Dynamic Trader Software Example – Sept.

1999 - Page1

Dynamic Trader’s Time Bands

Dynamic Trader’s Time Bands

Time Bands is a new routine in Dynamic Trader Version 3. DT3 allows the user
to quickly determine the recent time rhythm of a market and enter the time counts
in a table that may be used as long as that time rhythm continues. The Time Band
routine takes the same approach as the Time Rhythm Zone routine that has been
included in the program since Version 1 except the new Time Band routine is
more flexible for short-term analysis and trading strategies.
If you are not familiar with the Time Band approach to projecting high-
probability periods for trend reversal tops and bottoms, go to this month’s Traders
Education Tutorial by clicking here then return to this page.
Here are the steps using DT3 to set-up the Time Band projection routine:
1. Mark off a recent sequence of high or low pivots. DT3 will show you the
bar counts between each pivot.
2. Note the shortest and longest bar count.
3. Enter the bar count range in the Time Band table.
4. If projecting the Time Band target for the next low, place the cursor on the
most recent pivot high.
5. A Time Band bar and the actual beginning and ending dates of the Time
Band range will be displayed in the indicator window.
6. Since the Time Band counts have been saved to a table, the Time Bands
may quickly be projected from any future high and low. The recent time
rhythm will usually continue until the major trend of the market changes or
accelerates.

The chart on the following page shows the Time Band projections for a recent
period for bonds.

Copyright 1999, Dynamic Traders Group, Inc. – www.dynamictraders.com

 Dynamic Trader Software Example – Sept. 1999 - Page2

Dynamic Trader’s Time Bands

Below is the Time Band Table. Unfortunately, the screen capture of the table
could not be reduced to properly fit on the Web page so you will have to scroll
side to side to see the whole table.
To keep things simple for this example, only the low-low counts have been
included. The user may also enter the high-low counts. For more information on
how to use the low-low and high-low counts to project the overlap period, see the
Time Rhythm Zone section in the Dynamic Trading book.
As long as the market continues the time rhythm, all a DT3 user has to do is
check on which row in the table is applicable and DT3 will place the Time Band
in the window along with the beginning and ending dates.

Copyright 1999, Dynamic Traders Group, Inc. – www.dynamictraders.com

 Dynamic Trader Software Example – Sept. 1999 - Page3

Dynamic Trader’s Time Bands

Time Bands are most effective for relatively short-term cycles. Time Bands may
be used as part of a short-term trading strategy or as set-ups to enter in the
direction of the trend for longer term trades.
The chart below shows the low-low Time Band on bond 80-minute data.

Copyright 1999, Dynamic Traders Group, Inc. – www.dynamictraders.com

 Dynamic Trader Software Example – Sept. 1999 - Page4

Dynamic Trader’s Time Bands

The new Time Band routine was developed for DT3 as a quick and easy method
to project the high probability time zones for short-term highs and lows. The Time
Band routine was influenced by Walter Bressert's work who uses a similar
method in his trading approach of cycles and oscillators. For more information on
Walt Bressert, go to www.walterbressert.com. The main difference between how
Walt uses Time Bands and we use them in Dynamic Trader is we use the actual
time rhythm of the most recent market activity rather than average cycle-bands
calculated from long term historical data. Followers of Walt’s work who use
Dynamic Trader Version 3 may enter and save his cycle-band ranges in the Time
Band table.
The Time Band routine in Dynamic Trader Version 3 is another example of how
Dynamic Trader provides the most complete and flexible time analysis and
trading strategy routines and reports of any technical analysis program.

Return Next Month To See How We Use Time Bands To Enter Trades
Why is the Time Band placed in the indicator window? Next month’s Traders
Education Tutorial will teach you how to use a combination of trend direction,
Time Bands and an indicator as a hook to enter a trade with minimum capital
exposure. Be sure and return to the Traders Education and Dynamic Trader
Software example pages the first week of Oct. for more examples of practical
trading strategies with Dynamic Trader.

Copyright 1999, Dynamic Traders Group, Inc. – www.dynamictraders.com