Three Stooges Signal

The Three Stooges algorithm analyzes patterns in waves along with volume & delta volume to identify areas of supply / demand imbalances. Used correctly, it is enough to gain an edge over the markets.

How it works:

# - Buy Signal (Imbalance in Supply. Decreasing BID Volume. Presents buying opportunity)

# - Sell Signal (Imbalance in Demand. Decreasing ASK Volume. Presents selling opportunity)

[#] - Trend Buy Signal (Same as Buy Signal, but also in a trend. Higher Highs / Higher Lows)

[#] - Trend Sell Signal (Same as Sell Signal, but also in a trend. Lower Highs / Lower Lows)

To achieve either a buy or sell signal there must be 3 consecutive up waves / 3 consecutive buy waves that show decreasing volume / delta volume. You can choose to use either Total Volume or Delta Volume. If you base the calculation on the Delta Volume it is more powerful than basing off of just Total Volume.


Example 1: Crude Oil - 1000 Tick Chart


Example 2: E-mini S&P - 3000 Tick Chart


Example 3: Nasdaq - 2000 Tick Chart


Example 4: FOREX - GBPUSD M5


Example 5: FOREX - USDJPY M5