waveslider

dogpile, have you found a way to get this info from the matrix w/o having to leave it on all the time (cumulative data)?

Unable to display content. Adobe Flash is required. leavitt brothers have some good insights from time to time. This ones on psychology, maybe you could use it?

Sorry Tasuki, it is an hourly chart. They're trying to make a run at it this a.m. As far as an indicator, I have never seen a good one. Seems likely there won't be a good one, the pattern can have so many nuances... Anyway, glad to be of help. Keep looking and you will see them. Look for the #2 point first, it stands out the most since it is a recent high/low. If you see a good one and post it we'll both benefit!

YOW I don't think I've ever seen a chart that looks that bad!

I don't like the looks on pt #5 on this chart. If that's all we're going to get for a fakeout lower, it looks like volatility is dying in this market. You want to see some good tails at that #5 location. Looks like the market may sell off a little tomorrow in the a.m. Maybe that will be the scary run for it. If the # 5 isn't convincingly taken out, then the lower target line is more likely. We'll see.

I think they used to be used more often when they gave a greater edge to the floor traders. That was when it was more of a boys club and they gave the wink as everyone got faked out at those levels. Now they're just points of reference like a 50 and 200 day MA. Psychological levels. I think you could visually look for congestion levels on a chart, weighing recent action more heavily, and do better than these lines. That's all MP is anyway..

Hi Tasuki, I can tell you what I see, but the more you see the pattern, the more you will get a feeling for not just wolfe waves, but market geometry in general. Pull up the chart I drew and walk through it with me. The #1 point should occur within a range, not at an extreme. The reason for this is that #2 is a recent high or low and should panic people and cause volume. Above #3 point is where those who entered short will be setting their exits (bearish pattern). #4 point is a higher low putting confidence in longs. #5 point is where shorts cover and breakout traders enter long. Then volume evaporates and the move fails, causing a quick move back to the 1-4 line. That's the psychology of the pattern. The chart you posted does have a pattern, but it is distorted. Imagine if your point #3 was a high instead of a low. Then you'd just have one big wave. What happened instead was a distortion into a mild expanding (broadening) pattern designed also to shake out longs. I hope you can follow me on that. Post some more charts.

check out the vwap color gradient I put in the coding section last night, a fun way to see it.

I have communicated with suri duddella personally from time to time over the years, he is a knowledgeable trader and programmer. He self-published the book and is not strictly an "author" as many are on the subject. It's amazing how many authors/promoters in this business do not even trade anymore. Maybe its not so amazing. There are even more traders who drop big $ on this stuff.

Here's a picture. So if you are in the green or neutral color, and are just chopping around there - that would be a good indication that the market is locked in a range. A strong movement away from VWAP would change to a darker color, and a lightening of that dark color usually indicates a good pullback for entry - if that's your style.

Hi I am having fun with gradient colors now. This paintbar examines absolute distance from the VWAP. It calibrates as the day moves on, so best as a short term intraday indicator. any suggestions on improvement? VWAP GRADIENT.ELD

Tasuki, the QQQQ chart you posted - I remember that one. I think the #5 pt was too deep to take the pattern seriously. I have watched gartleys trade, but don't believe too much in the fib #s. To me, fibs are too static. Waves in the market are always changing size and proportion. Fibs can work fine for a methodology with good money management, but so can many things. One thing - don't take the timing of the WW seriously, it's very flawed. There are better timing methods. Even measuring distance b/w peaks/troughs. There is a great book by a guy named Suri Duddela that gets deep into butterflies/gartleys. I know his work, but haven't read the book, heard it's good.

The one you posted is not a true WW, but it does work. Remember that the #2 pt should be a recent new high or low. There is a WW in the chart you posted. Note how precise it is. The volume at pt. #4 was a good indicator. Tasuki- What you posted is a version of the pattern. It does work often, but not as consistently as if you follow the rules. Post a recent, uncompleted one so that you can watch it play out live.

Hi Dogpile, You offered some interesting and unique ideas. Question for you, how do you quantify the 40k share volume at one price? I guess you would use the matrix window? The one caveat I would add to what you said about the need to chop would be regarding run-away days. For a bullish move, a gap in the opposite direction of the previous day's close which forms a low to high day. Rare yes. Interesting to note that ES price faked lower first, then faked higher. Failed both moves away from the opening range and then closed at exactly the 50% level on the day, exactly at VWAP. As you mentioned, price spent more time above the 50% level, as seen in the market profile. There is support in the market here, but sellers are holding it down. A good washout bar below resistance could trigger a quick move higher. I think we will see that tomorrow, on "turnaround tuesday". Likely price will make some kind of attempt to close the gap overhead created by last Thursday. More churning around 1505

I've done the same, over-ride the system and the profitability suffers. My opinion is that if the system works, use it and then you can play around when you are rich. Discretion is more fun. What are those cool colors you colored your candlesticks with. I didn't know you could color candlesticks with TS

Hey Dogpile, When taylor was around there wasn't a VWAP. During the past 10 years it seems like VWAP has gotten more and more attention, and become a real psychological point that many traders watch. I have been watching a modified idea of Taylor's, using the VWAP instead of highs and lows. The idea is that following a buy or sell day (for our interpretations here, a low to high day or high to low day respectively) should come a test and rejection of the previous day's VWAP. Does this spark any ideas?

Bfish can you post a chart? Think I understand what you are asking and, yes that #4 pt should be well below the outside channel line. There should be a wedge formation. Here's this same chart again, with more price data now. This is what is going on. Currently the market is in balance, the axis is the yellow line on the chart. Notice how the yellow line aligns with pivots on both sides of where it crosses price. Then notice how the line splits the pattern at the 50% mark. The purple line below is a place where the market could accelerate lower. It is below the pivot #3, so those using that point as a natural location for their stops on a long position are going to sell here. Momentum players will jump on for what looks like a "matching move" lower (Many famous technicians mention matching price moves). What often happens is that the move lower is rejected and, like a rubber band stretched in the wrong direction, it shoots higher for one last touch of the yellow line. This happens in a volatile, ranging market. In a market where volatility is dying, a descending triangle occurs, and a move lower eventually comes. So, bottom line with this one is that if price does a quick move lower and is rejected, the pattern dictates a move to the yellow line. If the market holds friday's lows, it will likely fill the gap from Thursday to Friday, and then re-test. This would invalidate the pattern. Last option is for a move lower that accelerates below the purple line. The natural target for that would be a matching move lower to 763 (I think probably lower).

In the format symbol first window, there is a drop down menu which you can set to exchange time or local time. Try that.

HI blowfish, I think you mean a channel line b/w points 1 and 3. Yes I agree, if this is truly a top, then the pattern is not valid and momentum will carry the price down below the 1-3 line. The 1-3 line would then act as resistance and I would use the 2-4 line as the accelerated channel line. ( I think you understand this since you know channels, sorry for anyone else who is lost ). Basically what this is is a descending wedge pattern. When the lower line of the wedge breaks, 2 things can happen. 1. Price accelerates in a downward direction and a quick move down is made (down trend is intact). 2. Price tests lower line and rejects. In that case a dramatic reversal is made fueled by the short covering of those who sold short on the break down, and those re-entering that lost money on the previous attempt higher at point #1. (This means the market is locked in a range). Sorry if this is a ramble, need to drink some water and coffee to wake up.

Parsons is an good guy and hard working teacher. He has an excellent book on channel trading which I would recommend to any visual type trader... Potential pattern developing in ER2. A volatile reversal off of the magenta line would spell a move to the yellow line. Lowered volatility and drifting lower means the pattern is not valid and a move lower to about 772. Blue line is currently support. I'll post this same chart later to see how it all works out. The lines below are just volume and a jurik MA of volume.

HMF=high made first LMF=low made first I don't know about the others... Good points made. What about BU and BH?

There was a pattern here, but unfortunately you didn't see it according to the chart you posted. If you use a conservative entry, the trade was not activated since the cyan line went unbroken. If you fade the entry this was a pattern failure. It was a pretty ugly one all around. If point 5 would have appeared a little earlier it probably would have worked. The target line was the line connecting 1 and 4. I advise you to go to wolfe's website and study the pattern again.

http://traderfeed.blogspot.com/2007/10/intraday-movement-in-s-500-index.html for the quant people, some data on hitting highs/lows of previous day

Ah ha! you have a pretty good grasp on market geometry! What you have identified is a balance point that those lines are shooting through. Your point #1 is equally valid, I was being conservative with my point#1. In essence, my point#1 gave the first target, the other 2 you had were the next targets. Personal preference note: My 1-3 line was downward sloping for a bullish target. I like these wedge failures. Do you use Andrew's lines, Blowfish? Also - there's a great book on channelling by a guy named M. Parsons called Channel-Surfing. A cheesy cover but very good book.

Here's one I just took in ES. This is a 3 min chart. The one point was a little tricky to notice. The important thing to note is that the 1 pt. occurred in congestion. It was actually an inverse point, the momentum that broke out of the contracting pattern started wave 1. The target line was drawn between pts. 1 and 4. The trigger line was drawn using pts. 1 and 3. Entry was near pt. 5. If you just took a breakout it was worth 2 pts. I took this trade because of a variety of factors; Lack of intraday trend, ER2 under-performance indicated that an uptrend was unlikely, range would continue. If you look at the volume on the bars I circled, you can tell the story and see where people got psyched out. Probably would have been good to watch the TICK or TIKI to look for extremes. Again, you had to have a trained eye to catch that pt. #1. Looking at balance and wave dynamics helps.