The Compass Line has crossed the RSI Line (either over or under) confirming direction of the trend within the band in use (Arbitrage, Novice, Intermediate, Advance, Apocalypse). As you can see in the picture below: the Green Triangle indicates the beginning of a new buy-trend, and the Red Triangle indicates the beginning of a new sell-trend. This feature is enabled by choosing 'Show Band exits/ Show exits'. 

Candle colors are based on the  navy blue compass line within the arbitrage band indicator.  This function is enabled by 'Show Candle Colors'. 

Blue: The compass has a negative slope, indicating a sell trend is in progress.

Magenta: only appears when the RSI Line is sitting within the UDZ and the compass line has crossed under the RSI Line, this candle indicates a high probability of a sell trend. 

White: The slope of the compass has not changed. 

Yellow: The compass has a positive slope, indicating a buy trend is in progress.

Green: Only appears when the RSI Line is sitting within the LDZ and the compass line has crossed over the RSI Line, this candle indicates a high probability of a buy trend. 

-Top green section means buys are trending within a sustainable uptrend means sells are trending within a sustainable downtrend. 

- When the trend line pokes out of the top green area (into white) it means the uptrend is over bought and must correct, creating a brief downtrend.

- Z Line is the average of all the bands' probability. It gives you an idea of the overall trend. 

Aqua '$' - A window of Profit is opening up

       - When the Atlas band is green, aqua $ means it could be the end of that buy trend

       - When the Atlas band is red, aqua $ means it could be the end of that sell trend

Red '$' - means it is the potential end of a downtrend 

        - Could be a potential bottom- extremely risky entrance for a BUY

Green '$'- means it is the potential end of an uptrend

        - Could be a potential top- extremely risky entrance for a SELL

Atlas is the primary indicator for alerts within the arbitrage bands trading system.

It is comprised of: 

- Multi Time Frame indicator

- Top Bots

- Band Exits

- Candle Colors 

- Windows of profit 

- Highs

- Lows

- High Lows

- Low Highs

The Arbitrage Band System is comprised of 9 distinct bands, each reflecting large time frames. In order, they are the Money Band, Scalp Band, Compass Band, Arbitrage Band, Novice Band, Intermediate Band, Advance Band, and Apocalypse Band. Each band contains a Mean, six standard deviations(3 up, 3 down), Upper and Lower Danger Zones, RSI Line, Compass Line, and a Momentum Line.

A red candle in which the daily movement is negative, and the daily movement has a range of 1-3 cents with a long tail both above and below.

A time in which the previous day consisted of a green candle that was engulfed the following day with a larger red candle. 

A time in which the previous day consisted of a large green candle and the following day resulted in a small red candle that is contained within the range of the previous days movement. 

A single day in which the low of the day is the closing price represented by a red candle and the body of the candle is larger than the tail.

A day in which the High of the day is the opening price and the closing price of the candle is near the low of the day. The body of this candle is larger than its lower tail.

A red candle consisting of a medium sized body with a long high and low tail. 

Setup

Downtrend

Psychology

A downtrend shows further strength by gapping down on the open and driving the price lower to close as a red candle. This is followed by a pause as the bulls attempt to force the price up, but are unable to close the gap. Continued trading below the gap shows the strength with the bears. 

Confirmation

The price continues to trade below the gap, and preferably below the green candle's real body.

Setup

Downtrend

Psychology

The bears domination of the bulls is evident within the downtrend by the formation of the first long red candle. The price then pauses, forming 2 or more small candles within the range of the first candle. The bulls are not able to force the price above the high of the original candle, and are then overcome once again by the bears who push the price downwards with a second long red candle closing below the first candle. 

Confirmation

The price trades below the body of the second long red candle. 

- BEARISH two candle Reversal Pattern. 

- 1st candle has a smaller GREEN real body. 

- 2nd longer RED candle completely engulfs the 1st candle body. 

Setup

Uptrend 

Psychology

The bulls continue the uptrend by gapping the price up at the open and driving it to new highs. The bears come back in force though and drive the price back down. A red Shooting Star is more bearish the a green Shooting Star, due to the bears ability to force the close of the candle below the opening price. 

Confirmation

The Price trades below the body of the Shooting Star candle. 

Setup

Uptrend 

Psychology

The uptrend initially appeared that it would continue strongly as the price gapped up at the open, however the bears fought back strongly driving the price convincingly lower. Although the bulls were able to resist the downward pressure, this is only temporary. A red Hanging Man is more Bearing than a green Hanging Man, due to the bulls inability to force the close of the candle above the opening price. The Hanging Man is not considered as bearish as the Shooting Star due to the fact that the bulls were able to fight back to some degree. 

Confirmation

The price trades below the body of the Hanging Man candle. 

Setup

Uptrend 

Psychology

This is a very bearish reversal pattern in which the bears inflict a rapid and decisive victory over the bulls. The uptrend continues via a green bodied candle. The opening of the next candle ideally gaps upwards (continued sign of bullishness) however the bears then drive the price down to close the candle below the open of the green bodied candle. The name 'bearish engulfing' is due to the fact the the real body of the red candle completely engulfs the real body of the green candle. 

Confirmation

The price trades below the body of the red candle. 

Setup

Uptrend

Psychology

The uptrend continues via a green bodied candle. The opening of the next candle ideally gaps up (continued sign of bullishness) however the bears then drive the price back down showing renewed strength and a potential change of trend. The bears win the battle closing the candle in the lower half of the green candle's body. Note that this is not as bearish as the bearish engulfing pattern, in which the bears were able to drive the price lower to close below the first candle's real body. 

Confirmation

The price trades below the real body of the red candle. 

Setup

Uptrend

Psychology

The bulls continue the uptrend by forming a long green bodied candle. The gap opening up to the second candle initially appears bullish, but the small body of the star shows a possible loss of momentum. The bears the re-enter the market in force, ideally gaping down from the star, and driving price to close well within (or below) the first candle. The lower the close, the more decisive the victory of the bears over the bulls. 

Confirmation

The price trades below the body of the long red candle. 

Setup

Uptrend 

Psychology

The upper extreme of the shadows represents area of resistance. Bulls were not willing to buy above this price, so the bears returned in force to drive the price back down. The Tweezer Top forms when two or more candle's upper shadows form at same level, confirming the strength of this resistance, and the likelihood that the uptrend will either pause or reverse to a downtrend. 

Confirmation

The price trades below the level of resistance. Price trading below the body of the Tweezer Top candles is more bearish, and likely to indicate a reversal of trend rather than a change to consolidation. 

A time in which the previous day consisted of a large red candle and the following day resulted in a small green candle that is contained within the range of the previous days movement.

A single day in which the high of the day is near the closing price represented by a long green candle. The body of the candle is larger than its Upper tail.

A green candle consisting of a medium sized body with a long high tail and low tail. 

Setup

Uptrend

Psychology

An uptrend shows further strength by gaping up on the open and driving price higher to close as a green candle. This is followed by a pause as the bears attempt to force the price down, but are unable to close the gap. Continued trading above the gap shows strength with the bulls. 

Confirmation

The price continues to trade above the gap, and preferably above the red candle's real body. 

Setup

Uptrend

Psychology

The bulls domination of the bears is evident within the uptrend by the formation of the first long green candle. Price then pauses, forming 2 or more small candles within the range of the first candle. The bears are not able to force price below the low of the original candle and are then overcome once again by the bulls who push price upwards with a second long green candle closing above the first candle. 

Confirmation

The price trades above the body of the second long green candle. 

- BULLISH two candle Reversal Pattern. 

- 1st candle has a smaller RED real body.

- 2nd longer GREEN candle completely engulfs the first candle body. 

Setup

Downtrend 

Psychology

The bears continue to downtrend by gapping the price down at the open and driving it to new lows. The bulls come back in force though and drive the price back up. A green Hammer is more bullish then a red Hammer, due to the bulls ability to force the close of the candle above the opening price. 

Confirmation

The price trades above the Hammer candle's real body. 

Setup

Downtrend 

Psychology

The downtrend initially appeared that it would continue strongly as the price gapped down at th open, however the bulls fought back strongly driving the price convincingly higher. Although the bears were able to resist the upward pressure, this is only temporary. A green Inverted Hammer is more bullish than a red Inverted Hammer, due to the bear's inability to force the close of the candle below the opening price. The Inverted Hammer is not considered as bullish as the Hammer, due to the fact that the bears were able to fight back to some degree. 

Confirmation

The price trades above the body of the Inverted Hammer candle. 

Setup

Downtrend 

Psychology

This is a very bullish reversal pattern in which the bulls inflict a rapid and decisive victory over the bears. The downtrend continues via a red bodied candle. The opening of the next candle ideally gaps down (continued sign of bearishness) however the bulls then drive the price upwards to close the candle above the open of the red bodied candle. The name 'bullish engulfing' is due to the fact that the real body of the green candle completely engulfs the real body of the red candle. 

Confirmation

The price trades above the body of the green candle. 

Setup

Downtrend

Psychology

The downtrend continues via a red bodied candle. The opening of the next candle ideally gaps down (continued sign of bearishness) however the bulls then drive the price back up showing renewed strength and a potential change of trend. The bulls win the battle closing the candle in the upper half of the red candle's body. Note that this is not as bullish as the bullish engulfing pattern, in which the bulls were able to drive the price higher to close above the first candle's real body. 

Confirmation

The price trends above the real body of the green candle.

Setup

Downtrend 

Psychology

The bears continue the downtrend by forming a long red bodied candle. The gap opening down to the second candle initially appears bearish, but the small body of the star shows a possible loss of momentum. The bulls then re-enter the market in force, ideally gaping up from the star, and driving price to close well within (or above) the first candle. The higher the close, the more decisive the victory of the bulls over the bears. 

Confirmation

The price trades above the body of the long green candle. 

Setup

Downtrend

Psychology

The lower extreme of the shadows represents an area of support. Bears were not willing to sell below this price, so the bulls returned in force to drive the price back up. The Tweezer Bottom forms when two or more candle's lower shadows from at the same level, confirming the strength of this support, and the likelihood that the downtrend will either pause or reverse to an uptrend. 

Confirmation

The price trades above the level of support. Price trading above the body of the Tweezer Bottom candles is more bullish, and likely to indicate a reversal of trend rather than a change to consolidation. 

Setup

A trending market- an uptrend for a bearish reversal, or a downtrend for a bullish reversal.

Psychology

Bearish Harami- Often found at market top, the uptrend continues with the bulls driving the price higher to complete a green candle. The second candle shows indecision as the price then stalls. Neither the bulls nor the bears are able to dominate, resulting in a small candle of either color contained within the first body candle. This indecision often precedes a change to sideways congestion or a reversal of the trend. 

Confirmation

The price trades above the pattern for a bottom reversal, or below the pattern for a top reversal. 

Setup

A trending market- an uptrend for a bearish reversal, or a downtrend for a bullish reversal.

Psychology

Bearish Harami Cross- Often found at a market top, the uptrend continues with the bulls driving price higher to complete a green candle. The second candle shows indecision as the price then stalls to form a dojo. Neither the bulls nor the bears are able to dominate. This indecision often precedes a change to sideways congestion or a reversal of the trend. 

Bullish Harami Cross- Opposite of the above, found a bottom reversal. 

Confirmation

The price trades above the pattern for a bottom reversal, or below the pattern for a top reversal. 

Condition 1: Stock is greater than Strike Price

- Re-sell option

- Exercise option

- Let the option expire

Condition 2: Stock is less than Strike Price 

- Option purchase investment will lose value, may be able to re-sell and capture time value premium, but doubtful 

Condition 1: Stock is greater than Strike Price

- Option Purchase investment will lose value, may be able to re-sell and capture time value premium

Condition 2: Stock is less than Strike Price 

- Re-sell option

- Exercise option 

- Let option expire 

The graphical representation of the equities movement on a given time frame.

This tool is used to display the projected direction an equity will follow in the near term. It is denoted by a navy-blue line on the chart.The line’s navy-blue color is the standard blue color no matter what band you are viewing. The compass line is used to make almost every decision within the Arbitrage Band Trading System including the color of every single candle.

There are 2 Danger Zones for each band: Upper and Lower Danger Zones. When the RSI Line is in an Upper Danger Zone the Up Trend is in danger. When the RSI Line is in the Lower Danger Zone the Down Trend is in danger. May be abbreviated as UDZ (Upper Danger Zone), or LDZ (Lower Danger Zone).

A time in which the previous day consisted of a green candle and the following day resulted in the stock price increasing and then falling below the previous days closing price. 

- BEARISH two candle Reversal Pattern.

- 1st candle has a GREEN real body. 

- 2nd RED candle opens above, and closes in the lower half of the 1st candle body. 

A Deflection Point is created when the RSI Line of the band has reached either the bottom of the Lower Danger Zone (LDZ), or the top of the Upper Danger Zone (UDZ), and has run out of room. Since the RSI Line may never leave the band, it “deflects” signaling either an upturn or downturn in the trend is imminent.

• • ·    

- BEARISH 2 Candle Continuation Pattern 

- Downtrend gaps down to a RED candle. 

- Followed by a GREEN candle opening inside and closing above the red candle's real body. 

- BEARISH three candle Reversal Pattern. 

- 1st candle has a long GREEN real body. 

- Market gaps up to 2nd small body candle (either color) 

- 3rd candle has a RED real body, ideally gaping down from the star (2nd candle). 

- BEARISH Continuation Pattern

- Long RED candle

- Followed by 2 or more short candles (ideally GREEN), which are contained within the body of the first red candle. 

- Followed by another long RED candle closing below the 1st candle. 

- BULLISH single candle Reversal Pattern. 

- Market ideally gaps down to Hammer candle.

- Color can be RED or GREEN. 

- Lower Shadow is at least two times the size of the real body. 

- BEARISH single candle Reversal Pattern

- Market gaps up to Hanging Man candle

- Color can be RED or GREEN 

- Lower Shadow is at least 2 times the size of the real body 

- BULLISH or BEARISH two candle Reversal

- 1st candle continues the trend direction

- 2nd candle real body is contained within the 1st candle real body. This candle may be either GREEN or RED.

- BULLISH or BEARISH two candle Reversal Pattern.

- 1st candle continues the trend direction 

- 2nd candle is a Doji, and is contained within the 1st candle real body. 

A Higher High is denoted by HH and is found within the Atlas indicator. Seeing a HH means the buy trend has a high probability of reversing. So taking profit here is not a bad idea.

A Higher low is denoted by HL and is found within the Atlas indicator. Seeing a HL means the sell trend has a high probability of reversing. Taking profit here is not a bad idea. This new low is higher than the previous low and indicates the down trend is weakening.

- Bullish Single candle Reversal Pattern.

- Market ideally gaps down to Inverted Hammer candle. 

- Color can be RED or GREEN 

- Upper Shadow is at least 2 times the size of the real body. 

The textbook definition of “leverage” is having the ability to control a large amount of money using very little of your own money and borrowing the rest. For example, to control a $100,000 position, your broker will set aside $1,000 from your account. Your leverage, which is expressed in ratios, is now 100:1. You’re now controlling $100,000 with $1,000.

This setting makes sure that you are always trading with the longer-term trend. Best practice for this setting is to always put it on a timeframe higher than your Investor Settings. This setting will enable or disable the pair direction (buys or sells) based on the timeframe that you choose. Changing this setting will impact your sensitivity to the drawdown allowed in your account. Higher timeframes allow for more drawdown while lower timeframes allow for less drawdown. This setting will never settle a position for a loss.

A Lower High is denoted by LH and is found within the Atlas indicator. Seeing a LH means the trend buy has a high probability of reversing. So taking profit here is not a bad idea. This new high is lower than the previous High. 

A Lower low is denoted by LL and is found within the Atlas indicator. Seeing a LL means the sell trend has a high probability of reversing. Locking some profits is recommended.

A tally of all stocks based the probability on what they did at this dollar amount in the past.

This line is used to gauge how fast an equity is moving in contrast to Compass Line. It is denoted by a red line on the chart. The red line always follows the compass line. If the momentum line is on top, the trend is negative.The line’s red color is the standard  color no matter what band you are viewing. 

- BULLISH three candle Reversal Pattern

- 1st candle has a long RED real body. 

- Market gaps down to 2nd small body candle (either color) 

- 3rd candle has a GREEN real body, ideally gapping up from the star (2nd candle). 

No Trend detected within the Arbitrage or the Apocalypse Band.

- BULLISH two candle Reversal Pattern. 

- 1st candle has a RED real body. 

- 2nd GREEN candle opens below, and closes in the upper half of the 1st candle body. 

Pip stands for "price in percentage" and is the unit of measurement to express the smallest change in value between two currencies.

You can set a point spread tolerance to prevent overpaying to get into a trade. If an alert fires and the point spread is higher than your tolerance setting, ATA will ignore the alert and not enter you into that position. The default setting is 5 pips, but you can adjust this value.

Arbitrage Trade Assist uses the Portfolio Risk Allocation Yield (PRAY) setting to employ best practices for risk management. Your total risk size will be calculated as a percentage of your account balance. The default setting on the Basic Assist Plan is to have 1.5% margin positions, which means up to sixteen active positions at any given time.

Both the Apocalypse Band and the Arbitrage Band are in the LDZ, and the BUY signal has been confirmed within the Arbitrage Band.

A relative bottom is denoted by a black dot and is found within the Atlas indicator. Seeing a black dot indicates that this is the nearest lowest low within X number of Candles. The number of candles required to trigger this alert changes when the band setting is changed within the Atlas indicator. This is also enabled by the 'Show Top Bot' component. 

A relative top is denoted by a yellow dot and is found within the Atlas indicator. Seeing a Yellow dot indicates that this is the nearest highest high within X number of Candles. The number of candles required to trigger this alert changes when the band setting is changed within the Atlas indicator. This can be enabled by choosing 'Show Top Bot'. 

- BULLISH Continuation Pattern 

-Long GREEN Candle 

- Followed by 2 or more short candles (ideally RED), which are contained within the body of the first green candle. 

- Followed by another long GREEN candle closing above the 1st candle. 

Arbitrage Trade Assist uses the Risk Limit to determine how much money to risk in the market in total. By default, the system will use our standard 25% threshold, however, if you determine that you want to risk more or less, this is the setting to change.  Caution: Setting a Risk Limit greater than 25% could potentially pull you into a margin call. Watch your account and risk closely!

The black line within the Arbitrage Band is the RSI Line. The most important concept to remember is this: regardless of the band in use, the RSI Line may never leave the band. It may travel to the top of the band and the bottom, but it will never leave the confines of the band. The RSI Line color will vary depending on the band you are viewing: Arbitrage Band=Black, Novice Band=Orange, Intermediate Band=Blue, Advance Band=Purple, Apocalypse Band=Fuchsia.

This trade strategy buys or sells in small increments instead of one big order or position. The advantages of this feature is to allows the trader to open a smaller position and increase the position size as the trade progresses in their favor. Using this feature will further reduce the risk on any new positions once the feature is enabled. The default scaling value is 50%. Remember that scaling will give smaller positions which means less drawdown but also smaller profits. This setting does not affect previous open positions. Note: If you have scaling of 33% or less, you should probably use Enforce Take Profit (with Take Profit Goals below) because of the broker fees to enter and exit trades.

Condition 1: Stock greater than Strike Price

- Obliged to sell stock if assigned

Condition 2: Stock is less than Strike Price

- Let option expire and capture entire premium as profit, combine with stock purchase

Condition 1: Stock is greater than Strike Price

- Let option expire and capture entire premium as profit

Condition 2: Stock is less than Strike Price 

- Obliged to buy stock if assigned

• - BEARISH single candle Reversal Pattern
• - Market gaps up to Shooting Star candle
• - Color can be RED or GREEN 
• - Upper Shadow is at least 2 times the size of the real body. 

Shows all equities where the 50 Day moving average has intersected the 100 Day moving average.

Color

- The color is generally displayed as green and red candles (or white and black candles). 

- Green candles are bullish, closing higher than the open. 

- Red candles are bearish, closing lower than the open. 

Body Size 

- The body size represents the degree to which the bulls overcome the bears (green candle) or the bears overcome the bulls (red candle). 

- A large body shows increased commitment. 

- A small body shows reduced commitment.

Range

- The range of the candle is the distance from the high to the low, and represents the volatility of the price during the trading season. 

-A wide range shows increased volatility. 

- A narrow range shows reduced volatility. 

Shadow Location

- Shadows above the real body show rejection of higher prices (selling). 

-Shadows below the real body show rejection of lower prices (buying). 

The stock has closed at its lowest point of the day for three days in a row. 

-BULLISH Pattern, identifying a Support Level.

- 2 or more candles with the LOW point achieving the same level. 

- Candles can be either color. 

- BEARISH Pattern, identifying a Resistance Level 

- 2 or more candles with the HIGH point achieving the same level. 

- Candles can be either color. 

- BULLISH 2 candle Continuation Pattern

- Uptrend gaps up to a GREEN candle.

- Followed by RED candle opening inside & closing below the green candle's real body.