Introducing CLFLOW

CLFLOW trades the oil CL market in a conservative fashion and is built on two chaos indicators filtering each other in the most extraordinarily natural way with no pre-determined artificial stop-loss/profit-targets.  All exits these are determined dynamically in real-time    The system needed no optimization whatsoever and is at completely "as is" natural settings and shows the characteristic chaos systems step ladder like horizontal and vertical movement performance curve   It is not a very active system with only a handful of trades per month with lower drawdowns potential

CLFLOW : Built from the Chaos Levels and Chaos Wave indicators- notice that it trades the Chaos Wave exit and entry, Chaos Wave often provides incrediblely early entries an emerging trend

  

CLFLOW: Hypothetical Performance curve like a step ladder or inverted zig-zag shapes is typical of chaos systems, in this case completely natural not optimized in any way it just falls out that way is remarkable

Big Picture: Unchanged

Chaos indicators are universal working on all types of chart time-frames and when applied to the SP EMINI ES Futures daily chart provides big-picture insights of how the market is shaping up for the next few months   There are several indicators on the chart below but 2 discussed in this post are going to tbe mid-point fulcrum and the chaos "four hounds" indicator

The ESLIGHTNING system relies on price cross-overs of the Chaos mid-point fulcrum indicator- shown mapped on the Daily chart here the Yellow line in the middle of the chart hanging at 1543.50    Since the current price is over 2100 there is a 500 point difference between the mid-fulcrum the current price.   However the two attract each other and do not long tolerate such great distances and in fact often prices crosses over or under the fulcrum- and therefore from here the price must move down to meet the fulcrum and the fulcrum must move up as well to meet price is the only way to resolve it  

So the mid-point fulcrum relative position to current price is suggesting a drop of price to say at least 1900 is lurking in the background like a Democales sword over any upside move is going to have to fight this intrinsic downward pressure going forward.

Turning to the Chaos four hounds indicator, the positions have not significantly changed since previous big picture ES Emini post  The key is the yellow hound crossing/nearing the purple and though the yellow line is shaping in that upward direction has not yet intersected the purple.

To sum up then be very careful of any Long positions; look for Short entries with targets around 100-200 PT profit target and 30-50 PT stop-loss but be patient for some downward shaping confirmation from the Chaos Hounds indicator   Really aggressive folks can buy some SPY 200 Strike June/July PUTS right here and now are so cheap and the potenial reward ratio is quite good