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.

Recommended Posts

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

Share this post


Link to post
Share on other sites

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

Share this post


Link to post
Share on other sites
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.

Edited by entelechy

Share this post


Link to post
Share on other sites

I'll chime in with a response to treeline and NYCMB's questions.

http://www.traderslaboratory.com/forums/34/price-volume-relationship-6320-160.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.

02242010es5min_b.thumb.jpg.e94ae5dd822202e63cdd819de28f1f3b.jpg

Share this post


Link to post
Share on other sites

For those individuals who have an interest in using the Trade Navigator ' Automated Gap Removal Tool' (and the 'Freeze Trend Line Slope' Function) please see the instructions below.

 

Step One

 

Phone Genesis Customer Service and indicate you wish to enable the Spyder String for the Gap removal tool.

 

Step Two.

 

Click the telephone icon located in the upper left corner the Trade Navigator Software.

 

attachment.php?attachmentid=19910&stc=1&d=1268250067

 

Step Three.

 

Within the 'Update Data' Dialog Box, select the 'Download Special File' Option. If not already there, type the word 'Upgrade (without the quotes) into the box. Clcik Start.

 

attachment.php?attachmentid=19911&stc=1&d=1268250067

 

At this point, the Upgrade Process Begins. Once completed (and after Trade Navigator has restarted), move to the next step.

 

Step Four.

 

"Right Click" any chart and choose ' Edit Chart Settings.' Within the 'Chart Settings Dialog Box,' Highlight the word "price" directly under Pane 1. Next, check' 'Remove Overnight Gap' located in the bottom Right Corner of the Dialog Box.

 

attachment.php?attachmentid=19912&stc=1&d=1268250067

 

Click 'OK.'

 

Once completed, the TN Software will automatically remove all overnight gaps enabling each day's opening print to occur exactly at the previous day's (16:15) closing price.

 

Also, to use the 'Freeze Slope' Function, simply grap the end of any trend line while holding down the 'Control (CTRL) Key' on your keyboard. Doing so will allow any trader to lengthen (or shorten) any trend line without changing the slope of the trend line itself (remains exactly as annotated).

 

HTH.

 

- Spydertrader

icon.jpg.39312d4218dd5f2164ebfaf609b48786.jpg

Download.jpg.070c82895e12cd6a57c52a83de12c327.jpg

check.jpg.fab674411206893ee3eefbdadfa710f4.jpg

Edited by Spydertrader
Formatting

Share this post


Link to post
Share on other sites

Just a Quick note for those who may have already read my previous post. I have edited the post instuctions in order to have 'Calling Genesis' appear now as Step One - instead of Step Four.

 

HTH.

 

- Spydertrader

Share this post


Link to post
Share on other sites
Once completed, the TN Software will automatically remove all overnight gaps enabling each day's opening print to occur exactly at the previous day's (16:15) closing price.

 

Also, to use the 'Freeze Slope' Function, simply grap the end of any trend line while holding down the 'Control (CTRL) Key' on your keyboard. Doing so will allow any trader to lengthen (or shorten) any trend line without changing the slope of the trend line itself (remains exactly as annotated).

 

HTH.

 

- Spydertrader

 

The tools work great. The charts are so much cleaner than when using the copy pattern tool.

 

One little glitch when using the freeze slope tool. It works fine for trend lines. But if you use TN's trend channel, sometimes the channel will rotate at a fast rate, instead of extending/shortening. If it does that use the end of the other trend line instead.

 

There's no rhyme or reason, sometimes the LTL does it, sometimes the RTL. And it's not the top or bottom one consistently. Couldn't nail down any consistent pattern. So if grabbing one line is a problem, use the other.

Share this post


Link to post
Share on other sites

Wednesday, March 10, 2010

 

Today's chart attached. I focused on marking the volume of all lats as non-dominant. Sorry about the dots in the volume pane. I'll try to remember to remove them from now on.

 

What's the general consensus about acting on signals only at the close of a 5-minute bar? It seems like, due to the nature of the market and the ability to trade on various fractal levels, one could find a fractal level where acting on the close of a 5-minute would be acceptable/profitable. If that is the case, I'd like to find out if that acceptable fractal level is the "traverse level", i.e., where I would not be trading RTL or LTR movements within tapes, but the RTL or LTR tapes themselves of the next higher fractal. (Please note that I'm not saying that I would enter and exit only on tape breakouts.) Sorry if this is confusing. It's difficult to explain. Thanks for any advice.

5aa70fe439b76_ES03-103_10_2010(5Min).thumb.jpg.c8762448fa38d6974e04de6c6b0f7873.jpg

Share this post


Link to post
Share on other sites

This is a follow up to a question I asked Spyder privately about picking off gaussian transitions. I've written up a "literal" bar by bar gaussian log for that trend that started at 15:30 on 3/9 and ended at 11:05 on 3/10

 

(all times end of bar eastern)

 

I've identified a few problem areas - and I'm looking for clarity.

 

At 16:05 we've seen B2B 2R 2B. OK - no prob!

 

16:10 - 16:15 looks like falling black - rising red - which doesn't fit into our "mold" :) so I'm not sure what to do with it.

 

Then we get a rising black followed by a bunch of falling black. Again - not sure how to fit this into our mold. Falling black *always* happens after rising red - is it possible that 16:15 to 10:00 is a down volume sequence? Price is definitely rising over that period so it's hard to "accept" that. There is also no completing 2R.

 

10:05 - 10:40 looks like 2B 2R 2B - there isn't an initial B to make B2B.

 

10:45 - 11:05 completely confuses me :)

 

15:30 - IBGS - red to black volume shift

15:35 - falling black

15:40 - rising black

15:45 - rising black

15:50 - falling red

15:55 - rising black

16:00 - ???

16:05 - rising black

 

16:10 - falling black

16:15 - rising red

9:35 - rising black

9:40 - falling black

9:45 - falling black

9:50 - falling black

9:55 - falling red

10:00 - IBGS

 

10:05 - rising black

10:10 - rising black

10:15 - rising black

10:20 - falling red

10:25 - falling red

10:30 - falling black

10:35 - rising black

10:40 - ???

 

10:45 - falling red

10:50 - rising red

10:55 - falling black

11:00 - falling red

11:05 - rising black

 

Comments appreciated

Share this post


Link to post
Share on other sites

Today's chart attached.

 

If you have an automated program drawing your tapes on the chart you attached, you might want to re-think the logic used.

 

I focused on marking the volume of all lats as non-dominant.

 

How did that work out for you?

 

What's the general consensus about acting on signals only at the close of a 5-minute bar?

 

I have always provided advice which espoused the wisdom of learning to crawl, walk and run, prior to, learning to fly. However, should one choose to forgo such a conservative approach, one can act on signals from finer level tools before the actual close of an ES Five Minute Bar.

 

It seems like, due to the nature of the market and the ability to trade on various fractal levels, one could find a fractal level where acting on the close of a 5-minute would be acceptable/profitable. If that is the case, I'd like to find out if that acceptable fractal level is the "traverse level"

 

If a trader uses exclusively Coarse Level Tools (i.e. only an ES Five Minute Chart), then trading at the 'Traverse Level' provides the answer you seek.

 

HTH.

 

- Spydertrader

Share this post


Link to post
Share on other sites
I've identified a few problem areas - and I'm looking for clarity.

 

At 16:05 we've seen B2B 2R 2B. OK - no prob!

 

16:10 - 16:15 looks like falling black - rising red - which doesn't fit into our "mold" :) so I'm not sure what to do with it.

Look at the time of day. That's not unusual.

 

Then we get a rising black followed by a bunch of falling black. Again - not sure how to fit this into our mold. Falling black *always* happens after rising red - is it possible that 16:15 to 10:00 is a down volume sequence? No Price is definitely rising over that period so it's hard to "accept" that. There is also no completing 2R. The rising gaussian is drawn to the top of price movement regardless of the volume slowing down, giving a heads up for the short term change.

 

10:05 - 10:40 looks like 2B 2R 2B - there isn't an initial B to make B2B.

There are a lot of B2B2R2B levels "nested" in this up move. 10:00 is a trough of "a" B2B, the third or fourth one.

 

10:45 - 11:05 completely confuses me :)

 

I had trouble here as well, still don't have it worked out.

 

 

Gaussian annotation should go to where the peak or trough of price is. Sometimes volume peaks before or after this, but that's the way to annotate.

Saturo.jpg.5748e3d4d8fb4eb2c12521722e6944a3.jpg

Share this post


Link to post
Share on other sites

16:00 - ???

16:05 - rising black

16:10 - falling black

16:15 - rising red

 

I thought this group of bars was falling red, figuring that the lateral indicated non-dominant movement. I believe I learned this in the Futures Journal. But, based on Spyder's response to my post and Ezzy's response to yours, it seems that I either misunderstood or misapplied what I learned. From my interpretation of Ezzy's response, this appears to be rising black, continuing on until 9:50. Is that correct?[/color]

 

10:00 - IBGS

 

It seems like this bar could have been a retrace, with price continuing lower. I thought increasing volume was a characteristic of IBGS. No? Or maybe you saw it intrabar?

Share this post


Link to post
Share on other sites

Thanks for the reply!

 

If you have an automated program drawing your tapes on the chart you attached, you might want to re-think the logic used.

 

I consider it an "assistant", as Barney Fife as it may be at this moment.

 

I'm experimenting with 1) taping through lats, where I almost always lose the Gaussian pattern, and 2) pausing taping while in lats and resuming after the lats terminate.

 

On this chart, I didn't tape through lats. Otherwise, I thought the tapes were OK. I'm accelerating on increasing volume and fanning on decreasing volume. If I'm not getting this right, I have a feeling I'm in trouble.

 

How did that work out for you?

 

I'm not exactly sure. :rofl:

 

My assessment of marking all lats as non-dominant movement:

1) It seems to work when there are no overlapping lats

2) I need to make sure my Guassians reflect the price action when the lat exits

3) I'm considering price action and Guassians while in a lat to be subfractal

 

If a trader uses exclusively Coarse Level Tools (i.e. only an ES Five Minute Chart), then trading at the 'Traverse Level' provides the answer you seek.

 

Great. I'm quite content to work with Coarse Level Tools and take this one logical step at a time.

Share this post


Link to post
Share on other sites
I thought this group of bars was falling red, figuring that the lateral indicated non-dominant movement. I believe I learned this in the Futures Journal. But, based on Spyder's response to my post and Ezzy's response to yours, it seems that I either misunderstood or misapplied what I learned. From my interpretation of Ezzy's response, this appears to be rising black, continuing on until 9:50. Is that correct?[/color]

 

 

 

It seems like this bar could have been a retrace, with price continuing lower. I thought increasing volume was a characteristic of IBGS. No? Or maybe you saw it intrabar?

 

It's very possible I incorrectly annotated this area and 15:45 to 16:05 is a dec red sequence ending at 16:05. You have to go fine to see this, but there could be an R2R2B2R sequence there. It will really mess with your 5min gaussians if you try to draw that in :D. I didn't annotate a lateral as we didn't have the volume drop off that usually accompanies one. But again that could be an error, end of day volume being questionable. Somewhere between 16:05 and 9:35 is another B2B.

 

However you slice it 9:35 to 9:50 is inc black. Even with volume slowing the cycle is continuing higher.

 

I don't have 10:00 as an IBGS. But they can happen on decreasing volume.

Share this post


Link to post
Share on other sites
Guest
This topic is now closed to further replies.

  • Topics

  • Posts

    • $AIZ Assurant stock nice breakout, from Stocks To Watch , see https://stockconsultant.com/?AIZ  
    • Date: 28th March 2024. The US Dollar Strengthens As Economists Believe The ECB Will Struggle To “Hold”. Early this morning, the Fed Governor advised “there is no rush to cut rates” and “the data within the upcoming months” will be vital. The US Dollar Index rises to a 1-month high. The value of the USD will largely be based on today’s data on economic growth, consumer sentiment and pending home sales. Dollar and index traders are closely monitoring tomorrow’s Core PCE Price Index which analysts expect will read 0.3%. A higher inflation reading can potentially pressure stocks and support the Dollar. Strong declines in NVIDIA and Netflix stocks pressured the NASDAQ on Wednesday. Though, buyers entered late in the session to boost the overall price. EURUSD The latest comments from members of the Federal Reserve are supporting the US Dollar. The forward guidance between members of the Federal Reserve is mainly not aligned. The Chairman advises the Fed does not need much more proof for the regulator to feel comfortable reducing rates. Whereas the Fed Governor, Mr Waller, advises there is no rush, and he wants to see a few months of data before determining the next move. Therefore, the upcoming inflation and employment data will remain vital and could even push back rate hikes further. According to economists, the Federal Reserve will cut the interest rate on 3 occasions this year, but the timing of the first cut is less certain and may change depending on upcoming data. A positive factor for traders is that EURUSD exchange is not witnessing conflicting currencies. The US Dollar is trading 0.12% higher while the Euro is declining against most currencies. The Euro is trading 0.06% lower against the Pound and the Canadian Dollar and 0.16% lower against the Japanese Yen. Yesterday, the head of the Bank of Italy, Mr Cipollone, said that the authorities were confident that inflation would return to the target of 2.0% by mid–2025. He also supports the lower of interest rate and will use this as a basis for adjusting monetary policy. The Euro is generally under pressure as investors believe the European Central Bank will struggle to avoid cuts if the Fed decide to delay their adjustments. The US Dollar will be influenced by four major economic data releases. The US Final GDP, Weekly Unemployment Claims, Pending Home Sales and Consumer Sentiment Index. If these read higher than expectations with the weekly unemployment claims dropping, the US Dollar is likely to witness further support. However, investors should note the main release will be tomorrow’s Core PCE Price Index. Traders are expecting no major news for Europe and volatility levels may fall tomorrow as European markets are closed for Easter. Technical analysis currently points towards a continued downward trend. The price is trading below the neutral on the RSI and below the 75-Bar EMA. However, investors should note this will also be dependent on upcoming US data. USA100 The price of the USA100 was under pressure throughout the whole US session but was saved by an increased volume of buyers late in the session. However, a positive point is the components held onto their value. Even though the index fell in value, only 28% of the components declined. Investors will now turn their attention towards tomorrow’s PCE Price Index and the upcoming earnings season which will start in mid-April. The price is now trading slightly above the Moving Averages but slightly below the 50.00 on the RSI. Therefore, technical analysis remains at the “neutral” level and continues to indicate a larger price range. If today’s economic data is positive the stock market can witness confidence and support as this continues to indicate a soft landing. Though, if the data is too strong, it could also trigger a hawkish Fed which is known to be negative for the USA100. Always trade with strict risk management. Your capital is the single most important aspect of your trading business. Please note that times displayed based on local time zone and are from time of writing this report. Click HERE to access the full HFM Economic calendar. Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! Click HERE to READ more Market news. Michalis Efthymiou Market Analyst HFMarkets Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • $IBKR Interactive Brokers stock narrow range breakout watch above 111.16 , see https://stockconsultant.com/?IBKR
    • $ISRG Intuitive Surgical stock narrow range breakout watch above 403.07 , see https://stockconsultant.com/?ISRG
    • $JETS ETF top of range breakout watch above 20.61 , see https://stockconsultant.com/?JETS
×
×
  • Create New...

Important Information

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