The indicator is proprietaty and a version of it is available from www.jurik.com . It is simply a Momentum indicator adjusted for extreme smoothness. The conditions are a very simple. The color changes are just based on verifying price tops & bottom oscillations being created in the Market.
Simply price action verified at both extreme and simple levels. I use volume or contract bars for price. I try not to complicate price with unnecessary noise.
I'm looking to 1203.00, 1197.25, 1194.25, 1190.50 & 1183.00 as potential targets to the downside here but in consolidation I just stand aside untill price gives me some clarity.
I'ts a lot easier to read where price is going than to guess and make unfounded predictions you have to defend.
the mark douglas quote you picked happens to be my favorite. i read his second book first, was very intrigued and then read his classic first book. it wasn't until then that i really got it (but i still 'forget" sometimes......and that's always painful). if i had to pick a single motto for trading, "anything can happen", is it.