de Leon Tracker

This indicator is designed to track the market. It is not generally affected by minor price oscillations but as the market makes a more significant move, the indicator tracks it.

The de Leon Tracker is bullish when BlL is above BrL and bearish when BlL is below BrL. However, when the gap between BrL and BlL is small it means the trend strength is diminished. Normally, in a strong trend there will be a sizeable gap between BrL and BlL.

In a bull trend you will notice a sequence of price bars that have their entire range above the channel formed by BrL and BlL. Conversely, in a bear trend you will notice a sequence of price bars have their entire range below the channel formed by BrL and BlL.

Bull Trend BlL above BrL:

Bear Trend BlL below BrL:

Bullish rallies not convincing due to narrow gap between BlL and BrL:

When the range of a sequence of price bars falls inside the channel formed by BrL and BlL it suggests potential for change.

WARNING: Simply buying the market as BlL crosses up over BrL or selling the market as BlL crosses down below BrL is not a good strategy and likely to lose money over time.

The de Leon Tracker is very useful when combined with other indicators especially when used to confirm changes in trend.

The de Leon Tracker has quite alot of staying power and because of this, it generally suffers less whipsaw.

The gradient of the channel formed by BrL and BlL can be a clue to how strong the trend is.