Big 3 Signals

Detect buy and sell signals on multiple time frames with Taylor Horton's Big 3 indicator. This study can work in any time frame. Use to help identify clean setups in a matter of minutes. Big 3 takes Taylor's checklists and favorite indicators, and combines them to create the Big 3 signals.

Checking the Big 3 labels can help gauge in a matter of seconds whether the market is very bullish, very bearish, neutral, or transitioning from one to the other.

Like any multi-time frame study in TOS, labels will only show for the time frame that the chart is currently set to and higher. In other words, in order to see a 5 minute label, the chart would need to be set to a 5 minute or lower time frame.

Green arrows or dots = bullish criteria is met

Red arrows or dots = bearish criteria met

In order to get a buy or sell signal on any time frame, the time frame ABOVE it must also meet the bullish/bearish criteria. This means, we can ONLY get a buy signal on the daily chart if the weekly chart also fits the bullish criteria.

No bullish weekly chart? No daily buy signal!

Big 3 stands for Trend, Structure, and Momentum. Criteria that when met can lead to powerful directional moves.

Trend:

The direction price is moving

Structure:

The behavior and current flow of the market, letting us know if price is moving in a consistent and aligned pattern.

Momentum:

The velocity or power of price moving in a certain direction.

Taylor found that the best trades tend to be in setups that fit a criteria on multiple time frames, such as trades taken off one time frame tend to have a better rate of success when a higher time frame chart also “fits the bill”. For instance, in order to get a sell signal on an hourly chart, the 2 hour chart would also have to meet the bearish criteria.

This is important because we want bullish structure inside of bullish structure, and bearish structure inside of bearish structure. Bullish 30 minute charts don’t tend to fare well inside of bearish 60 minute charts!

Rather than looking at 5+ time frames on every candidate, Taylor simplified the process, while still seeing signals in one chart.

The Big 3 indicator helps avoid:

  • Looking at multiple indicators at once

  • Unnecessarily switching between different time frames

  • Not seeing moves on lower time frames

  • Missing a good setups or taking setups we shouldn’t be taking

Benefits of Big 3 Signals:

  • More confidence & confirmation on setups

  • Finding cleaner setups in a messy market

  • Faster – Cut prep time!

  • See opportunities objectively

  • Easier to use

  • Kill FOMO and Greed

Signal arrows appear in the following times frames: D, 4hr, 2hr, 1hr, 30m, 15m, and 5m.

When we find a setup with green B3 bars across multiple time frames, overwhelmingly the path of least resistance is to the upside. These tend to be the strongest setups the market has to offer, with bullish trend, structure, and momentum from top to bottom. If red arrows/labels are printed, that time frame AND THE TIME FRAME ABOVE it, meet the bearish criteria.

Bearish labels are red, Green are bullish, yellow means no trend.

This indicator has labels at the top which correspond to the current bar of the referenced time frame, and print across multiple time frames for added confirmation of the strength of a particular setup.

  • The strongest setups (bullish + bearish) tend to have the B3 bars across multiple time frames (the more the better)

  • In order to make our jobs easy, we built-out the multi-big 3 labels, which gives us a valuable birds-eye view of our signals across all time frames.

  • Dark Green: Bullish criteria is met, but currently no squeeze

  • Light Green: Bullish criteria is met PLUS a squeeze

  • Dark Red: Bearish criteria is met, but currently no squeeze

  • Light Red: Bearish criteria is met PLUS a squeeze

  • Yellow: Neutral

  • Dark Green is more useful for buying the dip

  • Light Green is the combination of the squeeze + buy signal

  • Dark Red is more useful for selling the rip

  • Light Red is the combination of the squeeze + sell signal

Green arrows or dots = bullish criteria is met

A daily buy signal (arrow or dot) is generated when a stock meets both the weekly and daily criteria. This serves as Taylor's “buy signal”, and so long it’s active, the path of least resistance is to the upside.

Weekly chart criteria:

  • Trading above weekly 21EMA - Trend

  • Positively stacked EMA’s - Structure

  • Green 10x bars - Momentum

Daily Chart criteria:

  • Daily squeeze

  • Green 10x bars

  • Positively stacked EMA’s

  • ADX above 20

  • Bullish DMI

Red arrows or dots = bearish criteria met

A daily sell signal (arrow or dot) is generated when a stock meets both the weekly and daily criteria. This is Taylor's “sell signal”, and so long as it’s active, the path of least resistance is to the downside.

Weekly chart criteria:

  • Trading below weekly 21EMA - Trend

  • Negatively stacked EMA’s - Structure

  • Red 10x bars - Momentum

Daily Chart criteria:

  • Daily squeeze

  • Red 10x bars

  • Negatively stacked EMA’s

  • ADX below 20

  • Bearish DMI

Taylor likes to use Moving averages, 10X Bars, Keltner Channels and the Squeeze which provides the “thrust” needed to trigger the release of energy with his Big 3 indicator.

MABars is a companion study for the Big 3 Signals.

MABars is included on the Big 3 download page.

MABars:

The MABars companion study to the Big 3 Signals helps the trader to visually see alignment of the 21 and 50 moving averages in an instant and save on chart clutter.

Colored Bars Representing Moving Average Crossovers.

  • Blue bars = 21 ema over 50 sma (bullish)

  • Grey bars = 21 ema below 50 sma (bearish)

How do I get all of my Multi Time Frame Label studies to display?

https://intercom.help/simpler-trading/en/articles/3519935

About - Squeeze Pro

https://intercom.help/simpler-trading/en/articles/3186315

About - 10X Bars

https://intercom.help/simpler-trading/en/articles/3210663

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