! What is the Ready Aim Fire (RAF) Indicator?
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Ready Aim Fire
What is it?
Markets tend to ebb, and flow and the best strategies take advantage of this.
Ready, Aim, Fire was developed by Simpler’s own David Starr with one goal in mind… to understand when a price level is likely to break or hold by showing overbought and oversold conditions.
Ready, Aim, Fire is a price oscillator that dynamically shows if a stock is overbought or oversold on short, intermediate and long-term timeframes. The underlying calculation of RAF gives a smoothing effect to the indicator to minimize false signals and provides additional validity to signals generated.
Major buy or sell signals on Ready, Aim, Fire can turn in to powerful moves as the market pendulum swings to the other direction.
How we use it?
We use Ready, Aim, Fire to quickly gauge whether a stock is overbought or oversold, that provides additional information as to what action we should take at major levels on the chart.
RAF works best when paired with a support or resistance level, whether that level is Darvas 2.0, a Voodoo Line, or Fibonacci extension. Because RAF shows overbought and oversold as well as generating buy and sell signals, we can use this information to understand whether a level is likely to hold or break.
The ideal condition for a major buy signal would be a stock dips into a known support level and the RAF turns and registers a major buy. That tells us that the stock is at support and the downward momentum has turned. We want to be buying these situations.
An ideal major sell would be price moves up into a known resistance level and registers a major RAF sell signal at the same time. This tells us that the stock has a ceiling overhead and not enough momentum to break through it at the moment. We want to be selling these situations.
RAF works on all timeframes and all markets from stocks & options to futures or forex.
Ready Aim Fire Origins
Here are some webinars covering the Ready Aim Fire indicator and how John uses it in conjunction with the rest of his tools.