[federicoo]

hi, could you inform me how to setup the studies and template in ew to use all of these indicators that you are showing us?

Thanks in advance,
Fede

[jperl]

Originally Posted by abboman »

Hi Jerry,
1.) When you scale in do you use the Shapiro effect or do you pull the trigger when then price hits the scale in point.

Sorry for the delay in answering your query. I just noticed it.
As a newbie if you are using the Shapiro effect, you should use it on every entry. That includes scale ins as well. The whole idea behind the Shapiro effect is to give you confidence that the trade will move in your direction.

2.) Could you give some thoughts on when you reverse a trade. When do you do it?

I was going to discuss trade reversals in the Market Statistics threads, but never got around to it. At some point perhaps I will add a thread about this. Basically, if you are in a trade and the trade begins to fail, you have 3 choices: a) exit at some predefined stop loss b) wait for a scale in point or c)reverse the trade. I've already discussed a) and b). Here is a simple procedure to do c): Wait for a scale in point and apply the Shapiro effect. If the Shapiro effect does not materialize, reverse the trade and double up on the number of contracts you are trading. The whole idea here is you want the trade to be profitable and you want it to be so, quickly.

3.) I'm a recent ensign subscriber and I don't see where you can extend the HUP lines on the charts. Did you do that through a DYO?

You can extend HUP lines by assigning global variables to them and then use the price line graphic to extend them.

4.) In an earlier thread you wrote about using hard stops in case you lose power or your equipment fails. How far out do you place these stops and do you enter them and cancel them every trade? Or are they sitting out there all day? Or something else?

I use ZeroLine Trader for entries. ZLT automatically enters a stop loss with every trade entry and deletes them on every exit. The stop losses are placed far enough away so they don't get hit.



Ok Mark hope this helps

[BlowFish]

Glad to see you are still around Jerry. An idea for c) above. If whilst waiting for the Shapiro effect the other end of the trigger bar is broken, reverse.

[n123]

Thank you Jerry for introducing this interesting topic! I have read all your threads and watched all the videos. I have a fundamental question about HUP.

I am very curious to know why do HUPs work. Why are they support and resistance? For example, if SD1 is a support/resistance area, why not SD1.5 or SD 2.3? What is so special about them?

To me, support and resistance work because people around the world use them, like fibs... why do 50% or 61.8% retracement often rejects price? because many people watch them and use them. So the reason for them to work is self-fulfill prophecy.

I am sure they work well for you, but I am just curious why they work.

Thanks again!

[jperl]

Originally Posted by n123 »

I am very curious to know why do HUPs work. Why are they support and resistance? For example, if SD1 is a support/resistance area, why not SD1.5 or SD 2.3? What is so special about them?

It depends on what you mean by working, n123. The standard deviation points above and below the VWAP represent the volatility of the price data over the period for which you computed the SD, nothing more. It thus represents the amount you should expect the price to fluctuate. It's a quantitative measure of volatility.
How you use this information is of course up to you. I do not think of this as support/resistance. In fact I don't like that term since it suggests a point of reversal which in fact it is not. Rather I prefer to describe it as points where the market slows it's motion for a time before deciding what to do next. I thus call them HUP or hold up prices rather than support/resistance.

[n123]

Originally Posted by jperl »

It depends on what you mean by working, n123. The standard deviation points above and below the VWAP represent the volatility of the price data over the period for which you computed the SD, nothing more. It thus represents the amount you should expect the price to fluctuate. It's a quantitative measure of volatility.
How you use this information is of course up to you. I do not think of this as support/resistance. In fact I don't like that term since it suggests a point of reversal which in fact it is not. Rather I prefer to describe it as points where the market slows it's motion for a time before deciding what to do next. I thus call them HUP or hold up prices rather than support/resistance.

Thank you for your reply Jerry. Oh I should not confuse hold up price with support and resistance, sorry about that.

I understand that SD quantitatively measures the volatility. But I still wish to know why SD1 and SD2 are hold up prices but not SD1.5 or SD 1.3 or anything in between? Is there some discontinuity in the distribution in the SD1 and SD2 level so that when price goes there it tends to hold up or slow down? Basically, why those particular points?

[jperl]

Originally Posted by n123 »

I understand that SD quantitatively measures the volatility. But I still wish to know why SD1 and SD2 are hold up prices but not SD1.5 or SD 1.3 or anything in between? Is there some discontinuity in the distribution in the SD1 and SD2 level so that when price goes there it tends to hold up or slow down? Basically, why those particular points?

As far as HUP is concerned, there is nothing special about SD1. Every bar on your chart has a high and a low, each of which is a HUP. The question then comes down to which of the HUP's do you wish to trade against. The SD values are useful in that they represent a quantitative measure of minimal market movement. So if you enter a trade at SD1.5 say, your expectation is that the market should move at least one standard deviation

[n123]

Originally Posted by jperl »

Every bar on your chart has a high and a low, each of which is a HUP.

According to this, and the fact that we can create bars in infinitely many ways (5 seconds bar, 7 seconds bar, or 23.5 seconds bar... etc.) can we say that in fact every price can be a HUP?

Originally Posted by jperl »

The question then comes down to which of the HUP's do you wish to trade against. The SD values are useful in that they represent a quantitative measure of minimal market movement. So if you enter a trade at SD1.5 say, your expectation is that the market should move at least one standard deviationa HUP.

Then... here can we say that any point from SD1 to SD3 are possible entry points as we can expect price to move at least one SD from there? So SD1.3 SD 1.7 SD 2.4 all work (as good as SD1 or SD2?) ?

I may be way off and missing some important points. Please forgive me if I sound rude or challenging, I just wish to understand this fascinating subject (I like maths!). And as English is not my first language, I couldn't express very well.

Thank you.