de Leon #103

103: Yellow bar
HL: White dotted horizontal line (every bar)
LL: White dotted horizontal line (every bar)

103: Yellow bar (de Leon #103 value - 103)
HL: White dotted line (high level set to 80)
LL: White dotted line (low level set to 20)

The de Leon #103 employs a range from 0 to 100. The benefit of this is that changes in volatility do not affect the amplitude of this indicator and in principle make it easier to read.

The de Leon #103 is a Zero Phase Delay Indicator which means it is designed to turn with the market. However, WARNING: buying and selling every indicator turn will inevitably lose money over time and the de Leon #103 was not designed to be traded this way.

As always you must do your own research as to what patterns work best. Here are some patterns which may suggest the market may turn up. Some examples to start your research on:

Please browse the patterns described in the de Leon dRSI for guidance. However, there are some exceptions:
Unlike the de Leon dRSI there is no RL level. This is because many M patterns can be found that only occupy smaller ranges (e.g. from 0 to 60) or Dn1 and Dn2 (see de Leon dRSI) both rise above 65.
Also, look for M patterns where the 103 bar range contracts on the last leg of the M (like in the examples below). When the 103 bar range starts to expand again it can suggest the market may be about to turn.

M pattern: Note: When M complete 103 turned up with expanded bar

M pattern divergent with price: Note: When M complete 103 gapped up with expanded bar

M pattern: Note: When M complete 103 range remained contracted then made an outside bar:

M pattern then a bigger M pattern unfolds: Note: When M complete 103 gapped up with expanded bar:

Other suggested research includes n, V and W shapes. The latter 2 for assessing whether to expect the market might turn down.

In a strong upmove the indicator tends to 100. In a strong downmove the indicator tends to 0. This is called saturation. Neither 0 values nor 100 values suggest the move is about to end. Instead one should look for exhaustion patterns.

You may also note that W patterns are less forthcoming than M patterns. As always you will need several tools in your war chest to be able to better assess the market.