[NYCMB]

Originally Posted by Spydertrader »

Those interested in using The Automated Gap Removal Tool will need to contact the friendly folks over at Genesisft.com in order to have their account flagged once The Automated Gap Removal Tools comes out of Beta Testing.

- Spydertrader

Hi Spydertrader

I know we have to move Gap for ES (or YM) trading. Is it suggested to move Gap for equities trading? TIA

[Spydertrader]

Originally Posted by NYCMB »

I know we have to move Gap for ES (or YM) trading. Is it suggested to move Gap for equities trading?

Correct.

- Spydertrader

[symmetrics]

if you think the market is fractual good luck with that, volume does not always show show trend, volume can and does lessen in strong trend moves just the same as high volume no price.

thanks

[entelechy]

Originally Posted by symmetrics »

if you think the market is fractual good luck with that, volume does not always show show trend, volume can and does lessen in strong trend moves just the same as high volume no price.

thanks

both possibly indicating a change in trend?

decreasing volume and increasing price = change.
increasing volume decreasing price (velocity)= FTT.

[MKTr]

5 minute ES for 8 Mar 2010.

MK

[double eagle]

I'll chime in with a response to treeline and NYCMB's questions.
http://www.traderslaboratory.com/for...html#post91418

I'm sorry that I didn't respond earlier, but I had personal things I needed to take care of this past week. First of all, as treeline wrote the line weights and numbering on my chart imply that I viewed those several thin weight guassian trends in question as being on the same fractal. I suppose the confusion arises from one not seeing a full volume cycle in those cases. Let me propose a different way of looking at things. This will give you insight into why I annotated this area the way I did.

1. Volume cycles always complete across all fractals.
2. The market's volume cycles are not bound to the bar duration that we choose.
3. Therefore, the volume cycles don't always "look" like we think they should look like. Even though two volume cycles are on the same fractal one might exhibit the traditional "look" and the other might not.
4. If we can differentiate what the volume cycle "looks" like in these varying situations we can arrive at certainty in real-time (with just our ES 5 min chart).

So here is my rationale behind the first two containers of the day (11/24) that are in question. Let's call the thin green container from 11/23 16:00 to 11/24 10:00 “thin green 3 container” (the third move of the medium weight trend) and the thin brown container from 11/24 10:00 to 10:25 “thin brown 4 container” (the fourth move of the medium weight trend).

thin green 3 container:
I see a volume trough at 11/23 16:10 and a volume peak at 11/24 9:35 which gives me a thin weight b2b. Next we have an IBGS bar (11/24 9:40) and an EH bar (11/24 9:45) on decreasing volume which gives us our 2r. Finally we have our increasing volume peak at 9:50 giving us our 2b. Is the problem that you don't see a red bar in the price pane or volume pane to draw in the 2r like you would think you should have? Because of the fixed bar duration you might not see any red in the IBGS bar, but it surely must be there. Likewise I see red volume in the EH bar as price at some point travelled down to the low of the previous bar. It just so happens that it closed above the open and the software is coded to color this as a black bar.

So if we make an assumption that the thin green 3 container indeed warrants a thin weight guassian cycle, what do we make of the thin brown 4 container? In hindsight, one would have to conclude that a thin weight guassian is warranted for the thin brown 4 container because of the simple fact that the 10:50 bar exceeded the 10:00 bar. Here's why I is see a completed volume cycle in thin brown 4 container even though it doesn't "look" like one would think it should.

thin brown 4 container:
There was a 10:00 new homes sales announcement that one should have been aware of. One should anticipate declining volume into the announcement (9:55-10:00) followed by increasing volume at the announcement. We get that on the 10:05 bar giving us our thin weight r2r. Notice that the 10:05 bar had more volume than the highest volume of the thin green 3 container. In my opinion, this is further evidence that the thin brown 4 container is on the same fractal as the thin green 3 container. We went from increasing black to increasing red in the relative peaks between the two containers. I just don’t see the thin green 3 container and thin brown 4 container area as being part of one big thin weight guassian when the 2r is has a higher volume peak than the b2b. However, I would propose that you could see this phenomena across equal weight containers as we make our way, for example, through a typical U shaped volume day. Therefore, I pegged them as being separate volume cycles of equal weight. The next question is where is the 2b of the thin brown 4 container. I view two things happening at once transposed on one another. You have a declining volume from the 83k 10:05 bar mixed with the thin weight volume cycling. The 83k volume news bar could be anticipated to be unsustainable volume wise. One would anticipate declining volume going forward especially since there was a 10:30 crude announcement which we should have a volume trough before. Sometimes the declining volume masks (or dominates) the cycling and we don't see the 2b trough to the 2r peak. What we do see is the 10:15 IBGS bar giving us our 2b. You can also see the volatility compression and then expansion across the 10:05-10:20 bars to see the retrace. One can further take into consideration bar overlap on the 10:10 to 10:20 bars to see the retrace. The 10:20-10:25 bars show price coming off the point three and into the trend. WMCN doesn't come though (increasing red) which indicates change and by implication tells you there was a completed volume sequence. The 10:35 increasing black OB after the crude announcement and the following bars bear out this hypothesis as the 10:50 bar breaks the high of the 10:00 bar.

You might agree or disagree with what I wrote, or more importantly the market might agree or disagree with some or all of what I wrote. However, this at least gives an insight into why I drew what I drew on the chart. Hope it helps.

[rs5]

Tuesday 9 March 2010

[saturo]

Originally Posted by rs5 »

Tuesday 9 March 2010

Very nicely done rs5.