Top Gun System Overview

System Basics

The basic premise of the Top Gun system is that price is contained within the Top Gun Channel until levels of market energy are detected and cause price to migrate away from the channel lines.

The Top Gun Channel and system lines have a seemingly magnetic affect on price and have been designed to corral price during low periods of potential and repel price out of the channel when trading potential is growing stronger.

As trade potential increases system lines indicate trading potential by their relationship to price.

Top Gun trades are set up, executed and managed totally by the GRAPHICS of these special streaming charts.

The browser based Top Gun Streaming charts will produce GRAPHICAL entry and exit points when price action meets system conditions.

The trader simply needs to apply the conditions described for each trading strategy and follow the set up and execution procedures precisely as outlined for proper execution and management of each strategy.

Top Gun System Components

The Blue Line

The most rudimentary indicator of the system is the Blue Line of the Top Gun Channel and its relationship to price action.

Traders must always be aware of where the Blue Line is in relation to price action.

Up Chart

The foundation of the system is built on the premise that when price is Above the Blue Line the chart is or has been trending up. Hence the name up charts. As such, trending type buy trades should be favored until the chart indicates a trend change.

Down Chart

Conversely, when price is Below the Blue Line the chart is or has been trending down. Hence a down chart. As such, trending type sell trades should be favored until the chart indicates a trend change.

Trend Change

Trend changes can only occur when price action has passed through the Blue Line of the Top Gun Channel from one side to the other.

The most significant trend changes are set up when the Blue Line is not, or has not been visible on the chart and market action causes the Blue Line to appear in the charts window and subsequently pass through price.

The Red Line

The Red Line of the Top Gun Channel is the Risk Line and is used to evaluate the disposition of a trade and the most recent trend.

The Top Gun system mathematically detects trend deterioration and displays it graphically. This deterioration is revealed when price crosses from one side of the Red Line to the other.

When price graphically crosses the Red Line, the disposition of the trade changes, and is typically confirmed by price action shortly thereafter.

This disposition change can be used to the traders' advantage as a point of risk, or as an entry point which would by design is very close to risk.

By inference opening a trade very close to the Red Line minimizes risk should a trade fail and cross to the opposite side of the Red Line against the position.

The Top Gun system graphically indicates the short term outlook for the most recent trend direction is likely to change once this Red Line is violated.

Exit Signal

When price trades back into the Top Gun channel and crosses the Red Line Against a trade, the disposition of the trade is to be considered changed. When price closes across the Red Line against the trade direction the trade should be closed.

Red and Blue Line Cross

The MOST significant and rudimentary GRAPHICAL signal in the system is called the Red Blue Cross, or affectionately an RBx in "Top Gun shorthand"

The strategy uses the sequential crossing of the Red and Blue lines of the Top Gun Channel to evaluate trade potential.

When a Red Blue Cross sets up, price is anticipated to continue in the direction the Red Line is pointing.

Basic Top Gun Trading Strategy Set Up

Quite simply the premise for the Top Gun strategy capitalizes on the potential for Stored Compound Velocity or "CV" very often located at these coincident crossing points.

The Top Gun Bar indicator will alert traders to the potential for stored Compound Velocity to expand the range of the chart.

After price fully expands the Top Gun Pivot Indicators will identify the end of the expansions and offer entry points to counter trend trade available retracement potential the system can offer safely.