The xm7 indicator

Feb 20, 2010
I will be updating the site with newer information. Currently the xm7 indicator is no longer used to make trading decisions. The xm7 indi can be used as an alert that provides support to decide if there is a potential entry. So stay tuned for an update. In the meantime I am going to leave the rest of the webpage intact for FYI purposes.

Below you will find a set of indicators that have helped me to detect decent entries. The main approach is based on the famous trader Jesse Livermore. Three key factors that I picked up from Livermore was the pivotal continuation point, the path of least resistance, and his money management. The path of least resistance is basically the direction the market is allowing an instrument to move. The pivotal continuation point is an entry point that is detected once you determine the path of least resistance. Add to this the study of Volume Range (or spread) analysis and you have a potent combination. I am still learning the Volume Analysis portion so more details to come later.

So how does this equate to the xm7 indi? The path of least resistance can be determined by looking at the last major xm7 signal and the overall direction of the market. The continuation point would then be the next minor signal that is in the direction of the major xm7 signal.
Now, you must realize that you have to WAIT! When u see a major xm7 signal WAIT. Wait until price has moved considerable in that direction then WAIT for that 1st minor xm7 signal to give u an entry. Just look at the past (it will repeat) and you will notice that during an established trend that you could of easily entered any of the minor xm7 signals and got plenty of pips.

The xm7 indi inputs now only consist of turning on and off email, popup window, alerts. The alerts are based on a crude calculation fo the range of candle. I was trying to quantify some activity.


Info on Jesse Livermore

I've added the following links for those of you interested in getting some info on Jesse Livermore. The sites contain good info and some of the basic ideas that Mr Livermore provided. Check them out:


These videos provide the basic information of the indi inputs, horizontal/trend line alerts, and some of trade examples. I left these videos here for info purposes only. The approach that is now used is different. If u have any more questions let me know. if you have problems viewing the videos you can download them direction(see below).

Video downloads

The following are direct links to the video files. They are in flv(flash) format. So you will need a flash player to see them. I recommend you google VLC, good multi-format video viewer


You know where to find me..