Charting and Studies User Guide - CQG.com

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consecutive times this occurs. Aggressive is 2 times and conservative 3 times. It is very rare for
markets to step in opposite direction 4 times, whatever the timeframe used, market or
indicator. The qualifying of divergence is dictated by the direction that the steps are moving in
e.g. when the moving average crosses up it is doing it at a higher level than the previous cross
up (i.e. the study steps up), but the closing value of the bar on crossover of the moving
average is lower than the closing value of the bar on the previous crossover (i.e. the study
steps down). This would constitute positive divergence.
To indicate a trend qualifier the opposite is true. The steps up or down between the value of the
bar and the indicator should be going in the same direction (i.e. both step up or down). This
confirms that the indicator is showing more momentum by reaching a larger extreme and that
the value within the trend is also continuing to a larger extreme.
One of the hardest tasks a trader confronts is how to understand what is the dominant time
frame and therefore the one to be referencing. A second problem is the ability to ride a trend
through to its conclusion from a short term trade to a long term if the analysis dictates that is
what should be done. Steps qualify this process. The dominant timeframe is the highest
timeframe chart that shows any step whether on the bar or the indicator that has stepped in
the same direction on a consecutive basis on 4 occasions. As trends extend, they must step up
timeframes in order to signal that the trend is continuing and maturing. Different asset classes
can extend varying timeframes before the trend stalls. Majors on Fx will rarely go more than a
half day chart, whereas cross rates can move to daily charts. Mean reverting markets such as
Bonds will also rarely extend to historical charts. However, individual stocks and index’s can
extend to weeks and even months which means trends that began as a short term trade on
intraday charts are finally exited many years later. The appendix in Trading Time shows such
an example of riding the Australian stock market rally from 2003 to 2007 and over 4000 pts,
with began on a 30 minute chart and ended on a weekly. The use of both Peak Range and
Peak Volume act as the trailing stop to such Step trades.
For a more detailed description of these studies, go to the CQG Web site at
http://www.cqg.com/Docs/Trading_Time.pdf.
RsStep Parameters
Name Default Definition
Display Both Dictates whether both Steps or just individual ones are shown.
Value to Record bars Dictates whether the bars value or the indicators value is used.
Price Close Dictates what value is recorded if the bar value is selected.
RSI Period 34 Period of RSI.
MA Period 13 Period of Moving Average above RSI.
OB/OS Parameters
Charting and Studies User Guide