The Expert Trend Locator ( XTL ) was developed by Tom Joseph to identify major trends, similar to elliott wave 3 type swings.
Blue bars are bullish and indicate a potential upwards impulse. Red bars are bearish and indicate a potential downwards impulse. White bars indicate no trend is detected at the moment.
Added to the indicator is the recommended use to enter a position, as explained by Tom Joseph in his book Applying Technical Analysis: Once a blue or red bar appears, the indicator signals an entry level, a stop loss level and two target levels (2nd is optional). The levels can be shown until a new signal emerges or just above/below the breakout bar.
Finally, a cloud formed by two displaced moving averages (DMA) is included, which allow the trend to continue its momentum. During an uptrend the lower moving average could serve as a trailing stop, and during a downtrend the upper moving average could serve as the trailing stop.
Now we need the MOB (make or brake)