A reliable indicator

<p>Technical analysis is not an exact science, sometimes it is difficult to identify the pattern. The same can be said about Elliott wave analysis, sometimes the pattern is not clear. In this situation I rely on other indicators like the BTI to guide me. The BTI is a sentiment indicator used to confirm the trend, when it goes up the FTSE 100 is likely to go up (trend is up), when it goes down the FTSE 100 is more likely to go down.</p>
<p>In November I was short FTSE 100 but the Elliott wave pattern became unclear. I was not sure whether to keep my short or not. When the BTI turned down on 17 November that was the confirmation signal I was looking for, the indicator was telling me to keep my short. I kept my short and the position turned into a decent profit.</p>
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<p><a href="https://www.bettertrader.co.uk/.a/6a0162ff9ddd58970d0282e135ca81200b-pi"><img alt="UKX211205" border="0" src="https://www.bettertrader.co.uk/.a/6a0162ff9ddd58970d0282e135ca81200b-800wi" title="UKX211205" /></a></p>
<p>I closed the short near the low because the decline was in five waves. The FTSE declined as low as 6989, it is now rebounding but the BTI is still declining. This tells me the rally is counter trend. So I am waiting for another opportunity to go short. Of course this could change, if the BTI turns up it will be a different story.</p>
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