Here is the general rule that I use (always though keeping the context of the market firmly in mind):

When 7 of 7 say "buy", that marks the beginning of an uptrend, which remains in effect until 7 of 7 say "sell", which in turn marks the beginning of a downtrend until 7 of 7 say "buy", which marks the beginning of an uptrend, until....ad infinitum.

Now the specfic buy/sell points on the seven:

For (each) TRIN and TRINQ: Buy when 3 EMA is below the 13 EMA, sell when 3 EMA above 13 EMA. {I dropped the "lock and load" rule in favor of my overall goal of KISS ("keep it simple stupid")}

For $BPCOMPQ, when reading drops either from above bolinger bands, into same, OR from within BB's to below same...that is a sell signal. Buy signal is a crossing from below into bands, or from within to above bands.

For NAMO, NYMO, NAHL, and NYHL, if the reading is below the 6 DMA, thats a sell, and if its above, that's a buy.

I could say a whole lot more about always keeping context in clear perspective when interpreting the SS's, but I won't. For now we'll just KISS.

As many know, I've been using two trading signals for the seven sentinels: buy signals when all seven say "up", and sell signals when all seven say "down". Thus I stay long until I get a sell signal, then sell and go short until a buy signal, etc. I haven't been completely satisfied with this method this as too often gets me out late- only when the trend has reversed. I'd much rather exit prior to the reversal, then wait for the reversal signal to initiate trades in the other direction, or a reconfirmation of trend from the SS's to get back in.

Thus, I'm adding two more signals for a total of 4. The two new ones are "close out longs" and "close out shorts", which can be early warnings of reversal, or simply an indication of a "stall" in the main trend. The latter two are much more sensitive than the seven together, and they give liquidation signals much earlier than the full reversal signals, or within an ongoing trend.

The last two COL (close out longs) signals generated by the new rules are shown on chart. Since the last full signal is a buy, and no reversal has been signaled, my position would be (using new signals) flat -having closed longs, waiting for a new signal. My actual position is long, because I did not act on the COL's, and I will remain long with stops in place, because I see the seven gearing up for a new buy signal, and because sentiment has been extreme bearish (for this context) lately.

I was very disatisfied with staying long even though I watched the MCO's roll over in early August, and was extremely uncomfortable about it. Thus I've developed more sensitive signals to tell me when to get out prior to, or in the absense of, a full blown trend reversal. That is to say, at a time like right now, using the new signals, I'd be out two weeks ago, but NOT short. Just cash.

The new signals are based on SPX, NYMO, and TRIN for SPX related trading ---- and on NDX, NAMO, and TRINQ for NDX or QQQQ related trading.

I'm not yet ready to release the exact formulae, since I'm still "tweaking".

These are my methods, and of course you have your own. If they help in some way, great. If not, that's okay, too. Btw, for those who trade in much shorter time frames - you may not want to discard, out of hand, the value of knowing the trend in the framework shown here, in order to provide CONTEXT to your shorter term trends.

Good Trading. D

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Here are the Seven Sentinels. They were designed with one overriding idea in mind: ~simplicity~ They were this simple-minded trader's attempt to simplify a complex environment for purposes of defining the prevailing swing trade direction. and to greatly reducing emotion and/or whipsaws. And they are just one small part of the whole big picture of markets, from my point of view. I use them in conjunction with sentiment, cycles, and the direction of the credit cycle. But for me, they work very well in defining the short term ('swing") trend direction.

The simple rule that I use to identify the prevailing swing trade direction (approximately 2-10 weeks) is this: when all seven go to buy mode, that is a buy signal that stays in effect till all seven go to sell mode, which then triggers a sell signal, which stays in effect till....etc. I won't go into "early warnings" at this point.

The exception to that rule is that when the seven go to a buy or a sell without confirmation by the direction of the moving averages, I regard that as a likely whipsaw. For example, if all moving averages are moving down, and we get an upside crossover on all- then that is likely either a false or a premature buy signal. If, on the other hand, the moving averages had already turned in the direction of the crossover, and particularly if they had already set up positive divergences prior to the crossover, then I put a whole lot of faith in the SS's message.

You may find them useful; you may not. Trading is a very individual business. Others have their own effective methods, and that's how it should be. Here are the definitions I use for each, individually, to determine a buy or sell signal:

1. $BPCOMP- when the daily reading crosses either from above into the BB, of from within the BB to under the BB, that is a sell signal for this one indicator. A buy signal is generated in exactly the opposite way.

2, 3, 4, and 5- when the daily reading crosses downward through the MA from above the MA, that is a sell signal for this one indicator. A buy signal is generated in exactly the opposite way.

6 and 7- when the daily reading crosses upward through the MA from below the MA, that is a sell signal for this one indicator. A buy signal is generated in exactly the opposite way.