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UrmaBlume

Continuation Trades

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What are the pattern(s) we should be looking for to take a continuation trade? I know you mentioned that a continuation trade occurs - for example a buy - when there has been a large histogram on the V94 window, which is positive as price moves up, then on the retracement we want to see the histogram go to zero or only slightly negative. I was looking for this today on the ES, but wasn't sure how to integrate the multiple timeframes with this. Also, if one waits for the histogram to turn from moving in a negative direction to moving in a positive direction, one can be about 3 bars late from the actual turning point. How can we position ourself for a more timely entry? Thanks.

 

Mead,

 

Thanks for the query.

 

Most users of the TPS Indicator Pack look to make 3 kinds of trades - Reversal, Confirmation and Continuation.

 

Regardless of time frame, continuation trades look to take advantage of a trend. Using the indicator pack there are several indicatons both from price and from V94 and NNT.

 

The first indication of a trend is continuing Lower Lows or Higher Highs in both price and the indicators. Depending on the setting the price chart will indicate trend from either price and the center strip MA or from the RDot Pivots. Higher High Pivots as well as Higher Low Pivots along with higher changes from Red to Blue in the center stripe dots indicate an up trend in price.

 

As you will see in teh charts below, the V94Window indicates trend three different ways:

 

  1. V94Window indicates an up trend with a very small departure below zero after a much bigger excursion above zero

  2. V94Windo can also indicate trend with a series of readings, all of which are either above or below zero as shown below

  3. V94 can also indicate trend with a series of wither Higher Highs or Lower Lows

 

The Net New Trade indicator indicates trend with either a series of Higher Highs or Lower Lows or a continuous, steep, run.

 

If you are reading these indications of trend in the higher time frames you can get a more timely entry, so you will not be "3 bars late" by looking at the fastest time frame.

 

This first Chart shows continuation in an up trend via very small departures below zero in V94 and well as continuous higher highs and higher lows in both Net New Trade, Price and in Price Pivots:

 

Please Click to Enlarge Image

tpt509.jpg

 

The next 2 charts show the continuation of an up trend via both Higher Lows in price as well as very small departures below zero in the V94Window:

 

 

Please Click to Enlarge Image

tpt608.jpg

 

Please Click to Enlarge Image

tpt609.jpg

 

These next 2 charts show trend via the V94Window with a with a series of readings, all of which are either above or below zero:

 

Please Click to Enlarge Image

tpt605.jpg

 

Please Click to Enlarge Image

tpt592.jpg

 

Next week I will record and post a webinar demonstrating Reversal Trades, Confirmation Trades and Continuation Trades using the Indicator Pack.

 

cheers

 

pat

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It seems like this charts are good in hindsight.

 

Sometimes they even offer foresight as in the chart directly above - note how the spike foretells the extreme and the divergence confirms it.

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