The RMO Trade Model consists of 4 modules which are explained below: 


The RMO 

This module detects the primary trend and was developed to smoothen out multiple market swings. 

If the RMO is positive (above zero) one concludes that the long term / primary trend is UP. In this case, we ideally look for blue Buy arrows with Blue bars to put on long trades. 

If the RMO is negative (below zero) the indications are that the long term / primary trend is DOWN. In this situation, we look for Red Sell arrows with Red bars to put on short trades. 






SwingTrd (Indicators & Expert) 

This module detects multiple swings within a trend. The indicators, SwingTrd 2 and SwingTrd 3 are plotted in the same window. When they intersect (cross), it can result in a potential trend change as that is where strength is building or dropping for the stock. This can be easily detected by the RMO Expert which places red (Sell) or blue (Buy) arrows on 
the price chart at these points. 





Sentiment Detector 

This RMO expert colors the OHLC chart bars red (bearish) or blue (bullish) indicating the prevailing sentiment .

When the SwingTrd 2 indicator goes above or below 0, it signals the first indication of trend change or breakout; this can be easily viewed with red and blue bars with the RMO Expert that has been provided. A more confirmed interpretation is to expect strength when the high of a blue breakout bar is crossed and weakness when the low of a first red down breakout bar is broken. 

Exit Swing Indicator (ESI) 

This module is used only when registering a profitable trade; it can help us detect a trailing stop loss and also works well as an exit mechanism. 

Only after you have entered a trade and are profitably into an established trend, should you use the ESI. Consider exiting longs below the low when the EXIT Swing Indicator leaves the over-bought region (ESI goes below 75). Likewise consider exiting a short trade above the high of the bar when the ESI exits the oversold region (ESI goes above 25 level). Refer to the illustration below :