Top Gun Charts Overview

The Top Gun System

The Top Gun Trading System is a unique collection of algorithms, which constantly assess price action to evaluate its potential for use as system entry and exit points. The Top Gun System renders this mathematical information on Top Gun's proprietary Top Gun Charts.

Critical system information is represented graphically. The main component of the system creates a price channel employing a series of different color lines called the Top Gun Channel. Price relationships are evaluated with this channel and used in conjunction with other strategy specific indicators that appear when conditions permit.

The Top Gun Channel

The Top Gun Channel and is made up of mathematically generated lines each of which has a very specific and dynamic relationship to price action as it unfolds.

The Top Gun Channel is made up of the following lines.

• Yellow - Upper Channel Line
• Blue - Trend Line
• Red - Risk Line
• Gray - Lower Channel Line

Top Gun System Lines and Indicators

The Top Gun System also uses other lines and indicators that are not part of the main Top Gun Channel. These are calculated by the system and are used to graphically indicate very significant areas of interest to the trader.

Set Line

The Set Line is a horizontal light green line that appears on the background of the chart window.

The Set Line is always on but only becomes visible in the chart window when price action approaches the most recent price level of the Set Line. The Set Line abbreviated SL in Top Gun Shorthand, indicates an area where the system would expect to see trade potential develop.

To see the latest value of the Set Line when it is not visible on the chart, the value is located in the Data Line on the chart. The most recent price value of the Set Line is the light green colored value in the Data Line on the top of the chart. The Set Line has three distinct uses as a system tool.

First the Set Line operates like a price magnet. Price will very often wander to it.

Second the Set Line will tend to repel price when first approached or when price has crossed it from one side to the other.

Third use is related to the second and is based on the magnetic repelling affect. This is most evident when the crossed price travels one average Top Gun Channel width away from the Set Line after price has made a crossing from the other side of the Set Line.

Expansion Bands

Expansion Bands are maroon colored dashes on the background of the charts. These bands indicate a price level where price is likely to expand to. Once price moves to an Expansion Band, it is very likely to stall or retrace momentarily. The Expansion Bands compliment the Top Gun Pivot Indicator and complete trading rules are available for the Expansion Bands within the Top Gun Pivot Indicator rules.

Top Gun Bar

The Top Gun Bar is an orange colored price bar that indicates expansion potential. Complete trading rules are available for the Top Gun Bar.

Opposite End Marker

The Opposite End Marker is a line that extends from the Top Gun Bar to the price scale when a condition exists. Complete trading rules regarding the Opposite End Marker are contained within the rules for the Top Gun Bar.

Pivot Indicator

The Top Gun Pivot Indicator is a round mark on the background of the charts it is located at the end of a bar that meets the pivot criteria. The actual chart marking is a graphic of three concentric circles in a red, white and blue pattern.

The exact price level where the pivot bar crossed the expansion band is marked with a dark blue square mark directly on the body of the pivot bar

When conditions warrant the dark blue mark of the most recent pivot bar will extend to the price scale to help traders identify the price level of the actual pivot. This dark blue line is used to evaluate subsequent price action relative to the pivot area. Trading decisions can be made based on price action around the dark blue pivot line.

Scale Line Colors

Another indicator created to display pertinent system information alerts traders to the potential for price expansion or lack thereof. This indicator will change the colors of the time and price scale lines to coincide with the following conditions

Data Line

Data point values for specific areas on the chart are mainly located in the Data Line of the chart.

The Data Line is located within the chart at the top of the chart window.

To interpret the color-coded Data Line, reading from left to right the values and the colors they appear as are listed below.

Chart Scales

Time Line

The time line is located along the bottom of the chart frame. The times represent a timeline reference for chart data

Price Scale

The price scale is located along the right side of the chart frame.

Price scale indicates last tic price and other significant levels of support and resistance.

Normal price scale numbers are white on a black background and set at predetermined intervals based on the height of the chart.

The last tic price is yellow and tracks up and down the price scale with each change in value.

Day Separator Line

The Day Separator Line is a magenta colored vertical line that appears within the chart, it indicates the change from one day to the next.

Chart Features

Active Bar

The Active Bar is the last bar on the right of the chart. As the bar builds the first tic produces a narrow horizontal red line to represent the opening tic. The next tic on the Active Bar begins to build the body of the bar. The body of the bar eventually becomes a blue (cyan) vertical line, which represents the high and the low of that bar. The body of the bar reaches high and low painting in more blue (cyan) color as new highs and lows are made for that bar. All the while, on the right side of the bar from the open to the close of the bar there is a green horizontal tic line that travels along the right edge of the bar indicating where the last tic traded. When observed together the last green tic will coincide with the yellow last price in the price scale making it easier for the trader to follow the price action.

Crosshairs

A left click on the chart with the mouse will display crosshairs. Moving the mouse will drag crosshairs around the chart.

Price Bar Data

Place the cursor on a price bar, left click on price bar to view the bar data in the data line. The crosshairs will appear, watch the data line for the data to change. Release the left click to resume normal operation. The Data Line prices resume tracking the Active Bar data.

Range Numbers

Range Numbers are system-generated levels of support and resistance. Range Numbers are color coded for identification.

Top Gun Range Numbers are embedded into the price scale on the right of the chart.

The Range Numbers are readily displayed whenever possible and especially when price approaches any of these Range Number levels.

When Range Numbers are near current price action the price scale automatically supplants the colored Range Number between, or where a regular white scale interval number was previously displayed. This feature is added to alert the trader to this price area.

Range numbers are colored as follows:

• Session Support and Resistance     - Red
• Top Gun Session Open     - Green
• Intermediate Support and Resistance    - Maroon

In the process of calculating the Range Numbers for each new session the Top Gun system identifies an area where it deems "Normal Price Activity" should occur for the session. The Range Numbers that fall within that "Normal Price Activity" area are marked with a Gray Background as well as their appropriate color.

Scale Height

In the bottom right corner of the chart there is a number that represents the height of the chart from top to bottom. This value is used for determining whether or not to initiate a trade.

Last Price

The Last Price traded on a chart is found by locating the Yellow Price within the price scale.

Menu Options Box

Right click on the chart to open the menu options box.

Large Last Trade Price Window

Accessing the menu options box will allow you to open a large movable window displaying the last trade price. Font size can be changed for best viewing. By placing the curser in the title bar of the price window while holding down the left click button on the mouse, the price window can be dragged to any location.

Zoom

To zoom in on a chart, place the mouse on the area you wish to zoom in on, right click to access the menu options box and select zoom in. Multiple clicks will zoom in further. To return to previous zoom level click zoom out or to resume to normal click "Show All".

Internet Connection and Chart Update Speed

The Top Gun Charts are best viewed with a broadband connection and a standard internet browser. Mozilla Firefox is currently the best browser for the Top Gun Charts application.

As with all data applications the faster the connection the faster the application updates.

As for a computer configuration most any high end Pentium chip with a gig or more of memory will run the charts satisfactorily.