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Chronos Sequential Compass (CSC)

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The Chronos Sequential Compass (CSC) is an advanced technical analysis tool used to identify potential price exhaustion points, trend reversals, and provide a framework for understanding market structure.

Key Components:

Setup Phase:
  • Bullish Setup: 9 consecutive closes lower than the close 4 bars earlier.
  • Bearish Setup: 9 consecutive closes higher than the close 4 bars earlier.
  • Visualized by green (bullish) or red (bearish) triangles on the chart.


Countdown Phase:
  • Starts after a Setup is completed.
  • Counts from 1 to 13(D), comparing the close to the low (for bullish) or high (for bearish) two bars earlier.
  • Displayed as numbers below (bullish) or above (bearish) the price bars.


Setups:
  • A Setup is complete when the low of bars 6 and 7 in a bullish Setup are exceeded by the low of bar 9.
  • For bearish Setups, the high of bars 6 and 7 must be exceeded by the high of bar 9.


Risk Levels:
  • Established when a Countdown reaches 13(D).
  • Acts as a reference point for potential trend reversals.


Countdown Delayed:
  • Indicated by a '+' symbol.
  • Occurs when a Countdown reaches 13(D) but doesn't meet specific criteria for completion.


Recycling:
  • Resets the Countdown if a strong opposite trend emerges during the Countdown phase.



How to Use the CSC:

Trend Identification:
  • Consecutive Setups in one direction indicate a strong trend.
  • Look for potential trend exhaustion when Setups start appearing in the opposite direction.


Potential Reversal Points:
  • Pay attention when a Countdown reaches 13, especially if it coincides with other technical factors (support/resistance, chart patterns, etc.).
  • A completed Countdown doesn't guarantee a reversal but suggests increased probability.


Risk Management:
  • Use Risk Levels as potential stop-loss points or profit-taking levels.
  • Be cautious of trades against the trend when price is far from the Risk Level.


Confluence with Price Action:
  • Look for candlestick patterns or chart formations at key Sequential levels for higher probability setups.


Timeframe Coordination:
  • Consider using CSC on multiple timeframes for a more comprehensive market view.
  • Higher timeframe signals often carry more weight.


Delayed Countdowns:
  • A delayed Countdown (indicated by '+') suggests the trend might continue.
  • It can provide opportunities for trend continuation trades.


Setup:
  • Setups often provide stronger signals and may lead to more significant moves.
  • Reversals should occur within 4 bars of setup signals


Completed Countdowns:
  • Reversals should occur within 12 bars of completed countdowns


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