Eric Johnson

Wow, gathered what I could from the links. It looks like you have a system of indicators or a way to tell when high frequency trading is in action. Then perhaps a way to use the data flow from price sales to trade the market. It looks like you have a lot to share, I do not have the Sink or Swim software so I am limited. Since it looks like you have a unique perspective on market manipulation, I welcome what ever you feel like sharing here. I do not want to labor you, just if I can help get something this interesting to the creative people, I am in. If you want to do another separate thread I will also assist. I live overseas and labor to get ideas communicated daily.

Here is what I got from it, the basic input that we use for technical indicators is not sufficient to render useful information. This is due to the unique factors that go into forming each bar. We cannot tell things like, where the volume was generated from, the duration or intent of participants, if people are opening or closing positions, and so on. He says we need to use the price sales data calculations to get a truer understanding of the market condition. I think it is an interesting point, I sometimes wonder if the market technicals work because so many people are using them, rather than any real reason of supply and demand. Don't get me wrong, I like indicators as measuring tools, but I often use them to see what the crowd is likely to be thinking. So please share or link to what you find useful for price sales calculations. Depth is a good thing for perspective.

I wonder if others have observed this aspect of revised historical charts. I was trading the Nasdaq around Feb of '09. I was trying out a opening gap close trade. I took a small QQQQ option, and even had the futures feed to watch it 24 hours a day. The gap was never even near closed on the minute charts, but all sites like Yahoo and daily historical back fills showed the high and lows with a closed gap. This is the idea that those who control the past history color the future, especially if they could shape technicals. Like I posted before, who controls what exact tick that reflects open, high, low, close? Could the formations like head and shoulders be sculpted to suck in dumb money then reverse? Also I have seen different price levels for the historical highs of the S+P, varying around 20 points. To something more concrete. The statistical shaping of the past and market directing. Here is one of my favorite sites reporting the major upcoming revision of the way unemployment numbers will be accounted, coming up 2/5/10, yes Friday. Mish's Global Economic Trend Analysis: 824,000 Will Disappear On February 5; BLS Admits Flawed Model But Plans No Changes I do not know if it will matter to the markets. It does show the ways that stats are manipulated and things like the GDP figures are of suspect and constantly revised. Of course there are an unlimited number of factors that drive the markets. This has directed my system building to focus on technical high probability scalps. I look for things like times when the markets are acting fairly normally, the 24 hour forex markets offer many hours when the markets are just coasting along. Then I look to isolate technical setups that may not be huge pip runs, and may only happen a few times a day, but are in the 80-90% probability of being effective trades. I would love to be a relaxed swing trader of day bars, but the stream of market directors has gotten so fast moving and hard to predict. Like when is an announcement out of China going to shake the markets? Never mind the meddling regulators and weekly game changers. Why would I want to bet my money on what the team of Bernake, Obama, and Geitner will spring on the markets next?

daedalus said- Re: E-micro Currency Futures "How liquid are these markets gents? I'm interested in trading a smaller lot size than a normal futures size (for position sizing, etc) but I don't want to go back to the spot market because I typically enter the market on buy/sell stops. Much easier to do this with a DOM in the futures market and a constant spread." I am pretty sure that you can use the DOM on Ninja trader with a few brokers for spot forex, and it is a nice one with preset phases for order and exit available. I know MB Trading works with NT, but I am not 100% sure that the Forex is included in that connection. Also they do not have backfill data.I also know JR Futures has forex and data backfill for NT, but we had real troubles with them interfacing and crashing with NT last year. NT offers many broker connections. NT can be a little shaky because it requires the .net framework for windows to run. We found that it ran best on XP with only .net 2.0 plus the patch , no higher versions. Also due to the liquidity of most FX pairs I use market orders with MB trading and have good fills.

I agree with Garak, I would never go back to futures currencies. I think you will be at a great advantage for so many reasons. One of them being that you can use market orders and not get crushed on slippage. As for charting and systems, you should have no problems. With the volume and tight spreads you can expand to real scalping if you like. It amazes me that we do not see more people running to forex. I have traded so many things, and forex is by far the best for 24 hour access, consistency of price flow (especially EUR/USD), and yes free quotes and platforms. Anyhow hope this encourages you as you push through the conversion process.

Interesting ideas for sure. I was trading corn futures when it went electronic a few years ago. The daily ranges went wild, and it seemed to trade mirroring the stock market, more than the underlying value of a bushel of corn. It blew my normal technicals out of the water, going limit up for almost 3 sessions. I am noting the disconnect of underlying asset value, and the power of speculative binges. Something like we saw in the price of oil. Then there is the question of what kind of measurable forces would bring about this kind of swing. Is there predicable times (like announcements) when technicals are dramatically altered? For instance I was trading the S&P when it hit it's lows of 666. Form this point should I have predicted that there would be such a V bottom? Was there really so many people sure that the underlying value of the S&P assets were worth so much more the very next day? I am asking kind of out there questions for the following point. I wonder if it was some kind of plunge protection triggered, or just normal market technicals for a rebound. And I do not think that the companies were worth that much more the next day, but the index sure acted like it. Actually we did predict the bottom technically, but expected a test of the lows, maybe even a nice pullback to go long on. So on a mirco scale it is interesting to see how limited or unlimited the effects could be of high volume trades at key points or formation decision points. I guess it depends how much money a large player has to risk to attempt to steer the market. Finally I really value what the guys are discussing. I have always been interested in things like, how is the high and low of a day determined? Think about it, there must be a few market orders that get filled at absurd prices. There has to be a filter for what counts. That has a great bearing on my technicals. Enough for now, so glad this is not an online gaming forum, I would have to go to nerds anonymous for enjoying these conversations.

Yes they move very closely, there is also a time stamp VT also. Of course during fast moves there is only a sampling of the thousands of orders per minute, at intervals available. I can trade pretty well off VT charts to my actual fills on MB. Actually there is time stamps on the MT market watch window (right click on the word "symbol" and select time). They do not include seconds though. I think you can delete the extra pairs so you are not streaming too many at once.

Hi, the reason I mentioned it is because I am supposed to have data feeds from the same company, and MT delays quotes. There are ways to improve it, like making sure there are not too many data feeds (market watch window) open. For my testing I had about 3 pair charts open for both platforms. I recommend getting a MB Trading free demo account, and /or a VT Trader free demo charting account. Especially the MB gives me a pretty reliable stream and will time stamp quotes if you set it up properly in the watchlist window (right click on the column label and add time). It has a charting beta version, but it can be unstable with it running. If your MT demo just temporarily freezes up, or has data gaps in back fill, it is not a good sign. Otherwise do the testing during announcements comparing quotes. Keep in mind that they will not be exact, as MB has a variable spread, and you may have a fixed spread. The delay that I am talking about can be up to 10 seconds, so you will see it if it is major. Also I usually use the EUR /USD because it has the high volume. Good luck with this, VT trader is my preferred platform and has free feeds. I do use MT for longer term charts, because it is a more stable platform. VT is just technically amazing, and does offer auto trading and custom indicator alerts. Anyhow let me know if you have set up questions.

Was reading some interesting info on high frequency trading and the ability of not only funds to move the market, and the idea of adjusting tick bias by the market makers. We have some brilliant writers on this forum. Just wanted to open a thread on perspectives on market manipulation. Here is what I had for inquiries. I noticed when trading the S+P that at critical technical decision points there would be extreme volume spikes. Do you believe in the "plunge protection team"? What are you seeing for unusual activity? I have held the opinion that the US markets have been propped up by fiat (printed) low interest money, for political reasons like passing health care. So for me I got tired of my options on the index being disrupted by market changing announcements and things like short selling bans. I switched to forex, where the large volume over rides some of the shock of large fund injections. Have others changed their trading style, or technical tools to accommodate these possibilities? Do you consider trading to be more difficult now, or technicals less useful? How about scalping versus swing trading? For me I want to scalp and get in and out before they make the next surprising game changing announcement or close more banks over the weekend. Feel free to post any upcoming changes that may give a heads up on changing market technicals or fundamentals. Something like a change in capital gains tax rates, could effect technicals with lower volume, skewing some indicators. Anyhow the point of the thread is to be more aware of what is moving the markets and tools being used to stay profitable in these historic times.

Hello, I was looking over the major indices to see how my old system did for predicting the recent pullback in the S&P. I had built a mega oscillator system on Quotetracker before I switched to trading forex. It can be simple, as it is based on paint bars, and it can be very complex, as it has so many built in systems. It has the TTM squeeze system, and short and long term indicators. Anyhow it is free, and you can pick and delete what you choose. It has many templates, paintbar library, and is set up for day bars, or minute scalping. It was viewed by almost 2,000 people, but is buried deep in the coding forum so I posted a link to the thread. http://www.traderslaboratory.com/forums/f46/technical-indicator-tools-5174.html

It is a bit tricky posting, here is a almost the same install pack, it has the complete many lined fantail that Walter uses. It is in the indicators as "Fantail Var MA's (1)", I wanted it posted on the last thread. VT enviro with full fantail.zip

Since VT Trader is not a simple platform, I posted a plug and play version with the indicator installed on one of my other threads. It is post #13 of the "Fresh or first crossovers" - technical indicators forum. This install also is preloaded with alerts for use with envelopes. I want to answer questions there and not divert this thread too much. The idea is that somebody can see quickly if they find the systems useful. The indicator named Fantail Var is the full fantail to try that I believe Walter based his research upon ( and I mentioned in the previous post). http://www.traderslaboratory.com/forums/34/fresh-first-crossover-strategies-7338-2.html#post87403

Hello, I have decided to post a plug and play install pack for VT trader. Due to the extensive set up of the many system components, I offer the simpler install pack as a way to evaluate and develop quicker. The reason I switched to forex is because the Euro trades so consistently. Anyone interested can watch the success of the system without the major set up. It can be adopted to other stocks or futures. They can also use the full fantail indicator to see Walter's system. The attachment pack has all the chart envelopes set up, 4 currency pairs, alerts, and you can put on the daily pivots if you want. This is much more complete than the alert previously posted. VT Trader is free with quotes and backfill with a CMS demo account and download. If you are already using VT, back up your environment, as this can over write it. Once you are logged in to the platform, use the import environment option to activate the attachment that you unzipped(not RAR opened). Always say OK to the alert account questions pop up. Then you should be up and running. if you have the cross hairs activated, you can double click on each line to see what it is, delete the indicator, or modify. The alert arrows are a "trading system", accessable by right clicking on a chart gives menu. Params , properties, and edit (outputs) are the ways to customize the alerts. You can hide the arrows, show the fantail 2 lines, and customize the sounds etc. The blue arrows are the price exceeds the 50 ema 15 (14) pip envelope, pink arrows are fantail expansion of both lines, and the white arrow is the 14 ema 17 pip envelope price cross(EUR/USD only). Pull the white horizontal line to the bottom of each chart. The fantail expansion and price exceed operate off of a single pip setting. The margin setting turns off the alert at a farther out pip level. Keep this in mind if you customize. And that the arrows will appear on contraction also. VT just released an update version, it can be a bit buggy if you change the templates or time frames many times on a single chart. I have delayed releasing this attachment, because it is a fairly complex system. If all goes right, the idea is that you just wait for the occasional alert, make the high probability trade, and it makes things simple. Well hope it is helpful for some. I can answer questions, I have found the system very effective. VT enviro 2 give.zip

I have traded with many brokerages, companies like JR futures have small S+P mini margin levels, and forex brokers offer varied leverage. Basically I hope that those who are concerned do send an email, and we can hope these regulators can understand things like decreased tax revenues, brokerages losing money, investment going overseas, and so on. I think I read that there will be a restructuring of brokerage liability, and that may include excess cash reserve, or insurance for them, aka higher fees.

Hi, This is a timely discussion as Obama announces plans to "regulate" the financial sector, and we see stocks go down. It is my bias, but the big funds always seem to have a way around the regulations, and the smaller trader just gets more run arounds. Also they step up their "security anti terrorism " paperwork, that means they freeze your assets and ask questions later if you have anything unusual. It sounds harmless until you are overseas citizen trying to get a bank account without visiting a branch in the USA, (no personal account=no withdrawal) and so on. My point is that these regulatory commissions need to be kept in check. The US regulatory and anti terrorism agenda has a way of forcing it's way around the globe. As for futures and the CFTC (commodity futures trading commission ), I enjoyed trading futures for years but, the quote prices for futures are high, trades expensive, and ability to vary lot size is less. I don't really want that kind of direction for forex. They would be placing liability demands on brokers that may lead to higher fees. We may see the decrease in volume in FX if regulation goes too far. Also early 2011 the capital gains may be dramatically increased, if the tax cuts are let to expire. Anyhow, as they say, love it or leave it, I guess I left a long time ago.

Hi, I should have notated it more clearly, but my above post #332 is the VT trader indicator for the Modified Fantail by Bemac, it is installed with the technical analysis menu, indicators builder, import function. Then it shows up as a fantail var MA's on the indicator menu. Remember to unzip it, do not open it with windows RAR. For other platforms you may need to search the thread or let others know what you are using. Good luck.

The CFTC is trying to change leverage requirements and control all US forex transactions. This will result in maximum leverage of 10 to 1 leverage on all accounts. The action is open to comment for a time, and I hope it is stopped. I do not want 10 times more of my money deposited to trade the same size lots. For one thing that money is already subject to plenty of regulations. It also makes it subject to loss if there is more large financial problems. I will probably only trade with foreign brokers, and that is so much extra paperwork and expense to make transactions. Here is a link to learn more, sorry it has a pop up, but it was one of the best articles, http://www.fxstreet.com/education/forex-basics/cftc-forex-proposal-us-retail-market-to-disappear/2010-01-19.html here is where to write to send comments http://www.forexcrunch.com/act-against-the-cftc-110-leverage-proposal/ I guess this is an active email secretary@cftc.gov

The CFTC is trying to reduce Forex leverage to 10 to 1 for all US Forex traders. This means that if you now have 100 to 1 leverage you will have to increase your deposits 10 times to trade the same amount of currency. The act is open for comment, I hope it can be stopped. Here is a link describing other details. Sorry, it has a pop up you have to close to view the article, it was one of the best write ups. http://www.fxstreet.com/education/forex-basics/cftc-forex-proposal-us-retail-market-to-disappear/2010-01-19.html I suppose this is a contact email to send comments. secretary@cftc.gov here are other contact ways http://www.forexcrunch.com/act-against-the-cftc-110-leverage-proposal/

Hi Mr black, What are you using to generate your arrows? Are those swing arrows? I will follow up on my inquiry about using pairs to forecast and compare related movements. I focus on 4 pairs. I have found that the EUR/ USD and the AUD/USD usually travel together similarly. So I watch both of them for major direction indicators that could effect the pair. If the AUD/USD is breaking out of a strong channel up with force, I expect it pull the EUR/USD up with it, even if the EUR/USD is not showing the clear setup to move. Same idea for major support, resistance, daily pivots and formations. For the USD/JPY and EUR/JPY, it is the USD/JPY that is the primary leading market and it's technicals should be given priority. I am focusing in the USD/JPY for it's ability to follow through on a channel breakout with lasting trends. I am not a big squeeze breakout trader, but this is the market I would do it on. The EUR/JPY is a kind of unpredictable follower and I found it difficult to micro scalp it on small ranges. I find it acting technically responsive only if the other pairs are just stuck in messy ranges. Well nothing too specific, but I do enjoy having the pairs to compare, and choose the best one to get the best move. It is nice to get lucky on a delay play, but they are not a sure thing.

Today I would like to share an interesting observation and tool that I like. There is a general concept in the markets that if you have a extended width price channel, that the directional breakout will have a proportional height. It is something like the height will be at least half the width, up to the width and height being equal. That is not really the focus of the post though. In the chart attached I want to demonstrate the optical illusion caused by adjusting the scaling of the chart. On most platforms you can scale manually on the X and Y axis. This causes distortions, making it hard to judge the angle of a trend, and width and height. These can be very disorienting as the market changes and the chart rescales. Most grid overlays are not calibrated to offset this effect either. VT Trader has a nice tool that helps me measure. To use it, I have to activate the crosshair, and click and drag a line where I want to measure. Make sure you click in a blank space. A yellow box appears giving me real coordinates. The first unit number is the horizontal measurement, second number is vertical, third is the price level. So to the chart, the "A" black thick line is actually longer in units than the "B" pink line (A=319 units, B=253 units). "C" is just the quick way to measure the X, Y coordinates. The distortion is due to scaling. I could re-adjust the scaling to make it look more natural if I wanted to. This is a way to quantify your scaling and avoid mistakes like, "this trend has gone on way too far". Or looking at a trend and thinking it is a very steep breakout, but you are just vertical scaled to make it look that way. Fortunately scaling is not a problem for vertical only comparisons like a fibonbacci retracement. If you have a trained eye you can see that in the uptrend breakout (light blue arrow), it retraced near the 50% level, allowing for many traders to double this height to estimate the top.

Hi, glad you find it interesting. I do not have trade station, and I think this is the Easy Language base. I will do my best to point you or a volunteer coder in the right direction. Walter's and Bemac's code for the modified fan tail was I think coded for Easy Language, and other platforms on the forex thread "Walters Forex trend Trades". You may be able to search word the thread. I have enclosed the install (as trading system) for VT Trader. You will need to refer to the notes I posted on the coding forum about the fantail alerts for more details to install. I think Quotetracker is the easiest to set up alerts via paintbar, but the custom indicator may be the problem. Below I posted the basic code for VT and expanded the notes a bit inside {}, this does not include the input or output variable settings, they are in the attachment though. The point of attaching the code is to give an idea of how it is constructed. Basically get the code for the fantail, the ema and envelopes, set up the variables for alerts, and choose the fantail lines you want. I excluded some of the lines in the fan, for space. So hope this helps. What the code does is to give two different ema envelopes. The fantail expansion and the 50 ema envelope price cross alerts are on one setting, that includes an alert shutoff margin. Then there is separate settings for the second 14 ema 17 pip envelope alert, and a margin shut off. I will be glad to answer questions, but there are simpler versions posted. Basically once you get this set up you can just sit back and wait for audio alerts that are set to your own specs. {set up for EMA and first envelope} DataBars:= Ref(Pr,-HShift); tmpMV:= Mov(DataBars,tPr,mt); MA:= tmpMV+((tmpMV*VShift)/100); {Upper and lower channel of envelope} UC:= MA + (Pips*SymbolPoint()); LC:= MA - (Pips*SymbolPoint()); {margin shut off of EMA 1} UCC:= MA + (Pipscont*SymbolPoint()); LCC:= MA - (Pipscont*SymbolPoint()); {fan exceed variables} LCF:= MA - (Pipsfan*SymbolPoint()); UCF:= MA + (Pipsfan*SymbolPoint()); { second MA for 17 pip 14 ema setup variables} DataBars:= Ref(Pr,-HShift); tmpMV:= Mov(DataBars,tPrt,mt); MAT:= tmpMV+((tmpMV*VShift)/100); UCT:= MAT + (Pipst*SymbolPoint()); LCT:= MAT - (Pipst*SymbolPoint()); UCCT:= MAT + (Pipscontt*SymbolPoint()); LCCT:= MAT - (Pipscontt*SymbolPoint()); {second MA margin alert} second_MA_UPPER:= Pr>UCT And Pr<UCCT; second_MA_LOWER:= Pr<LCT AND Pr>LCCT; {fantail above and below the envelopes} outside_alert:=MA1>UC AND MA49<LC AND MA1<UCF AND MA49>LCF; outside_alert_two:=MA1<LC AND MA49>UC AND MA1>LCF AND MA49<UCF; {price above or below the first envelope} UpTrend:= Pr>UC And Pr<UCC; DownTrend:= Pr<LC AND Pr>LCC; {Long/Short Entry/Exit Display Signals auto trade extra} Buy_Signal:= Cross(MA,UC); Sell_Signal:= Cross(LC,MA); {/// Bemac June 2006 \\\\ / Fantail@ Variable MA's \} {Calculate fantail modifiaction Wilders Average Directional Index [ADX] } TH:= IF(Ref(Close,-1) > High,Ref(Close,-1), High); TL:= IF(Ref(Close,-1) < Low ,Ref(Close,-1), Low ); TR:= TH-TL; {--------------} PlusDM := IF(High > Ref(High,-1) AND Low >= Ref(Low,-1) , High-Ref(High,-1) , If(High > Ref(High,-1) AND Low < Ref(Low,-1) AND High - Ref(High,-1) > Ref(Low,-1) - Low , High - Ref(High,-1) ,0)); PlusDI := 100 * Wilders(PlusDM,ADXPr) / Wilders(Tr,ADXPr); MinusDM:= IF(Low < Ref(Low,-1) AND High <= Ref(High,-1) , Ref(Low,-1) - Low , If(High > Ref(High,-1) AND Low < Ref(Low,-1) AND High - Ref(High,-1) < Ref(Low,-1) - Low , Ref(Low,-1) - Low ,0)); {--------------} MinusDI := 100 * Wilders(MinusDM,ADXPr) / Wilders(Tr,ADXPr); DIDif := Abs(PlusDI - MinusDI); DISum := PlusDI + MinusDI; ADXFinal := 100 * Wilders(DIDif/DISum,ADXPr); ADXRCustom:= (ADXFinal + Ref(ADXFinal,1-ADXPr)) / 2; _ADX := IF( ADXtype = 0 ,ADXFinal ,ADXRCustom); {Calculate a Variable Moving Average using method devised by Tushar Chande} Barnum := BarCount(); EmaIndex:= IF(VarMAPr > 0 ,(2 / (1+VarMAPr)) ,0.20); Diff := HHV(_ADX, ADXPr) - LLV(_ADX, ADXPr); MyConst := IF(Diff > 0 ,(_ADX - LLV(_ADX,ADXPr)) / Diff ,EmaIndex); MyConst := IF(MyConst > EmaIndex ,EmaIndex ,MyConst); VarMA := IF(Barnum < ADXPr + (ADXPr * 1.5) , Close ,MOV((((1 - MyConst) * Ref(VarMA,-1)) + (MyConst * Close)), 2, s)); {Calculte & Plot Multiple MA's of the Variable Moving Average fill in the blanks } MA1 :=Mov(VarMA, 2,Initial_MA_Type); MA2 :=Mov(VarMA, 4,Initial_MA_Type); MA3 :=Mov(VarMA, 6,Initial_MA_Type); MA48:=Mov(VarMA,98,Initial_MA_Type); MA49:=Mov(VarMA,100,Initial_MA_Type); Envelope_cross___fantail__alert_zone_four.zip

Hi, I like that idea. It reminds me of using the 21 ema as a trend direction indicator. I suppose that would be for a trending market. I find the USD/JPY does this nicely. Here is a basic trade that I like to use when the markets go into sideways trading, usually a day after strong trending. The attachment is the recent 5 minute Euro. Sorry I am using different colors at times. It is because the fantail crowd is uses specific colors, and I didn't want to confuse them at the time. The chart pink line is the 50ema, yellow bands are the 15 and 30 pip envelope. The light blue is the 14 ema, and the dotted blue is the 17 pip envelope. There is a few ways to use the indicators. My favorite is to use the 30 pip dotted yellow bands as a reversal point to the 14 ema (light blue). This is shown by the red triangles. The set up is only valid when price is actually oscillating across the 50 ema. I avoid market openings, strong trends, and squeeze break outs. I like an 18 pip stop, but this can be reduced with confirming lines like trendlines or pivots. The next way I like is to use the inner yellow dotted 15 pip envelope, when the market is gently oscillating. I trade back to the 50 ema. It is amazing how many times this trade works if you give an 18 pip stop. Especially if you delay the entry as long as possible past the 15 pip envelope. It is one of those factors where especially the Euro oscillates about 6 times more than it breaks out. Finally (optionally) I like to use the 14 ema, 17 pip envelope (light blue) for confirmation. I only prefer reversal trades outside the 15 pip yellow bands. I check to see that the price has been seperated from the 17 pip envelope. The white arrows show this trade. If price starts riding the 14 ema band, it means to be cautious for any reversal trade. This can be seen in the red thin arrow area. If you follow the entries on the envelope cross, the place where price gets to the 14 ema is usually very little loss, even if you do have a draw down. I also use the 17 pip (14 ema) envelope as a counter strong trend first touch reversal. These trades can be quite effective if you properly check for the mentioned market conditions. Look for a time after a long strong trend, real oscillation across the 50 ema, and be aware that the later in the oscillation pattern, the more likely the break out. If you have runners you can hold for longer runs in the oscillation. As you can see most all of these trades went well past the 50 ema for average of 25 pip runs. I have posted some alerts on the coding forum. These strategies are pretty simple to monitor if you just set the alerts and wait. I watch 4 pairs to have enough opportunities to pick the nicest conditions. I actually have a very advanced alert system if anybody is interested in it for VT trader. It includes many settings for 2 envelopes, and the fantail expansion setting. It takes much to explain setting it up. The basic versions are already available though on the coding forum.

There seems to be a many versions of the VWAP out there on different platforms. VWAP Based Pivots | NeoTicker Blog Anyhow I thought I would add this aspect for definition before the thread progresses or gets confusing. For Quote tracker it is a line that changes location according to how many bars you have on your screen viewing at one time (panning). Well, I get frustrated with the limited time to edit a post, so please bear with me as I post a clearer chart that I would have preferred.It relates to my previous post about a complex hidden indicators, made useful by paint bars and alerts. The paint bars are showing up in vertical concentration at points of trend weakening. The light blue line is the VWAP.

For me it comes down to how will the market respond to the tool? There are so many indicators and lines to put on a chart. I think that more people use pivots and respond to them. Remember that there are daily, weekly and monthly pivots. I put the weekly on my 60 minute charts and daily on my 5 minutes. They carry weight like trend lines. I use the VWAP for isolating a conditional trade that has a high predictability. It is like pattern recognition and specific parameters for execution. My charts can lean to the complex side, because I am very familiar with my tools and I prefer the confirmation of as many tools that enhance the outcome, and filter fakeouts. Why settle for two, when with careful work and paintbars, you can have confirmation, visuals for stops, cycle forecast lines, and alerts to make trading more precise, and for me simpler. It is a checklist. Some people don't care for complexity. For me the basic simple chart is like binary computer code of zero or one. The advanced chart like a programming language. Finally there is a highly functional chart, like windows operating system. The complexity is hidden behind paintbars and alerts. The design work is refined and for each market condition, the tools are available. When you have a question of validity of a trade, there are confirmations and preset qualifiers. Also with alerts, you are not watching the screen over trading. So to keep with the subject, use them both, and develop tools to determine market conditions that they work best in. I attached a chart that is an example of what I mean by paint bar simplicity. It is running about 30 tuned indicators that are hidden, but trigger when the paintbars show. So simply when I get a vertical concentration of paintbars it means to me, the trend is weakening, get ready for a pullback or some choppier trading. The paintbars are color coded for early warnings in oscillating markets, and some to find the momentum tops of longer trends. Quotetracker makes this process reasonable to set up.

Yes I agree on the usefulness of timing the major trend entry points. Some of these high percent, (small pip scalps) auto entry plays are conditional on such things as avoiding market openings, squeeze breakouts, and announcements. They have been very nice on the 5 minute forex pairs the last few days. I would post charts, but I want to focus on the 60 minute today and keep these posts relatively simple. I will pass along my 60 minute bars perspective to relate to the good suggestion about market conditions. The higher time frame allows for perspective regarding the boundaries and strength of longer trends. First the basics of the attached chart colors. The pink solid line is the 50 ema. First dotted pink envelope nearest it, is the 60 pip envelope. Outer pink dotted envelope is a 90 pip. The dark green line is 600 ema, dark blue 250,, light blue 14. Black dotted (A) is a 150 pip envelope from the 250ema. This chart is used with the 5 minute entry points (and the colors set up to your preference). My first use of the 60 minute is to look for major MA convergences, after they have been separated for awhile (first touch). I show one of these with the light green elipse. Most importantly is the 250 and 50 cross. This usually follows through with a strong move following. In this example the market shows (with the red box) a channel forms and breaks out up. This perspective is useful for the tendency of the breakout to be in the direction of price action relative to the ema's. The box is mostly formed above the 250, 50 and 600 ema's and generally breaks up. This is true in a freshly formed trend. Also the breakout often occurs around forex or US stock market openings. Next is the general boundaries of extended trends. Above the "A" area is oscillating market conditions. They usually stay in the 60 to 90 pip ranges. You can see how the black dotted envelope catches the range of the extended trend runs. Also I overlay the weekly pivot points over this chart, and the daily over the 5 minute to assist with stops and confirmation. I generally use the 5 minute for precise timing, but when the trend is strong, I need the 60 minute to see where it may weaken. So in review this system is useful for estimating trend boundaries, channel breakout direction, perspective on market condition(oscillating or trending), and looking for convergence breakout strength.