Product Review: CATS
There was an era in American technical analysis when creative individuals wrote and published unique software that captured their view of how to trade the markets, regardless of whether their view was commercial. Today, Europe and Asia are full of folks new to the field, writing fresh software and developing new techniques. One such developer, Richard Hexton, has created a trading program, Chart Analysis Trending System (CATS), for the FTSE 100, index futures that trade on LIFFE. Having traded and run it successfully in real time for four years, Hexton has also extended the logic to the dollar/Deutschemark cross rate, currency cross-trading being more familiar and popular in Europe than in the United States.
CATS is a trend identification program that is also designed to allow your writing options at support and resistance points. Though developer Hexton did go through a phase of buying options, reality soon dictated that writing them, especially at reliable levels of support and resistance, was more lucrative. CATS serves this function by first noting changes in trend and then highlighting likely levels of support and resistance.