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The GTAS indicators and trading signals

Introduction

The "Global Trend Analysis System" (GTAS) method was designed by proprietary trader and ex-fund manager Bernard Prats-Desclaux. In his book, Stratégies de marchés (Market strategies), published in 2016 by Eyrolles, this trader explains the GTAS method in great detail.

His proprietary indicators used in the GTAS method are: BSI, S-Trend, FibTdi and Power. These four indicators can be used in all time frames and on all instruments. Although the indicators can be used individually they are, in the GTAS method, used in conjunction.


Suitable for : European market indices (DAX, CAC, DOW …)
: Stocks (US, EU…)
: Forex (EUR/USD…)
Instruments : Futures, CFD, stocks, forex
Trading type : Day trading and swing trading

The GTAS indicator package is free and available in NanoTrader Free and Full. The package consists of:

  • All four GTAS indicators (signals).
  • Unlimited access to the support desk.

Click here to activate the FREE GTAS indicators package in your platform

 

The GTAS BSI indicator

The BSI indicator has been designed to indicate the direction of the trend and to provide good timing for buy (sell) signals. A judicious combination of momentum indicators is the basis of the BSI indicator.

Visually, the BSI indicator is displayed as a histogram below the main chart. The histogram is interpreted as follows:

  • A green +100 bar indicates a positive (bullish) trend.
  • A red -100 bar indicates a negative (bearish) trend.
  • The other values (+50, 0, -50) are not relevant.
 

How to use the GTAS BSI indicator?

  • The timing to buy a long position is right when the BSI changes to +100 (green) and if, for example, the trend on a higher time frame is positive or if a trading strategy suggests a buy.
  • The timing to sell a short sell position is right when the BSI changes to -100 (red) and if, for example, the trend on a higher time frame is negative or if a trading strategy suggests a short sell.

Do not open long positions when the BSI is not at +100. As long as the BSI remains at +100 a long position can be maintained.

Do not open short sell positions when the BSI is not at -100. As long as the BSI remains at -100 a short sell position can be maintained.

The GTAS BSI indicator
 

The GTAS FibTdi indicator

The FibTdi is a trend indicator which combines market volatility and potential retracement levels. Visually, the indicator is represented as a green or red zone in the main chart.

 

How to use the GTAS FibTdi indicator?

When the zone is green, the trend is positive (bullish). When the zone is red, the trend is negative (bearish).

Trading:

Once a position has been opened and the trend is clear, the FibTdi shows potential retracement zones.

When the market price moves out of the zone, it is may be time to take profit or close the position.

On the other hand, when the market price moves back into the zone, it may be a good opportunity to increase the position if other GTAS indicators (BSI and S-Trend) show it makes sense to do so.

In the workspacebar the user could change the following parameters:

  • Periods – the number of candles used to calculate the volatility.
  • Ema1 – fast edge of the zone.
  • Ema2 – slow edge of the zone.
  • Ret1 – first retracement level to calculate the zone.
  • Ret2 – second retracement level to calculate the zone.
The GTAS FibTdi indicator
 

The GTAS S-Trend indicator

The GTAS S-Trend indicator is a momentum indicator which supports the trader in determining the trends based on a combination of MACD, RSI and moving averages.

This oscillator evolves between -65 and +65 with a neutral band of -25 and +25.

  • An S-Trend value of > +25 indicates a positive (bullish) trend.
  • An S-Trend value of < -25 indicates a negative (bearish) trend.
  • An S-Trend value between +25 and -25 indicates a sideways zone. A positive value in this zone indicates a positive bias. A negative value indicates a negative bias.
 

How to use the GTAS S-Trend indicator?

Trend indicator

The indicator is even more interesting when used in multiple time frames.

When the S-Trend is > +25 and no reversal pattern occurs, the trader simply limits himself to buying long positions.

When the S-Trend is < -25 and no reversal pattern occurs, the trader simply limits himself to opening short sell positions or, in case he is long, closing long positions.

It is possible to do quick trades in the -25 / +25 zone if one pays attention to the best practices of trading in a sideways zone.

Timing indicator

In the sideways zones, a move of the S-Trend indicator above +25 or below -25 without a corresponding price move is a sign of strength which can be used as an announcement of a price break.

The indicator is subsequently used as a timing signal, one of the very rare situations in which it is not necessary to wait for a price move as confirmation, because the return/risk is very interesting.

In the workspacebar the user could change the following parameter:

  • Period – the number of candles used to smoothen the trend.
The GTAS S-Trend indicator
 

The GTAS Power indicator

The GTAS Power indicator is a momentum indicator which determines the main, underlying trends using a combination of moving averages.

Visually, the indicator is shown as an green/red histogram around the zero-line.

 

How to use the GTAS Power indicator?

  • When the Power indicator is green, the main underlying trend is positive (bullish).
  • When the Power indicator is red, the main underlying trend is negative (bearish).

This indicator can be used as a filter for the other GTAS indicators.

The GTAS Power indicator

The GTAS indicator package is free and available in NanoTrader Free and Full.

The package consists of :

  • All four GTAS indicators (signals).
  • Unlimited access to the support desk.

Click here to activate the FREE GTAS indicators package in your platform