Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

Soultrader

Nov. 6, 2006 Market Thoughts???

Recommended Posts

I was gone for the day and looks like we missed a nice trend day. On the market profile chart the YM formed a P profile. During a downtrend this can indicate a short covering.

 

On the daily charts however, price looks as if it bounced of the trendline.

 

Are we seeing a continuation of the trend? Or was today a short covering?

1106pprofile.jpg.049ec202db5eb826173f015d621c8415.jpg

Share this post


Link to post
Share on other sites

I pointed out in the chat room was a double-bottom breakout early in the morning and confirmed on ER2. Target is 771. After that, no idea.

 

You can see from this chart also there was a bullish divergence on Force Index made on the 2nd bottom. Price is king and volume is queen! Long live the king and queen!

 

NEWBIE-TRADER-ER2-2006-11-06-TRADING-PLAN.gif

Share this post


Link to post
Share on other sites

Thanks Torero. Ill add a new thread in the indicators forum. Did you code this yourself? Would you happen to have a description of what this does as well? Also.. I want to ask you a question on the settings. If I am using a 233 tick chart would you recommend making the setting lengths to around 5-6? Thanks

Share this post


Link to post
Share on other sites

I didn't write it but not too difficult. It was taken from Alexander Elder's book "Trading for a living."

 

Best way to explain it is showing the formula itself:

 

Volume * (Close - Close[1])

 

This is similar to momentum indicator except it adds volume as an equal importance. Basically, the difference of the close of yesterday (or bar) and the close of today multiply by today's volume (interchange day to bar or vice versa). So the movement of the price with that volume tells how much impact volume had in moving price bar to bar. The bigger the movement, the higher reading the indicator will show, provided the volume remains the same. If the close stagnates, the indicators will show a small reading.

 

The divergence happens when either volume dries up while the price is moving in a steady pace or price difference was miniscule while volume remains the same. So from the previous chart I showed, prices reached the same level, but volume was diminishing. Or that the prices are stagnating producing more bars than necessary to form that 2nd bottom while volume remain the same. What can we infer from that? Lots of volume couldn't push prices further down for the 2nd hypothesis. The answer to 1st hypothesis is that prices was being pushed down by low volume. These 2 answers usually match with the common TA knowledge regarding volume.

 

I find the volume bars on the bottom of the chart very difficult to read, and volume average line doesn't help much either. Using force index averages out the volume and identifies divergence much easier.

 

Hope I explained it as well as Elder did (I don't have the book in front of me so had to use my own interpretation of it).

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Topics

  • Posts

    • ...hallucinates.... Student: “What if we gave the monkey LSD?” Guru: “The monkey already did LSD”
    • Question: To those that had/have cancer, what were the signs that made you think “something is not right here” to make you go see a doctor? Answer: So, 5/25/2018, I woke up, got ready for work, and as I walked to my car, I started gagging. Like something was stuck in my throat and I needed to clear it. And then it went away.   But 10 minutes after that, I was T-boned at 40mph on the driver side door. But what made me see a doctor was while my muscles felt better and bruises were going away, the gagging still continued, I started having fevers, my neck felt swollen, I was having such a hard time breathing, and I'd have random sharp pains in my chest, but not from where the seat belt saved me.   2 weeks after the accident, I finally see an urgent care doctor, who looks me over, tells me I'm fine, but luckily requests a neck X-ray. And I ask for a chest X-ray, which he rolls his eyes but let me have (most of my pain was in the neck, so I understand).   The very next day, he calls and says “So, that chest X-ray shows there's a 4 inch mass on your heart and lungs, and your lungs have been filling up with fluid, as well as in your pericardial (heart) wall. We need you to come in tomorrow.”   Turns out the big mass, due to the accident, caused my heart and lungs to tear and fill with fluid, the swollen neck and gagging was caused by 2 metastasized tumors, and the fevers and weight loss were symptoms. Stage 4b Hodgkin's Lymphoma.   But thankfully, we went very aggressive with chemo (and had a lot of bad side effects that don't normally happen to patients), and now I'm about 16 months cancer-free. Yay lucky X-rays! Rachel Jurina, Quora Source: https://www.quora.com/To-those-that-had-have-cancer-what-were-the-signs-that-made-you-think-something-is-not-right-here-to-make-you-go-see-a-doctor   Profits from free accurate cryptos signals: https://www.predictmag.com/  
    • As a man, the reality of life is the harshest part. I don’t mind looking older or becoming weaker over time; it’s nature.   Have you ever heard that the only people who will be loved unconditionally are women and children? Men will only be loved as long as they can provide until they are no longer needed. It doesn’t matter if you already did your best to get your kids to the best school or get the best things for them, if you stop before they’re done with it, there will be no thank you. The only thing they will remember is that they have to quit school at 15, ignoring all the previous 15 years of life you provided for them. The only people who will accept you, no matter what, are your parents. But in this situation, you might be that ungrateful child.   EDIT: Wow, I didn’t think this would get so much attention.   For those who disagree, I can only say that everyone has their problem. If you don’t get the chance to face such a thing, be grateful. Remember, sometimes what you throw in the garbage is something that someone wishes ever to have.” – ElZee, Quora   Profits from free accurate cryptos signals: https://www.predictmag.com/    
    • The good thing i had noticed so far is that the traderpot value is also on the rise..
    • yup its a gradual rollout the right way in my opinion, its really good and its exciting for the sto in 2027
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.