MASSIVE Improvements Made for CPS 2.0

Our Chart Pattern Systems Module (CPS) is the most powerful Technical Analysis product in the world. Customers are continually telling me that this plug-in is helping them make consistent profits in any type of market.

With CPS, it’s easy to find profitable Trend Line Breaks, Support Bounces, Retracements, Reversals, and more. Just activate the Chart Pattern Strategies, and OmniTrader will identify pattern events as Trading Signals, as shown below.

Thirteen powerful strategies are included (see pages 6-7). You can activate one or all of them – OmniTrader’s voting process will fire “voted” signals according to your preference. No other product on the planet gives you this kind of flexibility – or firepower.

For Version 2.0, we added several powerful new features that increase the profitability of the plug-in:

• Candle Pattern Trading Systems & Confirmation
• Classic Long Term Pattern Trading Systems
• New Mechanical Strategies

Each of these innovations has improved the profitability of our Chart Pattern approach to trading – and in some cases, dramatically improved it.

Our CPS 2.0 Story begins with Candle Patterns. We’ve had them in OmniTrader for a long time, but for Version 2.0 we improved performance and added some new ones highlighted by certain experts in the field. With CPS 2.0, you get 16 new Candle Pattern Systems. But that’s just the beginning. We took these Systems and used them to confirm Signals for greater accuracy! Read the whole Confirming with Candle Patterns story further on..

As great as the new Candle Confirmation Systems are, we were just getting warmed up! We also built and tested several Classic Long Term Patterns, including Head and Shoulders and Double/Triple Tops and Bottoms. These Systems are generating amazingly good Longer Term Investment Grade Signals. Read the full story on these Patterns and Systems further down.

But the biggest news surrounding CPS 2.0 is the new Mechanical Strategies included with it! By “Mechanical” we mean the Strategies are showing profitable trading characteristics in 100% mechanical trading. We tested them over multiple time frames, and they are showing outstanding results. Where else can you get mechanical strategies included with a software upgrade? Nowhere! Read the complete Mechanical Strategy article further down.

“I am currently running all the CPS strategies together and my performance summary is boasting a 95% hit rate under all trades- and a whopping 100% hit rate under the long only! It’s hard to beat accuracy like that!” – Jeff Hammer

Confirming with Candle Patterns

As Candle Pattern expert Steve Nison says, “Candlestick charting can be used to improve returns and help decrease market risk.” We couldn’t agree more! Candle Patterns identify very short term imbalances between buyers and sellers. When used to confirm signals, outstanding trading opportunities are identified.

For CPS 2.0, we created 16 new Candle Pattern Systems (see list below). These are “new and improved” over prior candle patterns provided with OmniTrader – we tested them over many years of stock market data to tune the parameters of each one for optimal results. We created two new strategies that use the new systems – CPS Reversal and CPS Continuation.

For the CPS Reversal Strategy, we “confirm” Voted OmniTrader Signals with a Reversal Candle Pattern Signal. Reversal Candle Patterns are short term (1-3 bar) patterns that indicate Short Term buying or selling pressure, such as Engulfing Lines and Doji Stars. The CPS Reversal Strategy fires a Signal on the Vote Line (and in the Focus List) when a Voted Signal and a Reversal Candle Pattern Signal fire at the same time. An example is shown above. The CPS Continuation Strategy works in a similar manner, except it is confirming Voted Signals with Continuation Candle Pattern Signals.

Here we see a Support Level Bounce confirmed by a bullish Harami Candle Pattern. The CPS Reversal and Continuation Strategies confirm Voted Signals with Candle Patterns.

Long Term Pattern Systems

For CPS 2.0, we created several new Long Term Pattern Trading Systems. These Pattern Events fire Signals that tend to forecast moves lasting weeks or even months, because they show MAJOR shifts in investor psychology.

The patterns aren’t new – they’ve been used by traders for many decades. But our implementation of them is very new. There are many ways to “find” a Head and Shoulders pattern. Our scientists worked on the best way to identify a break of the Neck Line, and extensively tested performance on the Signals. Frankly, we have been continually amazed at how well these patterns perform.

Head and Shoulders

The Head and Shoulders pattern is identified by a “head” and two “shoulders” on either side, each of which is lower than the peak formed by the head. A Signal is generated as price falls through the line formed across the base of the Shoulders.

Double Tops and Bottoms

Another classic pattern – Double Tops and Bottoms form when price bounces off a price level for the second time. While fairly rare, these bounces are very tradeable – investors will come in and buy the stock when they see it reversing off of this key level.

Triple Tops and Bottoms

While VERY rare, Triple Tops and Bottoms can be even more powerful than Doubles. By the time the security bounces off a price level for the THIRD time, investors are ready to jump in with both feet.

“Mechanical” Profitability

Using these new Pattern Systems, we wwweloped a new mechanical strategy called CPS Position Trading. This Strategy is showing outstanding profitability in our testing, demonstrating how powerful these longer term patterns are.

Profitable MECHANICAL Strategies!

There aren’t many places where you can acquire a truly mechanical system or strategy — at ANY price. With CPS 2.0, you get THREE! What do we mean by “mechanical?” These Strategies have been testing out profitably with purely mechanical trading. With each example of the strategies, we are showing performance numbers on the S&P 100 list over the prior year. We have rarely been able to achieve mechanical Hit Rates above 60%, but all of these Strategies achieve that performance! The value of CPS 2.0 is pretty incredible.

CPS Pattern Signals

The Pattern Signals Strategy was built to achieve mechanical profitability. The Strategy was first released with CPS last year, and has held up perfectly. The Strategy is testing at over 67% accuracy with mechanical profitability for each of the past 5 years on the S&P 100!

CPS Swing Trading NEW in 2.0

CPS Swing is designed to trade Swing moves in the market using The 7 Chart Patterns. For this Strategy, individual patterns are “tuned” for Short Term performance. Both Long and Short Signals are generated, and Mechanical Exits are defined in the Strategy.

CPS Position Trading NEW in 2.0

CPS Position Trading uses Longer Term patterns such as Head and Shoulders and Double Tops and Bottoms to provide an “investment” approach to trading. The Strategy generates Signals that have also been showing mechanical profitability!

In addition to the three Mechanical Strategies, you also receive 10 Pattern Signal Strategies designed to bring trading opportunities confirmed with Pattern Signals to your attention:

10 PATTERN SIGNAL STRATEGIES INCLUDED

CPS Consolidation Strategy
The CPS Consolidation Strategy fires Breakout (or “continuation”) Signals after a consolidation forms.

CPS Fibonacci Retracements
Fibonacci Retracements are a phenomena whereby charts typically reverse after giving up or advancing 32%, 50%, or 62% of a prior move.

CPS Gap Strategy
Gaps are sudden price movements that leave a “gap” or hole between the prior day’s Closing price and the current day’s Opening price.

CPS Saucer Strategy
As the stock fl attens out from a falling period and starts up, individuals will buy it, providing fuel for a rally fire!

CPS Support & Resistance
Support and Resistance are classic chart levels where buyers and sellers come in to halt the advance or decline of a stock.

CPS Trend Line Bounces
Trend Lines are one of the best patterns to trade. As price approaches a Trend Line and reverses to the upside, more buying usually comes in.

CPS Trend Line Breaks
Similar to Support and Resistance Breaks, when price goes through a Trend Line, the market will react by buying or selling in the direction of the break.

CPS Volume
CPS Volume looks for key volume patterns — Volume Climaxes and Volume Trend, helping to identify Reversals and key Break Out moves.

CPS Reversal NEW in 2.0
CPS Reversal fires a Signal on the Vote Line (and in the Focus List) when a Voted Signal and a Reversal Candle Pattern Signal fire at the same time.

CPS Continuation NEW in 2.0
Similar to CPS Reversal. We confirm the Continuation Patterns with Continuation Candle Patterns. CPS Reversal and CPS Continuation work very well together.