The summary of ‘Saty Phase Oscillator Indicator Overview’

The video introduces the Saudi phase oscillator indicator, emphasizing its unique approach to trading by integrating various indicators into one package. The speaker discusses the indicator's development process, components like the Fibonacci grid and ATR EMA-based price oscillators, and the importance of compression signals for predicting market moves. They highlight how the indicator can identify momentum, mean reversion, and potential trade setups, using a three-color system to visualize momentum compression and expansion. The speaker also explores the significance of divergence, monitoring lower time frames for trend shifts, and key levels like the 21-day moving average for successful trading strategies. Overall, the video aims to provide traders with a versatile tool for effective analysis and decision-making in the financial markets.

00:00:00

In this segment of the video, the speaker discusses the Saudi phase oscillator indicator overview. They express gratitude to the beta testers and emphasize that the presentation is not financial advice. The speaker explains why they created the indicator, mentioning the benefits of using indicators in trading and their journey to develop a new system. They highlight the focus on being close to price, speed, and suitability for both short-term and long-term trades. The development process has been ongoing for about 16 months, involving late nights and discussions with others.

00:03:00

In this segment of the video, the speaker discusses the journey of refining a code to create a simple but effective indicator. They emphasize that the indicator is not meant to replace other favorite indicators like RSI or MACD but rather offers a unique approach by combining benefits from multiple indicators into one package. The speaker encourages users to understand how the indicator works before using it for trading. They introduce the oscillator signal and its components, explaining their inspiration from indicators like Kelner Channels and how they simplified and adapted concepts from these indicators into the new oscillator.

00:06:00

In this segment of the video, the speaker discusses using a simple moving average with upper and lower bounds based on ATR to identify momentum and mean reversion. They highlight the usefulness of range-based signals like Keltner channels and Bollinger Band compression for predicting potential reversals or market moves. The speaker emphasizes the importance of RSI and Stochastics for detecting divergences, strength, and weakness in the market, providing valuable insights for potential trend changes or trading opportunities. The speaker also mentions how their phase oscillator integrates similar signals without using RSI, offering a different approach to market analysis.

00:09:00

In this part of the video, the speaker discusses the use of technical indicators such as MACD crossover and phase oscillator in trading. MACD crossover is highlighted for confirming potential trends and price movements. The phase oscillator, utilizing a Fibonacci grid, offers similar results to MACD crossovers. The speaker emphasizes the goal of reducing the number of indicators on the screen for easier analysis. The phase oscillator includes ATR EMA-based price oscillators, Fibonacci grid, and a three-color system for viewing momentum compression and expansion. By combining these elements, the phase oscillator aims to provide benefits similar to other indicators.

00:12:00

In this segment of the video, the speaker discusses leveraging the 21 EMA and the Keltner Channel concept, using ATR away from an EMA to create an uncapped range-based signal. This signal can help identify extreme momentum and allow for action when momentum weakens. A smoothing technique is applied to the signal to show short-term trends, referred to as the “compass.” The Fibonacci grid is used to identify inflection points, support/resistance, and crossover signals for confirmation. The signal’s position within the Fibonacci levels can align with wickoff phases of accumulation, markup, distribution, and markdown. A three-color system on the oscillator is introduced to view momentum compression and expansion.

00:15:00

In this segment of the video, the speaker discusses how to use compression signals in trading. They mention that seeing compression followed by either green or red can indicate a directional move and expansion. The zero line on the chart indicates bullish or bearish momentum, with levels between 236 and -236 being a neutral or launch zone. The range between -100 and +100 is an accumulation zone, while values greater than 100 suggest extreme conditions that may lead to mean reversion or reversal. The speaker emphasizes using these signals for trade entries and watching for divergences in price for potential reversal signals.

00:18:00

In this segment of the video, the speaker discusses the oscillator signals, including red signaling weakness and green indicating strength. The strength is shown as green moving up and weakness as red moving down. They also mention magenta compression signals, emphasizing the importance of leveraging early signals for expansion. Compression signals are highlighted with a visible magenta label, signaling potential consolidation and an upcoming move. The segment concludes with a mention of the phase oscillator’s application on an SPX chart, along with the use of pivot ribbon and EMA for analysis.

00:21:00

In this segment of the video, the speaker discusses a cup and handle pattern that has been developing since October. They highlight a divergence on the oscillator that led to a reversal in price action, and emphasize the importance of spotting divergences at extreme signals. The speaker explains how divergences can lead to mean reversion trading opportunities, illustrating with examples of price making new highs while the oscillator makes lower highs, leading to mean reversion back to the 21 level. They recommend looking for accumulation or distribution zones for potential trade setups, and mention the significance of divergences on lower time frames for mean reversion strategies.

00:24:00

In this segment of the video, the speaker discusses how certain market movements led to a mean reversion on a higher time frame. They mention the importance of analyzing oscillators and divergence in identifying potential reversals. The discussion highlights the importance of monitoring lower time frames for indications of a larger trend shift. The speaker describes a specific example where compression signals and oscillator trends indicated a potential reversal, leading to profitable trades. The speaker also mentions the significance of monitoring key levels like the 21-day moving average and watching for signs of consolidation or distribution zones. Additionally, they touch on the importance of observing market leaders like Apple and the need for continued strength in the market for sustained upward movement.

00:27:00

In this segment of the video, the speaker discusses spotting divergences, compressions, and identifying accumulation or distribution in trading. They mention the tool they have developed to assist with mean reversions and reversals, emphasizing its versatility across various time frames. The tool is not intended to replace other indicators but aims to provide signals for effective trading. The speaker acknowledges the value of other indicators like Keltner channels and Bollinger Bands, mentioning that some benefits are unique to those indicators. They invite feedback on the tool and express their commitment to improving trading through tools like these. The speaker concludes with a message of sharing and improving trading strategies.