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Traded Index Options Program on the FTSE100.

Description of Chart A3.

The purpose of this screen shot is to demonstrate how the two charts on the same time base may be
presented together so that the Short term and Longer Term signals may be seen at the same time.
This may be used when either Buying or Writing Options to provide a greater level of confidence when both signals are in the same direction and thus in support.

The upper chart also shows the 'Support 'and 'Resistance' lines ,which are used in both Buying and Writing options , note the accuracy of these levels and when they are finally broken that the main signal either changes direction immediately or there is a consolidation signal for a short while before the change in direction is established, as occurred in January. Notice also ,in this instance, that the two signals were in support of each other within two days.

The 'RH Paint Bar Indicator' ,which is based on different concepts, has also been applied to the upper chart and demonstrates how the price bar changes colour to give an additional warning of a possible change in direction. The change in colour of the price bar is not always  followed by a change in the main signal due to prevailing conditions but due consideration must still be given to it.  

The use of these indicators is described together with explanatory diagrams in the system documentation.

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