code (logic) for blue and red dots

[firstquant]

can anyone tell me what the logic/code is for plotting the red/blue alert dots?
in many cases, but not always, a blue dot seems to coincide with the first close above the green line,
while the red dot coincides often (but not always) with the first close below the green line
many thanks in advance for your help
Firstquant (FQ)

[John Wimberley]

It is a little more complicated than just a close on a green line, but that is most of it. Don't be overly concerned. Focus more on recognising the setups and exits.

[immy]

Hi
I agree with John on this. Though I'll give you a little background. We have faster AO which we call AIMS AO V3. it was a little jagged and too sensitive plus took a bit of the real state off our screens. We decided to not display it but still take advantage of it. Since I believe in timing my trades with cross of zero line of AO, we took the best bit out of AIMS AO V3 which is cross of zero line and represented that as a dot. Not too much to my surprise, it coincided with cross of green line. Because I knew that the cross of Zero Line on AIMS AO V2 also roughly coincide with cross of blue line. This discovery should help raise confidence in not only AO but Alligator as well. The blue line is the balance line of the current time frame, which roughly remains in synch with AIMS AO V2, the one we display, and the Green line is the balance line of roughly 5times lower time frame. this means that when all three lines of alligator are intertwined and price is crossing it, we roughly have a cross of AO up to 5 times lower time frames. Add the purple to it, the purple being balance line of 5times higher time frame, each time we take a setup with all four lines intertwined we are in synch with 5 times higher and 5 times lower time frame.

I hope its not confusing. Some people might find it confusing for which I'd apologise. This is perhaps the reason I did not explain in the book.

cheers

[firstquant]

thanks, makes a lot of sense, I think