waveslider

Hello Dr. - welcome to the board. I wonder what your experience is with clients using a set daily profit and loss targets. I believe it is good for a trader to quit trading once they have reached a certain losing point on the day, to avoid a downward spiral -revenge trade scenario. However, I have not formulated an opinion on profit goals. My profit goal for the market I trade (YM) is approximately 1/3 the daily range. Today I pulled out 78 pt., a good day -more than double my normal target. But as I was sitting up 32 pts. on the day I was considering calling it quits. In this case that would have been a mistake. I would appreciate your professional opinion, Thanks.

Hey Walter you might want to check out the indicator I posted called 3bar, it's in the indicator forum. It identifies what you are looking for visually. I have tested it doing what you are doing, and it tests well..

Good point nopoint(?!) - also to know exactly what you are looking for before trading (patterns/threshholds/etc.). Never good to change the plan midstream. Like you said, when you have a bias, you know what patterns to look for, or which side to lean towards.. For example, if markets are ranging, you might want to fade the range only in direction of previous trend in anticipation of the trend re-asserting itself..

its an indicator that should be plotted as dots. if there are any programmers out there, please post any bugs... thanks

Here is the .eld code for 3bar. As a PS to that last note - I wonder if anyone has done any work with dispaced moving averages/price channels. These seem to be a good way of telling when the trend has slowed and maybe stalled out. It's hard to see this in retrospect since you can't actually see the shift in real time, I am starting to watch it a little bit now to see if it might be useful. I think Hurst did some work on this idea.. If you need the ELA text you can PM me. thanks

Thanks soultrader, I am not familiar with Dalton and maybe should do a little reading. Something else that tells when price is balancing out is price catching up with time, this is the same idea as what you stated I believe. The idea is that the trend will slow down and "recharge" before it makes its next move -continuation or reversal. Either that will happen or there will be a capitulation "washout" move signaling reversal. One thing to note is that when one of these levels is broken and price holds above or below the dotted line, it will normally come back and retest the other side of the dotted line from the other side. So in other words, resistance becomes support - not a new concept, just a different way of visualizing it. Here's a chart from friday's session that shows that happening.

Hello, This indicator is designed to indicate trend and potential support/resistance levels. It originated from my work with the wide range bodies and their translation into tick charts. My theory is that wide range bodies appear in tick charts as consecutive bars higher or lower (3 bars with higher highs, higher lows, etc.). It's not an exactly true translation, but often it works out that way in my experience. Taking the theory one step further, if you have 2 sets of 3 consecutive up or down bars, you normally will have a trend intact. This indicator recognizes (bullish example) when there is three consecutive bars setting higher highs and higher lows. Then it looks for the occurrence to happen once again and sets a dotted line where the pivot was that started the move. New lines will appear as the trend progresses and new legs appear. These lines are areas of support within the trend. If price begins to run into the lines, then you have likely run into a range and should look for range trades as opposed to continuation trades. Once the range fails you get flat until new trend bars are established (this is beacuse the range may just expand to shake more people out). I am posting this for feedback. Since we each have a diverse approach to trading I would be interested to see if anyone finds this analysis fitting into their style well. Getting late, sorry if I don't make much sense here - -here you go. PS> the indicator is designed to run on tick charts, maybe on volume bars as well. 3BAR.ELD

Oh yeah, you can't use tick or volume charts for timing, it has to be linear..

People are really fascinated with timing the markets, very few have success. I have spent many hours looking at timing methods, I submit here that if you want to do the same, don't expect to find a solid method that will make you lots of money, do it for your own fascination. I have found a few methods that do work consistently. Here is some guidance: There are so many waves in a market (imagine a choppy ocean) that the interference causes timing to become skewed. However - there is a good time to use timing methods! This is when a "new" impulse is introduced to the market. So an example would be when the market is gone through a period of low volatility and suddenly explodes. A simple way to time a move like this is by just using your fib time tool and mark the "a" to "b" leg of the wave, then use a 100% extension of this leg. If "c" is not formed before this 100% mark, then the "a" to "b" move is invalid and will likely resume the previous trend. This a simple example. There are much more accurate methods, and the ones I know of involve using that primary impulse wave as a measuring gauge for where and when the next move will develop. Anyone who tells you they can know when each move will begin and end is definitely full of it. But in specific instances where a new, powerful wave over-rides all the other chop in the market, this is where you should pay attention. Hopefully this can point some people in the right direction and save some time for the grail searchers looking to time every move....

In agreement with blowfish, I think that if the fib timing works, it is an art to do. I have done some testing also and the problem is that there are so many inverses in the market. So selecting the proper points is the key, and they are rarely the peaks/troughs. Timing always will have this issue. It's never dependable as a primary entry or exit mechanism, so probably not worth bothing too much with. My opinion is its better to spend time on money management techniques - that's what really affects your account!

I'm listening to Tortoise, and a band called the Bad Plus. Instrumental post-jazz stuff - both are coming to Vancouver for the jazzzz fest - I'm there..! Instrumental and complex, real instruments, not drum machines.. if anyone has suggestions I would love to hear them.

Hi, sorry if I am overstepping my bounds here, but in the TS forum I believe this TTM squeeze you are looking for is called "nickmnextmove" - something like that. This is all free stuff, if you know what you're looking for, who wants to spend an hour going through 72 page long forums to find it! Better to be watching the market and waiting patiently, attentively. Coding can be so distracting, and tempting! PS does anyone actively apply this to market internals or the tick? That would probably be a decent application. I've watched it on stocks, futures and you better have a bunch of filters and know exactly what you are looking for otherwise it is clutter.. IMO

HI Pivot, As we both know, WRB is no silverbullet. As with any indicator, method, there are time when it is better to actually flip the system and do the opposite. So a bullish WRB (close above open for this example) could actually be a sell signal. This little indicator does use close>open as a bullish indication, but it is nothing without the proper filters applied. I enjoyed your analysis. And I agree, just using close > open as a bullish analysis is incorrect. However it can be use-able as is. Say you have a "bullish" WRB at the top as you did - this market could still be considered bullish and above support as long as price remained above the open of that bullish bar. In fact after the bar you showed at the top there, price was caught in a range, possibly preparing for a move higher? Possibly not. If we can agree that WRBs (bullish or bearish) mark important support and resistance then maybe we can leave it at that and each use that info for what its worth. What you are doing in your analysis is something that could not be replicated with a simple indicator. To me, indicators are only to grab attention and provide confirmation based on proven probabilities, I'm sure you would agree. slider

You can't do intra - bar orders with limit orders in Tradestation. You can only buy/sell on close. Orders for the next bar may have limits.. You could have it buy or sell next bar at close (of the previous bar) limit.

Yep, It aint rocketscience, but it tells you where you are. If you combine multiple timeframes it might be more useful.. I have it on my screen and it serves as a decent filter to keep me from top/bottom picking. Maybe if I watch it longer it will give me more ideas..

Using tradestation and 89 tick charts ..

Hi, thanks for the responses. I am familiar with JR and have found him useful in a common sense way. What I prefer about WRB is that they show reactions on either side of price action, establishing where buyers and sellers are. I see what you are saying about the doji part Nick. I use tick charts however and they seem to come out differently. Keeping it simple, as you see in the chart I am posting, when close is between 2 wide range bodies (I trade YM and so I use a 20 pt. max between these two), I define it as congestion. Look at the bar thing above price and you can see that when this happens it flips yellow. WRBs are denoted with purple spots. When price once again closes outside of the range, color turns to red or green. So I am just trying to generate some ideas on this board here, sound off and get opinions. While I'm on it, I have done some testing and found that by counting the number of bullish WRBs compared to bearish WRBs you have a pretty good trend/bias filter. Spark any ideas? I attached a picture, not sure if it worked.. slider

Hello, I am new to trader's lab. Happy to see quality discussions going on. I have read this forum and would like to bring up an idea regarding WRB. My objective is to identify congestion here. An example: A bearish WRB and bullish WRB occur in the same price vicinity. Subtracting the open of the bearish WRB from the open of the bullish WRB, can this be established as a range, particularly if they overlap? The way I am identifying the open of the bearish and bullish WRBs is as resistance and support respectively. Would this be a correct analysis? I would consider the price held in this congestion as long as close remains below/above these levels. Thanks for your input. slider