1. Introduction

You know that a picture is worth a thousand words, well each spectrum tells a story. From now on we will use actual spectrums from the Stealth. Remember, these are static, now, as we learn about all the information they convey. Once we are confident that you have understood the spectrum, we will use dynamic spectrums to prepare you for registering a lot of information in a short length of time.

The power of the Stealth must be becoming clear. It extracts all its information about all the traders and displays it in quickly recognizable spectrums. Your job is to use this information to answer the question, "What should I do?"

2. Long

The overall sentiment of the spectrums below is long. This is indicated by the direction of the bars.

3. Short

Notice all the short spectrums are below the axis.

4. Critical Mass

Remember, the four center bars represent 50% of the participants. We refer to these four bars as the critical mass required to determine the sentiment.

5. Flat

The spectrum is considered to be flat if the length of all the bars is less than two grid marks. This represents less than 10% of the share's market activity.

6. Exhaustion

There are unique situations where one of the components of the sentiment reaches exhaustion. Remember sentiment is like emotions, you can only be so happy and you need to step back, take a breath. Well in the market, the number of trades executed in a designated length of time has a saturation point, also. At this point, traders stop their activity and catch their breath before proceeding. Let's look at the two types of exhaustion;

Length (Velocity) Exhaustion: The rate of buying or selling activity has reached a maximum. Length exhaustion is only of concern when entering a trade.

Rate of Selling Exhaustion Rate of Buying Exhaustion

Color (Acceleration) Exhaustion: Increasing rate of buying or selling activities represented by the bright white from the blue palette or bright white from the red/yellow palette. Color exhaustion is only of concern when exiting a trade.

Buying Acceleration Exhaustion Selling Acceleration Exhaustion

7. Exhaustion by Length

The exhaustion points indicate a unique moment in time when the traders' sentiment is reversed. See the spectrum below. All the bars are pointing down. We know that indicates a short market. The bars are colored from the red/yellow palette. This tells us that there is increased selling activity. The center bar is exhausted by length indicating that shares were shorted at the fastest possible speed. At this precise moment the sentiment of the market is long.

This is a pivotal point and only applies when the exhaustion indicator at the top or bottom of the spectrum is flashing.

8. Exhaustion by Color

Color exhaustion DOES NOT affect the sentiment of the spectrum. It indicates that the most active traders' acceleration has been exhausted. When you want to 'lock in the profit', color exhaustion will indicate the most opportune moment.

Selling Acceleration Exhaustion Buying Acceleration Exhaustion