable the BaseLine Trend Change Signal from within BirbicatorPRO's option menu.

BaseLine Trend State Change Signals

ATR Signal

Contrary to typical ATR signals that are based on price falling or rising to what is considered to be a "Stop Loss" level, BirbicatorPRO ATR signals are defined as events where price breaches the BaseLine's ATR based "buffer zone" and then reverts back into the ATR buffer zone. Said simply, much like a Bollinger Band strategy based on price breaching an upper or lower band and then immediately reversing back within the band on the same candle, BirbicatorPRO"s ATR Signal uses the BirbicatorPRO's BaseLine as a basis for creating an ATR weighted "buffer zone" than can provide advanced notification of when price may reverse against the primary trend identified by BirbicatorPRO.

In the example below we see that several ATR signals were created when price failed multiple times to "follow-through" on breaking the BaseLine's defined level. Systematically, this would indicate that strong support was available at the level and could be construed as a basis to reinforce a "bullish" bias.

In the example above, we also can note that the prior "bearish" "ATR-" signal preceded the BaseLine "bearish" signal and could have provided a profitable early exit condition.

Take Profit (TP #1) - Overbought (OB) / Oversold (OS)

BirbicatorPRO's OB/OS signals can be defined as "traditional" take profit events given a defined trend that are based on overbought and oversold metrics that are continually calculated by BirbicatorPRO. Using BaseLine and OB/OS Take Profit signals together we see an example of how the signals taken together can provide a system for entering a long position, and then reducing the risk associated with the trade through reducing the entry trade size as the trend develops and generates OB/OS signals.

Take Profit (TP #2) - Trend Based

Similar to OB/OS signals, BirbicatorPRO also defines specific take profit events that are based on BirbicatorPRO's band levels. Depending on the trend, these signals provide advanced warning of price action that may or may not lead to a reversion.

Take Profit (TP #3) - Scalping Based

Scalping based signals are meant to provide entry/exit conditions that are more numerous than other take profit components of BirbicatorPRO, and can be used in concert with or independently as entry and exit signals depending on the user's strategy.

Divergences

BirbicatorPRO provides users with the ability to receive divergence alerts based on the BibicatorPRO Divergence system. Please refer to the "Divergence System" and "How to Set Alerts?" sections for more information.

Signal Tuning

Signal tuning within BirbicatorPRO can be accomplished several ways. In general, the user should always be aware of the "Trend Mode" selection and the timeframe of the asset being traded. Selecting a "Longer" or "Shorter" Trend Mode can provide a different perspective and may provide better fit for the assets volatility.

BirbicatorPRO does allow for specifically "tuning" one option as part of the initial release of the system. Tuning parameters are provided within BirbicatorPRO's options menu.

BaseLine Delta Signal Len

It is recommended that this option not be changed as it is specifically for a type of reversal signal that is also associated with the existence of other BirbicatorPRO metrics.

Enable Stoch TKD Filter [BaseLine Signal: Disable for Daily and Above]

By Default BirbicatorPRO's BaseLine Trend Change signals are governed/filtered by the Birbicator Stoch TKD oscillator. This configuration provides a mechanism to ensure that price momentum is confluent with the relative association of price against the BaseLine. Users may disable this option to receive BaseLine Trend Signals when price crosses the BaseLine without adhering to the momentum policies of the Birbicator Stock TKD oscillator.

NOTE: Disabling this option is recommended by not required to be disabled from High Time Frame charts (> than Daily) which can cause the signal to be latent as momentum on higher timeframes may take longer to build.

Stoch TKD Filter Level

BirbicatorPRO allows the user to increase or decrease the level of filtering provided by Stoch TKD with respect to generating BaseLine Trend Change signals. By Default, this option is set to a moderate level of 50. Decreasing the value will require "Less" momentum to actuate the BaseLine Change Signal, and Increasing the value will require "More" momentum to actuate the BaseLine Change Signal.

In general, the theory behind "tuning" this option is to align BirbicatorPRO with the user's trading philosophy and risk appetite. Disabling or lowering the Stoch TKD filter will provide "earlier" signals within the trend, however, may also lead to false signals on low Stoch TKD breakouts that end up reverting.

Stoch TKD Filter Level

BaseLine Trend Change Signal Impact

30

Faster Signals; Less Confirmation of Momentum

40

50

60

65

Slower Signals; More Confirmation of Momentum