Dynamic Profit Zones Indicator

Available On: ThinkorSwim, TradeStation

How Do We Use It?

For the first time, the Dynamic Profit Zones Indicator finally makes it possible to understand the personality and mood of a specific stock. This helps you identify profit targets appropriate for the current cycle a stock is in. You can finally avoid the limitations of a one-size-fits-all exit strategy.

With the Dynamic Profit Zones Indicator, you can see at a glance where price is likely to go. This allows you to know whether to expect a quick profit or to hold for larger gains. If you use Fibonacci Extensions, the Darvas 2.0 Box, or Voodoo Lines, the Dynamic Profit Zones Indicator is designed to help you decide exactly where to exit without guesswork.
The Dynamic Profit Zones Indicator is an exponential moving average tracker which will follow price action and display easy to see dashed lines where price has a higher probability of meeting exhaustion. The power of this indicator comes from the fact that it can not only work on any time frame for any chart it is added to but also that you can view multiple moving averages at once. More is explained in the companion class “Dynamic Profit Targets” with John Carter.

What does it do:
The Dynamic Profit Zones Indicator:

  • targets and displays specific levels for price where the moving averages have moved to in the past and will likely meet the same result where you can expect a pause, if not reversal in price direction,
  • makes it possible to understand the ‘personality’ of a specific stock to help you you identify profit targets appropriate for the current cycle a stock is in,
  • allows you see at a glance where price is likely to go, to know whether to expect a quick profit or to hold for larger gains.

How to read the Indicator:
Once you have the indicator on your chart, what you will notice first is the levels appearing as dynamic dashed lines around the price action. Your candles may not be near any moving average levels and thus will not show up as dashed lines this is okay. As shown below, price will only trigger the ST Dynamic Profit Indicator to show when it is near the levels. In short, when price is near the “dashed” moving averages displayed by the ST Dynamic Profit Indicator, this can mean it is time to do a quick evaluation and look for further confirmation on the move.