zdo

#1.0 "...At the same time, he places a stop-loss sell order just below his buy order, so that if the stock does not move straight up after he buys, he will be sold out and his loss cut. "I have no ego in the stock market," he says. "If I make a mistake I admit it immediately and get out fast." " #1.1 "...buys when he feels that informed buyers are getting in" #3 (ditto MrPaul) "trained for the market just as methodically as he had studied his dancing"

Over last few days quite a few posts have discussed the vagueness of entries when using VSA setups. At essence, I think the most recent posts about pivots, levels, etc. is part of that for most of us. Precision entries may be possible, but the basic premise of VSA (applying my current and limited level of understanding) is to gauge ‘professional’ accumulation (or distribution) and adjust one’s own inventories accordingly. This sort of implies that, like a professional, one would also not take on any inventory one is unable to carry without high levels of stress through short term adversity regardless of the time frame(s) used in the VSA setups. Currently, I’m looking at VSA setups / patterns as one item, then turning to wholly other techniques for entry triggers in (those diabolical) shorter time frames. In my experience, the probabilities of having the various sets of ‘professionals’ concurrently line up VSA setups for me at progressively lower time frames aren’t that great - so currently I am restricting my VSA work to one time frame.

A few days ago I asked the question “What is delta divergence?†It was a serious question. To clarify – Is it simply divergence in directions btwn price and delta (as when TickMoneyFlow is going down and price is going up)? OR Is it ‘classic’ divergence (like higher price on this swing than last with a lower indicator high than last indicator swing high. etc) ? OR Is it delta diverging from total volume in balance? OR Something else? OR Was it just a totally stoopid ‘them what just don’t get it’ question ? That’s always a possibility with me … and btw I don’t know where TL came up with an IQ of 59 for me. This traders IQ is not 59 I taked this test and thay sed my IQ was 64 not 59 that is insulding and you put it up wer evrybodd can sea :\ Anyway bump to the question - What is delta divergence? And thanks!

Was just re-reading the section in MTMarkets about Trendline clusters. Than, searched on ‘VSA’ ‘trend clusters’ on the TL forum and jjthetrader’s post rating them highly from 10/27/07 was one of only two that came up. Does anyone know how they are actually calculated? What kind of constraints / qualifications are placed on historical trendlines etc in order for them to be used in the clusters? Such as - must a trendline that is used be part of a historical parallel trendline channel or could a standalone trendline just from a set of tops (or bottoms) qualify, etc.? Thanks

re Testing: Yes it is for real time only. I only looked at this on a YM 1 minute charts just before posting it to make sure it still works. Try a shorter time frame first then increase time frame to see if coloring technique is robust for your instrument… SwissTrader on TS offers a commercial ade version that will paint historical data. re: “kind of pale†This code also seems to produce progressively paler paints as the day goes on. Would appreciate any ideas to stabilize it. Am liking these gradient functions for all kinds of fuzzy ‘logic’ more and more hth zdo

Here is a modification of Ant's MarketDelta 'footprint' code that implements a threshold free, dynamic coloring gradient for the balance at each price. The coloring algorithm serves as a pretty good template for auto-coloring of other indicators, etc. See comments in code. PBZMARKETDELTAAUTOCOLOR.ELD

What is Delta Divergence? Thanks.

MisterEd, Here is the code I am using for TickMoneyFlow {-------------------------John Hudson's TickMoneyFlow Indicator------------------------} {This code tries to keep up with how much money is actually entering or leaaving an issue in order to measure the buying or selling pressure on prices. It uses the snapshot Bid and Ask(CurrentBid, CurrentAsk) fields provided by TS to gauge whether a trade was initiated from the buy or the sell side. Although you can never be sure whether a trade hit the tape in proper sequence with the Bid/Ask data, in general trades initiated from the buy side will go off at the Ask and trades initiated from the sell side will go off at the Bid. In the case of a trade going off either between the Bid and Ask or outside the Bid and Ask, this code attempts to assign the trade to the most likely side of the market based on whether the trade was above or below the trade before it or, if the trade before it was at the same price, it determines what the status of the market was of the most recent trade in the past that was different from the current trade's price. This code will run on any time interval..... from 1 tick bars to daily bars. } [LegacyColorValue = true]; Inputs: Length1(2), Length2(89), ShowLinReg(false) ; Vars: IntrabarPersist TickFlag(0), IntrabarPersist OldPrice(0), IntrabarPersist TMF(0), IntrabarPersist NewTickVol(0), IntrabarPersist MyBarVolume(0) ; if BarNumber >= 1 then begin NewTickVol = Ticks - MyBarVolume; MyBarVolume = MyBarVolume + NewTickVol; if (C>=CurrentAsk) then begin TMF=TMF + (C * NewTickVol); TickFlag = 1; end; if (C<=CurrentBid) then begin TMF=TMF - (C * NewTickVol); TickFlag = 2; end; if (C<CurrentAsk and C>CurrentBid) and C>OldPrice then TMF=TMF + (C*NewTickVol); if (C<CurrentAsk and C>CurrentBid) and C<OldPrice then TMF=TMF - (C*NewTickVol); if (C<CurrentAsk and C>CurrentBid) and C=OldPrice and TickFlag = 1 then TMF=TMF + (C*NewTickVol); if (C<CurrentAsk and C>CurrentBid) and C=OldPrice and TickFlag = 2 then TMF=TMF - (C*NewTickVol); OldPrice = C; if BarStatus(1) = 2 then MyBarVolume = 0; end; Plot1(TMF, "TMF"); Plot2(ama(Plot1, Length1), ""); if ShowLinReg then begin Plot3(LinearRegValue(Plot1,Length1,0)); Plot4(LinearRegValue(Plot1,Length2,0)); end; //if ShowLinReg The key logic is: if (C<CurrentAsk and C>CurrentBid) and C>OldPrice then TMF=TMF + (C*NewTickVol); if (C<CurrentAsk and C>CurrentBid) and C<OldPrice then TMF=TMF - (C*NewTickVol); if (C<CurrentAsk and C>CurrentBid) and C=OldPrice and TickFlag = 1 then TMF=TMF + (C*NewTickVol); if (C<CurrentAsk and C>CurrentBid) and C=OldPrice and TickFlag = 2 then TMF=TMF - (C*NewTickVol); Screen shots are attached for some of today’s action in a 102 tick YM chart. TickMoneyFlow1.jpg shows the first hour and a half of trading. Notice at around 10:10 the directional and angular congruency with KlingerGoslin (oscillator) started to fall apart – rally was snuffed and TMF led way downward. TickMoneyFlow2.jpg shows angular divergence at about 14:45 (see white up arrow). Again rally was short lived. Over at around 15:02 the KlingerGoslin ‘rallied’, but it was unconfirmed in magnitude by TickMoneyFlow and further sell off ensued. TickMoneyFlow3.jpg shows strong buying on the KlingerGoslin from 15:16 through 15:20 presaging the late rally but the ‘aggressive’ action shown on TickMoneyFlow delayed it until ‘aggressives’ capitulated / reversed at around 16:42. At around 15:46, after KlingerGoslin had faltered, the ‘aggressives’ carried the rally into the close… …maybe :\ As I compare the code for TickMoneyFlow with MarketDelta code (which, in TS, is in arrested development now because the Bid Ask data is random snapshots / is inaccurate (ie has a median inaccuracy of about 2.5% compared to T&S prints - but can err much higher)) I see immediately that TickMoneyFlow uses CurrentBid and CurrentAsk while MD uses InsideBid and InsideAsk and upTicks and downTicks But my same original questions hold: Is TickMoneyFlow a ‘squigly line’ representation of MarketDelta? Or is it a different perspective on / dimension of 'volume'? and How does TickMoneyFlow relate to the original question of this thread? Many thanks.

Thanks for the reference. Aren't divergences btwn price and the TickMoneyFlow (standalone ie not considering KGI at all) equivalent to Delta divergences?

In TS, for the last week or so have been watching KlingerGoslin() and TickMoneyFlow() indicators plotted in the same subgraph using a TickBar data stream. Scaling for both indicators is on NoAxis, Date range on screen. KGI parameters are set fast (c,3,10,16,34,55, 13, 1, Darkgreen, Darkred). (If you need I can post pictures or the version of the KGI I'm using) Their movement is usually highly correlated but they also show some pretty neat divergences / disagreements, etc. Is this a ‘squigly lines’ representation of what this topic is exploring?? Thx

Here is a screen shot of YM 60 minute chart for a week with this paint bar. Thanks, all, for all the other HA indicator contributions.

One other possible benefit – wrote HA as a function that can be called by systems and other indicators… most TS paintbars have the HA calculations inline

Here is a useful variation on Heikin-Ashi. “Determines HA direction for two (Min/Max) number of Compare bars and displays the Up Color if they agree in the Up direction, displays the Down Color if they agree in the Down direction, and displays the Warning Color if they do not agree. “ paraphrased from code comments Defaults Min to 0 Max to 1 // very granular diff btwn min max, but still 'low whip' upColor to Green dnColor to Red warnColor to Yellow Original idea credited to KAHUNA on TS Boards (who, btw, is also an EL code and systems developer. Disclaimer: I have no financial or personal affiliations with him. He just seemed to always post clean elegant code...) PBMODHAKAHUNA2POST.ELD

james, Actually Douglas does have a method. It’s very old fashioned; no subliminals, no affirmations (as they are typically thought of in ‘the secret new age of attraction’), no mental techniques or tricks… His method is hard and simple - Do ‘it’ until you Be it. Mark would say something like '(faithfreely and unerringly) do ‘it’ until you (unerringly and faithfully) are it'. However, that brings out a polarity - because others are touting a more “Be it until you do it†approach An example of this way can be found at http://www.stevepavlina.com/audio/ Audio #018 and the accompanying docs at http://www.stevepavlina.com/blog/2007/01/stevepavlinacom-podcast-018-faster-goal-achievement/ ... this also relates some to the “I have an image†paragraph of your most recent post...Maybe liston to Audio #020 too… hth What would spell both for you? (and not necessarily simultaneously) All the best, zdo

Techtrader, Do you know specifically where it's buggy or not producing correct results? ie how to replicate the bugs? zdo

Sparrow, What language did you write it in? If VB or C++ or C# would be very interested in seeing the source. Many thanks. zdo

Anyone done an analysis of the Dow this week in terms of VSA - especially 11/28? The strength = weakness ? Thanks, zdo

Just got the new member ‘post or perish’ msg when I came up this time. So, here’s a post - that includes a short self -introduction. While looking at price and volume threads on T2W, followed a reference to TL Forum and here I am. My user names are ZDO on T2W, obx on TS forum, (and I forgot it on ET) - should you need to check the intention and tone of my legacy posting. Have only found time to look at a few pages but, so far, TL is a breath of fresh air. Going forward, as I plow through all 83 pages on this thread will I find herein any digests of the principles of VSA ? Any special pages on this thread to get the big picture? Also, is the book complete? ie does the Tom Williams book disclose all the patterns used in the software? Many thanks. zdo