Turtle Trading System:
Interpretation:
Turtle traders used Breakout Style in TA trading. They used a moving average that no one knows that which period of moving average did they used but I prefer 30days WMA OR 40days WMA. The yellow circles shows the breakout sign.There are three Donchian channel , upper AND lower channel is pink colored AND middle channel is bright green colored. Bar candles crossing the middle donchian band having breakout Signal shows the buying time. Bar candles crossing down the middle donchian channel having yellow circle shows the selling time. Always take the signals as a Buy Signal after creating a higher Low AND avoid trying to catch falling knife at lower lows.
Buy Signal:
- Higher Low is created
- Bar candle crossed the middle donchian from below AND yellow circle appears.
- More strong if the bar candle is blue.
- Use Volume spiker to detect the Volume breakout which is most important.
- Use Twiggs Money Flow/ OBV indicator to detect Volume trend. Line crossing -0.10 is a bullish sign.
Sell Signal:
- Close your buying positions when the price breaks down the middle donchian channel AND Volume is bearish.
- Crossing down the 0.10 in Twiggs Money Flow is bearish.
06 July 2011
Ilmu Saham | ISX Stock Market Resource Center AMIBROKER: THE TRUTH ABOUT VOLATILITY
In “The Truth About Volatility,” Jim Berg presents how to use several well-known volatility measures such as average true range (ATR) to calculate entry, trailing stop, and profit-taking levels. Implementing techniques presented in the article is very simple using the AmiBroker Formula Language (Afl), and takes just a few lines of code.
Listing 1 shows the formula that the plots color-coded price chart, trailing stop, and profit-taking lines, as well as a colored ribbon showing volatility-based entry and exit signals. The relative strength index (RSI) used by Berg is a built-in indicator in AmiBroker, so no additional code is necessary. See Figure 3 for an example.
AMIBROKER, VOLATILITY SYSTEM
FIGURE: AMIBROKER, VOLATILITY SYSTEM. Here is a sample AmiBroker chart demonstrating the techniques from Jim Berg’s article in this issue.
LISTING 1
EntrySignal = C > ( LLV( L, 20 ) + 2 * ATR( 10 ) );
ExitSignal = C < ( HHV( H, 20 ) – 2 * ATR( 10 ) ); Color = IIf( EntrySignal, colorBlue, IIf( ExitSignal, colorOrange, colorGrey50 )); TrailStop = HHV( C – 2 * ATR(10), 15 ); ProfitTaker = EMA( H, 13 ) + 2 * ATR(10); /* plot price chart and stops */ Plot( TrailStop, “Trailing stop”, colorBrown, styleThick | styleLine ); Plot( ProfitTaker, “Profit taker”, colorLime, styleThick ); Plot( C, “Price”, Color, styleBar | styleThick ); /* plot color ribbon */ Plot( 1, “”, Color, styleArea | styleOwnScale | styleNoLabel, -0.1, 50 ); –Tomasz Janeczko, AmiBroker.com www.amibroker.com
http://ilmusaham.wordpress.com/2008/06/01/amibroker-the-truth-about-volatility/
Listing 1 shows the formula that the plots color-coded price chart, trailing stop, and profit-taking lines, as well as a colored ribbon showing volatility-based entry and exit signals. The relative strength index (RSI) used by Berg is a built-in indicator in AmiBroker, so no additional code is necessary. See Figure 3 for an example.
AMIBROKER, VOLATILITY SYSTEM
FIGURE: AMIBROKER, VOLATILITY SYSTEM. Here is a sample AmiBroker chart demonstrating the techniques from Jim Berg’s article in this issue.
LISTING 1
EntrySignal = C > ( LLV( L, 20 ) + 2 * ATR( 10 ) );
ExitSignal = C < ( HHV( H, 20 ) – 2 * ATR( 10 ) ); Color = IIf( EntrySignal, colorBlue, IIf( ExitSignal, colorOrange, colorGrey50 )); TrailStop = HHV( C – 2 * ATR(10), 15 ); ProfitTaker = EMA( H, 13 ) + 2 * ATR(10); /* plot price chart and stops */ Plot( TrailStop, “Trailing stop”, colorBrown, styleThick | styleLine ); Plot( ProfitTaker, “Profit taker”, colorLime, styleThick ); Plot( C, “Price”, Color, styleBar | styleThick ); /* plot color ribbon */ Plot( 1, “”, Color, styleArea | styleOwnScale | styleNoLabel, -0.1, 50 ); –Tomasz Janeczko, AmiBroker.com www.amibroker.com
http://ilmusaham.wordpress.com/2008/06/01/amibroker-the-truth-about-volatility/
Economic and Technical Market Indicators for Stock Buying and Selling Decisions
Economic and Technical Market Indicators for Stock Buying and Selling Decisions
When trying to determine if you should buy, sell, or hold a stock you will often look for indicators as to what the market is going to do next. Unfortunately the best stock market indicators are subject to opinion, even the greatest don't seem to agree on which indicator is the best for determining future market direction.
The best thing to do is learn all the popular indicators and use them when trying to make a stock entry or exit point decision. This is of great importance to an Individual Investor who has to make important stock decisions based on all the data they can get their hands on. Don't leave without checking out the commodities section, also have a crude oil dashboard, excellent for crude traders.
This website was created to be a central location for several important indicators, this site can be used to quickly check the status of the US and World Economies. More indicators are periodically added, so you may want to link or bookmark for future reference. There is nothing worse then going long when the market has peeked and starting to go down, if you keep a close monitor on these indicators maybe it won't happen to you. Good luck with all your future trades!
Best Economic Stock Buy/Sell Indicators
Click Here For The Wall Street Journal
Economic Market Indicators are more important to the Trader who is making buy/sell transactions on a longer period of time. If you are holding stocks for several weeks or months then the economic indicators are of great importance.
Rail Traffic Car Loadings
This indicator monitors the amount of goods transported via rail. There are graphs for weekly loading data, year to year comparisons, and rolling averages. The Wall Street Journal said the railfax reports are one of the timeliest gauges of economic activity. More information on understanding the Railfax Economic Indicator. There could be some benefit or early market indication by tracking the actual stock price of the largest railroad companies like Union Pacific Corporation (UNP).
Baltic Exchange Dry Index
This indicator monitors worldwide shipping prices for dry bulk cargo. This is a very good leading indicator due to the goods transported being the materials used to produce goods. Companies don't order materials unless they know there is a future demand for their products. More information on understanding the Baltic Dry Index Market Indicator.
ATA Truck Tonnage Index
The American Trucking Association collects tonnage data being transported each month from all the major carriers. More information on understanding the Truck Tonnage Index Market Indicator. You will have to search for the Tonnage Data on the internet due to a membership being required to view data on the ATA site, the tonnage data graph can be found periodically at Calculated Risk Blog.
Calculated Risk Data via FeedBurner
Feedburner provides the latest data provided by Calculated Risk, when new popular economic data is released it usually shows up quickly on feedburner. More information on what is Calculated Risk Blog. A few of the market indicators found there are NAHB Builder Confidence data graph, Industrial Production, Capacity Utilization, Consumer Sentiment, Retail Sales, and Trade Deficit.
Equity Fund Inflows & Outflows
The Fund Inflow/Outflow data is a very good market indicator for determining if money is flowing into the market or being pulled out of the market. When money inflow is increasing this is a bullish sign. The data at the link above is only for the most current reports, the website requires a username/password for full access. For more information see our sample Weekly Equity/Bond Inflow/Outflow Chart.
Online Daily Price Index Indicator
This Inflation Index tracks very closely with the CPI but the data is updated daily, this can be used as an early market indicator. MIT currently monitors daily price fluctuations of ~5 million items sold by ~300 online retailers in more than 70 countries. Once you arrive at the website you will need to select the country to load DPI data. *Currently only displaying the world inflation index. The Billion Prices Project @ MIT.
Bureau of Labor Statistics
The Bureau of Labor Statistics is a government site that holds all the data for the most important economic indicators; Inflation & Prices, Employment, Unemployment, Pay & Benefits, Spending & Time Use and Productivity. This site will display graphs for specific economic data or you can actually pull the raw data for your own use. Use the top picks button, retrieve data, then check box add graph.
Federal Reserve System Statistics Data
Federal Reserve Data for download on Bank Assets and Liabilities, Business Finance, Exchange Rates, Flow of Funds, House Hold Finance, Industrial Activity, Interest Rates, and Money Stock and Reserve Balances. This data from the Federal Reserve is economic indicator gold! Interesting find on this data - Aggregate Reserves of Depository Institutions and the Monetary Base - H.3 - Starting in Aug 2008 the Bank reserves has increased and maintained an extremely high level with respect to the previous 50 years worth of data.
US Unemployment Rate
The US Unemployment Rate is a very popular market indicator, this site gives some very nice graphs including min, mean, and max for any user determined time line. Unemployment Data graph from the United States Department of Labor.
Gross Domestic Product (GDP)
The Gross Domestic Product is the measure of value on all goods and services produced domestically by a country. The GDP is one of the main market indicators for determining how well a country is doing as a whole. The GDP correlates very well with the standard of living.
Economic Events Release Calendar
Get the latest and past economic indicator release data for help in determining the market direction. Future economic release events can also be viewed. Economic indicators are listed for all major countries. You can also click on the event and options will come up for data graphs or previous raw data.
Market Monitoring Trader Tools
Latest Breaking Market News (MarketWatch)
Stay ahead of the stock trading game with the latest news that can take markets up or down quickly. MarketWatch also has a nice chart app that shows the Dow, S&P, Nasdaq, Global Dow, Gold, and Oil all within the same window. There are tabs for Europe, Asia, and Currency chart data. You should always compare multiple news outlets to filter out any network bias, here are a few other market news websites to monitor: CNBC Market News, Bloomberg Market News, CNN Breaking News.
US Market After Hours Quotes (CNN)
After Hours quotes for the Dow, S&P, and the Nasdaq futures market. Get a look at what the market is doing before the actual NYSE trading day begins or after it has ended. CNN list after hours future graphs for the major 3 US indexes. Here is a second source for After Hours Futures Data from CNBC, CNBC usually has the more current data, not real-time but close.
Insider Stock Trading Market Indicator
Insider buying can be viewed as a positive sign for the stock or market while insider selling can be negative or bearish. View the Daily Real-time Insider Trading Reports for buying and selling. The top page will show a pie chart for the current day of buys versus sells and company position.
World Stock Markets
Tracking all the major world indexes can give you an indication of where the us market could be headed. The link above shows major indexes for North/South America, Europe, and ASIA. When another country starts having economic issues it can start spreading to other nations and this should be monitored.
World Currency Market Indicators
World currencies can be used or monitored for many different economic signals. When the US dollar drops against other currencies this can be beneficial to large US companies which earn money through exports. For determining how the US dollar is trending use the Real-time - US Dollar Index Spot. There also is an ETF that tracks the US Dollar, UUP - US Dollar Index (Bullish).
Forex EURO Dollar Real-time Dashboard
The Forex market is the trading of world currencies, a few of the most popular trades to put on is the EUR/USD, USD/JPY, AUD/USD, USD/CAD, EUR/CHF, EUR/JPY, and EUR/GBP. The more popular (liquid) the currency pair the lower the pip spread, this allows you to make profit quicker. Forex allows for high margins (high risk), typical is 50:1 for US accounts.
EUR/USD Advanced Forex Chart
If you are looking for some free real-time advanced charts then Forex Pros has some great tools, they also allow you to view their members sentiment from Bearish to Bullish percentage. Advanced charts are available for most all currencies.
Popular Commodities for Monitoring Markets
[Most Recent Quotes from www.kitco.com]
[Most Recent Quotes from www.kitco.com]
Click to enlarge
Copper Metal Price
Copper is used in the manufacturing of all types of consumer goods, so the price of Copper can be a good indicator for determining the amount of products being purchased. Multiple charts can be found at this site from 24 hour all the way to 5 year graph of price levels.
Silver Metal Price
Silver is used in the manufacturing of all types of consumer goods, so the price of Silver can be a good indicator for determining the amount of products being purchased. Press Ctrl and Click Refresh for Chart Updates on the right.
If you trade Silver on Forex or US markets using ETFs check out our Real-time Spot Silver Dashboard. We also have a Real-time Spot Gold Dashboard.
Crude Oil Price Monitoring Dashboard
Crude Oil Dashboard
Crude Oil prices can be a stock market and economic indicator due to the impact on consumer spending as prices fluctuate up and down. Click here for Real-time Crude Oil Dashboard, multiple time increment crude oil charts. ETFs can be a good trading vehicle for commodities. Monitor Crude Oil using Weekly Crude Oil Prices/Stocks/Production/Imports Data.
Natural Gas Weekly Price Chart
The price of Natural Gas can indicate that manufacturing is increasing or decreasing due to the use of this energy source, more demand brings higher prices. Learn more about what affects Natural Gas Price and get the latest NG Underground Storage Data. This indicator has lost a little of its luster due to the new fracking process which has led to an oversupply.
Best Technical Stock Buy/Sell Indicators
Technical Market Indicators are more important to the day trader who will be making buy/sell transactions on a short period of time. If you make stock trades throughout a single day in minutes or hours then the technical indicators should be observed constantly.
S&P 500 Percent of Stocks Above 50 DMA
This Stock Market Indicator gives the total percent of stocks inside the S&P500 index which are trading above their 50 day moving average. This is a quick way to see a large scope of 500 companies stock price direction or momentum. When this indicator starts rising it shows the stock market in general is turning bullish.
NYSE Summation Index (EOD Update)
This Stock Market Indicator gives a cumulative sum of all daily McClellan oscillator readings for the NYSE advance/decline issues. The daily McClellan Oscillator is a momentum indicator that is applied to the exchange advance/decline stats.
NYSE Bullish Percent Index (EOD Update)
This Stock Market Indicator takes the total number of NYSE stocks with a positive Point and Figure buy signal and divides by the total number of stocks in the NYSE. A P&F stock buy signal is a column of X's going higher than the previous column of X's.
Basic S&P 500 Daily View Chart
The Basic Chart of a Major index like the S&P 500 with 50 and 200 day moving average lines is a commonly used indicator to quickly determine where the market currently stands.
S&P 500 P/E Ratio Chart
The S&P 500 P/E Ratio is the average P/E of all stocks which make up the index. The S&P 500 P/E Ratio is a very good market timing indicator.
Volatility Index (VIX) Market Fear Indicator
The VIX is used for determining the volatility of the current market. The higher the number the more volatile or greater the price movement swings will occur and usually coincides with bear market conditions. When the VIX is 20 or below this is usually a time of more stable prices and is a bullish indicator.
CBOE Put/Call Option Ratio
The Chicago Board Options Exchange monitors the amount of put contracts and call contracts that are purchased. They turn this into a ratio and this is then called the Put/Call Ratio. When this ratio is below 1 it signals bullish market conditions due to more people buying call options. When the number rises above 1 the opposite holds true, more people are buying put options.
CBOE Option Total Put/Call Ratio Graph
This Stock Market Indicator charts the daily CBOE Put/Call Ratio with simple moving averages to help eliminate the noise or sporadic data points. The chart link is set with daily points invisible, the line data is set on 2 Day SMA, 20SMA, & 40SMA.
Market Breadth Indicators
The Breadth Indicators are for graphing the new highs versus new lows and Advancing versus declining issues for the major exchanges. The breadth charts are for the New York Stock Exchange, the Nasdaq, and the AMEX.
Arms Index (TRIN Definition)
The TRIN is a short term indicator derived from taking the Advance/Decline Issues and dividing by the Advance/Decline Volume. Here is a graph of the New York Stock Exchange TRIN. The TRIN number swings wildly so you really have to focus on the daily and weekly PPO trend data to cancel out all the noise. For Day Traders the 5 minute bar TRIN Indicator with VIX overlay can be an important indicator.
TED Spread Market Indicator
The TED spread is an indicator used for determining credit risk. The number represents the difference between US Treasury (3 month) contract price and Eurodollar (3 month) contract price with the same expiration dates. If you take a look at the TED Spread chart you can see the correlation to stock market prices.
Money Flow Stock Indicator (MFI)
The Money Flow indicator attempts to calculate the amount of money buying versus selling a stock at the end of each period (data frequency setting). Stock Chart for Intel with MFI indicator turned on. More information on understanding the Money Flow Indicator.
Price Movement with Increased Volume
This can sometimes be overlooked but anytime you have a price change and the volume is breaking out this can be a strong indicator of future price direction.
50/200 DMA Crossover
When the 50 Day Moving Average Crosses the 200 Day Moving Average this can be a sign of future continued weakness or strength depending on if the 50 DMA is going above or below the 200 DMA. Some traders will actually reduce the moving averages to 5 and 20 to get an early indication of market direction. If this terminology sounds confusing then here is a better description of 50/200 DMA Crossover. Here is a S&P 500 chart with the 5/20 Simple DMA turned on.
Free Real-time Market Indicators
Get free real-time stock quote charts on the most important US Indexes and other stocks that trade on the NYSE or Nasdaq markets.
Point & Figure Charts
Point and Figure Charts are more old school but are very good indicators when trying to quickly find support and resistance levels. P&F Charts are used by many who like to buy on breakouts or sell when falling through support levels. View a P&F Graph for the Dow Jones Industrial Averages
Moving Average Convergence / Divergence (MACD)
The MACD is a technical indicator which takes the difference in two exponential moving averages. The most commonly used settings are the delta 12 and 26 period EMA line and the 9 period EMA signal. When the 12/26 EMA line is above the 9 EMA line this is usually a bullish sign and the price of the stock is increasing. When the 9 EMA line is above the 12/26 the opposite occurs and this is a bearish indicator. Dow Chart with MACD.
Percentage Price Oscillator (PPO)
The Percentage Price Oscillator momentum indicator can signal when a stock is oversold or overbought. The Full Description including formulas of PPO Indicator can be found at the above link. If you look at the top of the chart you can see the PPO indicator and how it tracks with the stock movement, Chart with PPO Indicator.
Trading Success - The Swing Traders Guide
Stock Market Swing Trader Indicators
If you are struggling to become a Successful Stock Trader or your Buy and Hold Strategy has produced nothing then you should look into The Swing Traders Guide. You get 9 free eBooks (two on market indicators) along with the Swing Trader 5.0 Program Course all for only $97. There is a full 60 day money back guarantee for those who may be skeptic. How much have you lost trying to learn on your own?
Latest News for Stock Market Indicators Other Stock Market Indicators Sites
http://www.stockmarket-indicators.com/
When trying to determine if you should buy, sell, or hold a stock you will often look for indicators as to what the market is going to do next. Unfortunately the best stock market indicators are subject to opinion, even the greatest don't seem to agree on which indicator is the best for determining future market direction.
The best thing to do is learn all the popular indicators and use them when trying to make a stock entry or exit point decision. This is of great importance to an Individual Investor who has to make important stock decisions based on all the data they can get their hands on. Don't leave without checking out the commodities section, also have a crude oil dashboard, excellent for crude traders.
This website was created to be a central location for several important indicators, this site can be used to quickly check the status of the US and World Economies. More indicators are periodically added, so you may want to link or bookmark for future reference. There is nothing worse then going long when the market has peeked and starting to go down, if you keep a close monitor on these indicators maybe it won't happen to you. Good luck with all your future trades!
Best Economic Stock Buy/Sell Indicators
Click Here For The Wall Street Journal
Economic Market Indicators are more important to the Trader who is making buy/sell transactions on a longer period of time. If you are holding stocks for several weeks or months then the economic indicators are of great importance.
Rail Traffic Car Loadings
This indicator monitors the amount of goods transported via rail. There are graphs for weekly loading data, year to year comparisons, and rolling averages. The Wall Street Journal said the railfax reports are one of the timeliest gauges of economic activity. More information on understanding the Railfax Economic Indicator. There could be some benefit or early market indication by tracking the actual stock price of the largest railroad companies like Union Pacific Corporation (UNP).
Baltic Exchange Dry Index
This indicator monitors worldwide shipping prices for dry bulk cargo. This is a very good leading indicator due to the goods transported being the materials used to produce goods. Companies don't order materials unless they know there is a future demand for their products. More information on understanding the Baltic Dry Index Market Indicator.
ATA Truck Tonnage Index
The American Trucking Association collects tonnage data being transported each month from all the major carriers. More information on understanding the Truck Tonnage Index Market Indicator. You will have to search for the Tonnage Data on the internet due to a membership being required to view data on the ATA site, the tonnage data graph can be found periodically at Calculated Risk Blog.
Calculated Risk Data via FeedBurner
Feedburner provides the latest data provided by Calculated Risk, when new popular economic data is released it usually shows up quickly on feedburner. More information on what is Calculated Risk Blog. A few of the market indicators found there are NAHB Builder Confidence data graph, Industrial Production, Capacity Utilization, Consumer Sentiment, Retail Sales, and Trade Deficit.
Equity Fund Inflows & Outflows
The Fund Inflow/Outflow data is a very good market indicator for determining if money is flowing into the market or being pulled out of the market. When money inflow is increasing this is a bullish sign. The data at the link above is only for the most current reports, the website requires a username/password for full access. For more information see our sample Weekly Equity/Bond Inflow/Outflow Chart.
Online Daily Price Index Indicator
This Inflation Index tracks very closely with the CPI but the data is updated daily, this can be used as an early market indicator. MIT currently monitors daily price fluctuations of ~5 million items sold by ~300 online retailers in more than 70 countries. Once you arrive at the website you will need to select the country to load DPI data. *Currently only displaying the world inflation index. The Billion Prices Project @ MIT.
Bureau of Labor Statistics
The Bureau of Labor Statistics is a government site that holds all the data for the most important economic indicators; Inflation & Prices, Employment, Unemployment, Pay & Benefits, Spending & Time Use and Productivity. This site will display graphs for specific economic data or you can actually pull the raw data for your own use. Use the top picks button, retrieve data, then check box add graph.
Federal Reserve System Statistics Data
Federal Reserve Data for download on Bank Assets and Liabilities, Business Finance, Exchange Rates, Flow of Funds, House Hold Finance, Industrial Activity, Interest Rates, and Money Stock and Reserve Balances. This data from the Federal Reserve is economic indicator gold! Interesting find on this data - Aggregate Reserves of Depository Institutions and the Monetary Base - H.3 - Starting in Aug 2008 the Bank reserves has increased and maintained an extremely high level with respect to the previous 50 years worth of data.
US Unemployment Rate
The US Unemployment Rate is a very popular market indicator, this site gives some very nice graphs including min, mean, and max for any user determined time line. Unemployment Data graph from the United States Department of Labor.
Gross Domestic Product (GDP)
The Gross Domestic Product is the measure of value on all goods and services produced domestically by a country. The GDP is one of the main market indicators for determining how well a country is doing as a whole. The GDP correlates very well with the standard of living.
Economic Events Release Calendar
Get the latest and past economic indicator release data for help in determining the market direction. Future economic release events can also be viewed. Economic indicators are listed for all major countries. You can also click on the event and options will come up for data graphs or previous raw data.
Market Monitoring Trader Tools
Latest Breaking Market News (MarketWatch)
Stay ahead of the stock trading game with the latest news that can take markets up or down quickly. MarketWatch also has a nice chart app that shows the Dow, S&P, Nasdaq, Global Dow, Gold, and Oil all within the same window. There are tabs for Europe, Asia, and Currency chart data. You should always compare multiple news outlets to filter out any network bias, here are a few other market news websites to monitor: CNBC Market News, Bloomberg Market News, CNN Breaking News.
US Market After Hours Quotes (CNN)
After Hours quotes for the Dow, S&P, and the Nasdaq futures market. Get a look at what the market is doing before the actual NYSE trading day begins or after it has ended. CNN list after hours future graphs for the major 3 US indexes. Here is a second source for After Hours Futures Data from CNBC, CNBC usually has the more current data, not real-time but close.
Insider Stock Trading Market Indicator
Insider buying can be viewed as a positive sign for the stock or market while insider selling can be negative or bearish. View the Daily Real-time Insider Trading Reports for buying and selling. The top page will show a pie chart for the current day of buys versus sells and company position.
World Stock Markets
Tracking all the major world indexes can give you an indication of where the us market could be headed. The link above shows major indexes for North/South America, Europe, and ASIA. When another country starts having economic issues it can start spreading to other nations and this should be monitored.
World Currency Market Indicators
World currencies can be used or monitored for many different economic signals. When the US dollar drops against other currencies this can be beneficial to large US companies which earn money through exports. For determining how the US dollar is trending use the Real-time - US Dollar Index Spot. There also is an ETF that tracks the US Dollar, UUP - US Dollar Index (Bullish).
Forex EURO Dollar Real-time Dashboard
The Forex market is the trading of world currencies, a few of the most popular trades to put on is the EUR/USD, USD/JPY, AUD/USD, USD/CAD, EUR/CHF, EUR/JPY, and EUR/GBP. The more popular (liquid) the currency pair the lower the pip spread, this allows you to make profit quicker. Forex allows for high margins (high risk), typical is 50:1 for US accounts.
EUR/USD Advanced Forex Chart
If you are looking for some free real-time advanced charts then Forex Pros has some great tools, they also allow you to view their members sentiment from Bearish to Bullish percentage. Advanced charts are available for most all currencies.
Popular Commodities for Monitoring Markets
[Most Recent Quotes from www.kitco.com]
[Most Recent Quotes from www.kitco.com]
Click to enlarge
Copper Metal Price
Copper is used in the manufacturing of all types of consumer goods, so the price of Copper can be a good indicator for determining the amount of products being purchased. Multiple charts can be found at this site from 24 hour all the way to 5 year graph of price levels.
Silver Metal Price
Silver is used in the manufacturing of all types of consumer goods, so the price of Silver can be a good indicator for determining the amount of products being purchased. Press Ctrl and Click Refresh for Chart Updates on the right.
If you trade Silver on Forex or US markets using ETFs check out our Real-time Spot Silver Dashboard. We also have a Real-time Spot Gold Dashboard.
Crude Oil Price Monitoring Dashboard
Crude Oil Dashboard
Crude Oil prices can be a stock market and economic indicator due to the impact on consumer spending as prices fluctuate up and down. Click here for Real-time Crude Oil Dashboard, multiple time increment crude oil charts. ETFs can be a good trading vehicle for commodities. Monitor Crude Oil using Weekly Crude Oil Prices/Stocks/Production/Imports Data.
Natural Gas Weekly Price Chart
The price of Natural Gas can indicate that manufacturing is increasing or decreasing due to the use of this energy source, more demand brings higher prices. Learn more about what affects Natural Gas Price and get the latest NG Underground Storage Data. This indicator has lost a little of its luster due to the new fracking process which has led to an oversupply.
Best Technical Stock Buy/Sell Indicators
Technical Market Indicators are more important to the day trader who will be making buy/sell transactions on a short period of time. If you make stock trades throughout a single day in minutes or hours then the technical indicators should be observed constantly.
S&P 500 Percent of Stocks Above 50 DMA
This Stock Market Indicator gives the total percent of stocks inside the S&P500 index which are trading above their 50 day moving average. This is a quick way to see a large scope of 500 companies stock price direction or momentum. When this indicator starts rising it shows the stock market in general is turning bullish.
NYSE Summation Index (EOD Update)
This Stock Market Indicator gives a cumulative sum of all daily McClellan oscillator readings for the NYSE advance/decline issues. The daily McClellan Oscillator is a momentum indicator that is applied to the exchange advance/decline stats.
NYSE Bullish Percent Index (EOD Update)
This Stock Market Indicator takes the total number of NYSE stocks with a positive Point and Figure buy signal and divides by the total number of stocks in the NYSE. A P&F stock buy signal is a column of X's going higher than the previous column of X's.
Basic S&P 500 Daily View Chart
The Basic Chart of a Major index like the S&P 500 with 50 and 200 day moving average lines is a commonly used indicator to quickly determine where the market currently stands.
S&P 500 P/E Ratio Chart
The S&P 500 P/E Ratio is the average P/E of all stocks which make up the index. The S&P 500 P/E Ratio is a very good market timing indicator.
Volatility Index (VIX) Market Fear Indicator
The VIX is used for determining the volatility of the current market. The higher the number the more volatile or greater the price movement swings will occur and usually coincides with bear market conditions. When the VIX is 20 or below this is usually a time of more stable prices and is a bullish indicator.
CBOE Put/Call Option Ratio
The Chicago Board Options Exchange monitors the amount of put contracts and call contracts that are purchased. They turn this into a ratio and this is then called the Put/Call Ratio. When this ratio is below 1 it signals bullish market conditions due to more people buying call options. When the number rises above 1 the opposite holds true, more people are buying put options.
CBOE Option Total Put/Call Ratio Graph
This Stock Market Indicator charts the daily CBOE Put/Call Ratio with simple moving averages to help eliminate the noise or sporadic data points. The chart link is set with daily points invisible, the line data is set on 2 Day SMA, 20SMA, & 40SMA.
Market Breadth Indicators
The Breadth Indicators are for graphing the new highs versus new lows and Advancing versus declining issues for the major exchanges. The breadth charts are for the New York Stock Exchange, the Nasdaq, and the AMEX.
Arms Index (TRIN Definition)
The TRIN is a short term indicator derived from taking the Advance/Decline Issues and dividing by the Advance/Decline Volume. Here is a graph of the New York Stock Exchange TRIN. The TRIN number swings wildly so you really have to focus on the daily and weekly PPO trend data to cancel out all the noise. For Day Traders the 5 minute bar TRIN Indicator with VIX overlay can be an important indicator.
TED Spread Market Indicator
The TED spread is an indicator used for determining credit risk. The number represents the difference between US Treasury (3 month) contract price and Eurodollar (3 month) contract price with the same expiration dates. If you take a look at the TED Spread chart you can see the correlation to stock market prices.
Money Flow Stock Indicator (MFI)
The Money Flow indicator attempts to calculate the amount of money buying versus selling a stock at the end of each period (data frequency setting). Stock Chart for Intel with MFI indicator turned on. More information on understanding the Money Flow Indicator.
Price Movement with Increased Volume
This can sometimes be overlooked but anytime you have a price change and the volume is breaking out this can be a strong indicator of future price direction.
50/200 DMA Crossover
When the 50 Day Moving Average Crosses the 200 Day Moving Average this can be a sign of future continued weakness or strength depending on if the 50 DMA is going above or below the 200 DMA. Some traders will actually reduce the moving averages to 5 and 20 to get an early indication of market direction. If this terminology sounds confusing then here is a better description of 50/200 DMA Crossover. Here is a S&P 500 chart with the 5/20 Simple DMA turned on.
Free Real-time Market Indicators
Get free real-time stock quote charts on the most important US Indexes and other stocks that trade on the NYSE or Nasdaq markets.
Point & Figure Charts
Point and Figure Charts are more old school but are very good indicators when trying to quickly find support and resistance levels. P&F Charts are used by many who like to buy on breakouts or sell when falling through support levels. View a P&F Graph for the Dow Jones Industrial Averages
Moving Average Convergence / Divergence (MACD)
The MACD is a technical indicator which takes the difference in two exponential moving averages. The most commonly used settings are the delta 12 and 26 period EMA line and the 9 period EMA signal. When the 12/26 EMA line is above the 9 EMA line this is usually a bullish sign and the price of the stock is increasing. When the 9 EMA line is above the 12/26 the opposite occurs and this is a bearish indicator. Dow Chart with MACD.
Percentage Price Oscillator (PPO)
The Percentage Price Oscillator momentum indicator can signal when a stock is oversold or overbought. The Full Description including formulas of PPO Indicator can be found at the above link. If you look at the top of the chart you can see the PPO indicator and how it tracks with the stock movement, Chart with PPO Indicator.
Trading Success - The Swing Traders Guide
Stock Market Swing Trader Indicators
If you are struggling to become a Successful Stock Trader or your Buy and Hold Strategy has produced nothing then you should look into The Swing Traders Guide. You get 9 free eBooks (two on market indicators) along with the Swing Trader 5.0 Program Course all for only $97. There is a full 60 day money back guarantee for those who may be skeptic. How much have you lost trying to learn on your own?
Latest News for Stock Market Indicators Other Stock Market Indicators Sites
http://www.stockmarket-indicators.com/
How Do I Determine My Stock Sell Points?
How Do I Determine My Stock Sell Points?
By Chris Perruna
This is an excellent question, if fact, it's the toughest question that I face with every stock that I own.
If I own a stock and it immediately goes down, this is the easiest decision I must make - SELL and sell fast. I know how to cut my losses and have been doing it for years. Yes, it's a blow to my self esteem but I always feel better when I see that particular stock several dollars lower a few weeks later. This is when I feel good about the insurance policy I have (sell rules) to protect my capital.
Take Accuride (ACW) for example: I recently purchased the stock on a "three weeks tight pattern", a pattern that is familiar with O'Neil and CANSLIM. I placed a market order as the stock started to move towards the breakout level of $15.00 and was filled at $14.99.
For a lower priced stock such as ACW, I give it about 8% breathing room which brings my sell point to $13.79. I will not place a physical sell stop because I don't want to be taken out of the position on false market maker moves. I reevaluate my position every night and decide if I need to sell "at the market" the next morning if it is below $13.79 or nearing the sell point that I established. Last week, the stock fell to $14.11 intraday giving most investors a scare but managed to close up at $15.18. This is the exact reason why I keep mental stops instead of physical stops. I only place physical stops when I will be away from a computer for an extended period of time or if my gains are sufficient and I want to protect them at a specific number, then I don't care if the stop is triggered intraday.
I will not change my mental sell stop of $13.79 until ACW gains at least 20% from my buy point. If that time arrives, I will move my sell stop about 12% below the current levels. In this case, the numbers would read like this: ACW would be up 20% near $18 and my trailing mental stop would be $15.84. If the stock approaches this area or violates the number, I will sell "at the market" the following morning. Remember, circumstances play a big role in each decision. If outside events are influencing the stock, I must take that into consideration and base my decision on the additional information.
If ACW starts to use a moving average as support, my mental sell stop will always be slightly below the moving average, again giving it room to breathe. If any of my stocks gain 50%, I start to place a physical stop about 10%-12% below the current levels to protect the gains.
Finally, if I have not been sold out of a stock but I start to see the stock act in different ways than it was while up-trending, I will sell immediately (examples can be a climax run, slicing a major moving average, breaking a strong trend-line or possibly a string of weaker earnings reports). Use discretion and develop a feel for what works best for you.
If Accuride (ACW) tanks today and I am forced to sell even though I only purchased the stock in the past week, I will not allow it to hurt my emotional balance and I will move on to the next opportunity because I know investing is about percentages and NOT about being right on every trade.
Below are some basic sell rules that I follow:
Sell all stocks that fall 7-10% below your purchase price. Don't ever allow a 10% loss double into a 20% loss because of stubbornness or the emotion of hope (hoping the stock will rebound). It is perfectly fine if the stock is sold out for a 7% loss and then it rebounds and you feel you would like to take another position in this stock.
If you feel something is wrong with your stock and the action looks odd but you are only down a few percent, sell anyway, why take a chance, especially in a bad market environment. This is the only form of insurance in the stock market.
When a stock has been is a solid up-trend and then it starts to move sideways, this is referred to as churning. This can be the first signal to the end of the run. This may serve as the perfect time to lock in your profits and watch from the sideline, remember, you can always get back in.
Learn to sell into strength; you can never go wrong by selling into strength before the stock peaks. No one and I mean NO ONE gets out at the top and if they do, they were lucky. No one and I mean NO ONE goes broke by taking a profit after an extended run or up-trend! Don't allow the emotion of GREED to steer your ship, take profits when necessary, don't get greedy.
Stop Loss, Trailing Stops and Market Makers:
Many investors try to lock in gains or prevent losses with a predetermined stop loss or trailing stop loss. This is an excellent tool but has become an easy target for market makers and program traders to manipulate.
For example: You buy XYZ stock at $50 and enter an automatic stop loss at $45 to protect your portfolio from extensive losses.
Market makers can see this entered stop loss and play the market in order to wipe out your shares and pick them up at cheaper prices. They can bid down the price to $44.50 or so and grab your shares and then bid up the price back to the $50 range - all in one day. I have personally seen intraday manipulation of stocks being bid down, only to close for minor losses or slight gains. Accuride is a great example from last Thursday as it was down over 6% intraday and then closed up over 1%.
A trailing stop is a feature that allows the investor to determine a % point at which their stock is sold.
Example: If you buy 100 shares of a stock at $50, you can select a percentage at which your stock is sold, this percentage follows the stock up in price. So if you bought 100 shares of XYZ at $50 and put your percentage at 8%, your stock will be sold at $46...BUT, if your stock advances to $60, then you will have a new sell point at $55.20 (8% below the high of $60). In other words, your sell stop trails or follows your stock without you having to cancel out and resetting a new sell stop each time your stock goes up in price.
How do you protect your portfolio without letting market makers trip your stop loss for a premature exit?
I use a predetermined mental stop loss that is only implemented after the market is closed for the day. I take a look at each holding and determine if it should be sold at the market or intraday the next trading day. I predetermined my sell level when I bought the stock, so most emotions are already taken out of the equation.
If you invest in quality stocks with solid fundamentals and technicals, there is no need to constantly worry about huge losses in the matter of one or two days, barring a tragic event within that particular company.
Finally, Post Trade Analysis:
Post trade analysis could possibly be the most important key to unlocking your investment potential. Every investor must analyze their past trades. By analyzing your past trades, you can focus in on your mistakes and pinpoint the downfalls in your methods.
Ask yourself:
How many stocks have you bought in the past 12 months?
How many went up?
How many went down?
How long did you hold these stocks?
Why did the stock work?
Where did it go wrong?
Did the fundamentals breakdown?
Did the stock send key technical red flags before a major collapse?
Most investors skip post analysis and consider it a waste of time to look at the past. Many investors are scared to look at past trades; they don't want to see the extent of the damage. An investor will never be able to take a step forward without looking over the past success and failures in their portfolio. In order to focus on weak areas in your investing methods, post analysis is the place to start. Post analysis with the aid of charts will show you if you bought too soon, sold too late, sold too early or bought the wrong stock all together. Print out a chart of all stocks that you sold and plot your key entry and exit points. Look for base building, accumulation, distribution or any other components that help shape your final decisions. Compare your stocks to sister stocks and see if similar patterns occurred. Did any sister stocks start to rise or fall before your stock? Post analysis is like looking in the mirror; you have no where to hide and only the truth to seek.
After several post analysis sessions, you will notice similarities in your buying and selling patterns. Similar mistakes or successes will become apparent. Focus on both the good and the bad. This post analysis allows the educated investor to suck in their pride and take responsibility for their own actions.
This is the starting point to correcting mistakes and growing your strengths!
Chris Perruna - http://www.marketstockwatch.com
Chris is the founder and president of MarketStockWatch.com, an internet community that teaches you how to invest your money with solid rules. We offer an extended no obligation monthly trial period starting immediately with two free weeks. We don't stop at just showing you our daily and weekly screens, we teach you how to make you own screens through education. Through our philosophy, you will be able to create your own methods and styles to become successful.
Article Source: http://EzineArticles.com/?expert=Chris_Perruna
http://ezinearticles.com/?How-Do-I-Determine-My-Stock-Sell-Points?&id=73308
By Chris Perruna
This is an excellent question, if fact, it's the toughest question that I face with every stock that I own.
If I own a stock and it immediately goes down, this is the easiest decision I must make - SELL and sell fast. I know how to cut my losses and have been doing it for years. Yes, it's a blow to my self esteem but I always feel better when I see that particular stock several dollars lower a few weeks later. This is when I feel good about the insurance policy I have (sell rules) to protect my capital.
Take Accuride (ACW) for example: I recently purchased the stock on a "three weeks tight pattern", a pattern that is familiar with O'Neil and CANSLIM. I placed a market order as the stock started to move towards the breakout level of $15.00 and was filled at $14.99.
For a lower priced stock such as ACW, I give it about 8% breathing room which brings my sell point to $13.79. I will not place a physical sell stop because I don't want to be taken out of the position on false market maker moves. I reevaluate my position every night and decide if I need to sell "at the market" the next morning if it is below $13.79 or nearing the sell point that I established. Last week, the stock fell to $14.11 intraday giving most investors a scare but managed to close up at $15.18. This is the exact reason why I keep mental stops instead of physical stops. I only place physical stops when I will be away from a computer for an extended period of time or if my gains are sufficient and I want to protect them at a specific number, then I don't care if the stop is triggered intraday.
I will not change my mental sell stop of $13.79 until ACW gains at least 20% from my buy point. If that time arrives, I will move my sell stop about 12% below the current levels. In this case, the numbers would read like this: ACW would be up 20% near $18 and my trailing mental stop would be $15.84. If the stock approaches this area or violates the number, I will sell "at the market" the following morning. Remember, circumstances play a big role in each decision. If outside events are influencing the stock, I must take that into consideration and base my decision on the additional information.
If ACW starts to use a moving average as support, my mental sell stop will always be slightly below the moving average, again giving it room to breathe. If any of my stocks gain 50%, I start to place a physical stop about 10%-12% below the current levels to protect the gains.
Finally, if I have not been sold out of a stock but I start to see the stock act in different ways than it was while up-trending, I will sell immediately (examples can be a climax run, slicing a major moving average, breaking a strong trend-line or possibly a string of weaker earnings reports). Use discretion and develop a feel for what works best for you.
If Accuride (ACW) tanks today and I am forced to sell even though I only purchased the stock in the past week, I will not allow it to hurt my emotional balance and I will move on to the next opportunity because I know investing is about percentages and NOT about being right on every trade.
Below are some basic sell rules that I follow:
Sell all stocks that fall 7-10% below your purchase price. Don't ever allow a 10% loss double into a 20% loss because of stubbornness or the emotion of hope (hoping the stock will rebound). It is perfectly fine if the stock is sold out for a 7% loss and then it rebounds and you feel you would like to take another position in this stock.
If you feel something is wrong with your stock and the action looks odd but you are only down a few percent, sell anyway, why take a chance, especially in a bad market environment. This is the only form of insurance in the stock market.
When a stock has been is a solid up-trend and then it starts to move sideways, this is referred to as churning. This can be the first signal to the end of the run. This may serve as the perfect time to lock in your profits and watch from the sideline, remember, you can always get back in.
Learn to sell into strength; you can never go wrong by selling into strength before the stock peaks. No one and I mean NO ONE gets out at the top and if they do, they were lucky. No one and I mean NO ONE goes broke by taking a profit after an extended run or up-trend! Don't allow the emotion of GREED to steer your ship, take profits when necessary, don't get greedy.
Stop Loss, Trailing Stops and Market Makers:
Many investors try to lock in gains or prevent losses with a predetermined stop loss or trailing stop loss. This is an excellent tool but has become an easy target for market makers and program traders to manipulate.
For example: You buy XYZ stock at $50 and enter an automatic stop loss at $45 to protect your portfolio from extensive losses.
Market makers can see this entered stop loss and play the market in order to wipe out your shares and pick them up at cheaper prices. They can bid down the price to $44.50 or so and grab your shares and then bid up the price back to the $50 range - all in one day. I have personally seen intraday manipulation of stocks being bid down, only to close for minor losses or slight gains. Accuride is a great example from last Thursday as it was down over 6% intraday and then closed up over 1%.
A trailing stop is a feature that allows the investor to determine a % point at which their stock is sold.
Example: If you buy 100 shares of a stock at $50, you can select a percentage at which your stock is sold, this percentage follows the stock up in price. So if you bought 100 shares of XYZ at $50 and put your percentage at 8%, your stock will be sold at $46...BUT, if your stock advances to $60, then you will have a new sell point at $55.20 (8% below the high of $60). In other words, your sell stop trails or follows your stock without you having to cancel out and resetting a new sell stop each time your stock goes up in price.
How do you protect your portfolio without letting market makers trip your stop loss for a premature exit?
I use a predetermined mental stop loss that is only implemented after the market is closed for the day. I take a look at each holding and determine if it should be sold at the market or intraday the next trading day. I predetermined my sell level when I bought the stock, so most emotions are already taken out of the equation.
If you invest in quality stocks with solid fundamentals and technicals, there is no need to constantly worry about huge losses in the matter of one or two days, barring a tragic event within that particular company.
Finally, Post Trade Analysis:
Post trade analysis could possibly be the most important key to unlocking your investment potential. Every investor must analyze their past trades. By analyzing your past trades, you can focus in on your mistakes and pinpoint the downfalls in your methods.
Ask yourself:
How many stocks have you bought in the past 12 months?
How many went up?
How many went down?
How long did you hold these stocks?
Why did the stock work?
Where did it go wrong?
Did the fundamentals breakdown?
Did the stock send key technical red flags before a major collapse?
Most investors skip post analysis and consider it a waste of time to look at the past. Many investors are scared to look at past trades; they don't want to see the extent of the damage. An investor will never be able to take a step forward without looking over the past success and failures in their portfolio. In order to focus on weak areas in your investing methods, post analysis is the place to start. Post analysis with the aid of charts will show you if you bought too soon, sold too late, sold too early or bought the wrong stock all together. Print out a chart of all stocks that you sold and plot your key entry and exit points. Look for base building, accumulation, distribution or any other components that help shape your final decisions. Compare your stocks to sister stocks and see if similar patterns occurred. Did any sister stocks start to rise or fall before your stock? Post analysis is like looking in the mirror; you have no where to hide and only the truth to seek.
After several post analysis sessions, you will notice similarities in your buying and selling patterns. Similar mistakes or successes will become apparent. Focus on both the good and the bad. This post analysis allows the educated investor to suck in their pride and take responsibility for their own actions.
This is the starting point to correcting mistakes and growing your strengths!
Chris Perruna - http://www.marketstockwatch.com
Chris is the founder and president of MarketStockWatch.com, an internet community that teaches you how to invest your money with solid rules. We offer an extended no obligation monthly trial period starting immediately with two free weeks. We don't stop at just showing you our daily and weekly screens, we teach you how to make you own screens through education. Through our philosophy, you will be able to create your own methods and styles to become successful.
Article Source: http://EzineArticles.com/?expert=Chris_Perruna
http://ezinearticles.com/?How-Do-I-Determine-My-Stock-Sell-Points?&id=73308
30 June 2011
27 June 2011
19 May 2011
Volatility channels
Volatility channels (or bands) move with the stock, quickly adjusting to
price movements. When a security trends outside the volatility channel, it
adds strength to a high probability long trade . Look out for a stock to
“trend” outside these bands to catch the momentum. When the swing
increases, the bands respond by opening up. The Lower channel normally
points to a key fibonacci support zone.
Right Click select Param “parameters” and select variable you need.
// Enable radio button "middle" for grid lines.
MaxGraph = 4;
Vc= Param("Volatility channel -",10,2,14);
Up=HHV(((((H+L+C)/3)*2)- H),Vc);
Lo=LLV(((((H+L+C)/3)*2)- L),Vc);
Graph0=C;
Graph0Style=128+4;
Graph0BarColor = IIf( Close > Ref( Close, -1 ), colorDarkGreen, colorDarkRed );
Graph0Style = styleBar;
Graph0 = Close;
Graph1=Up;
Graph1Style=styleLine;
Graph1Color=colorBlue;
Graph2=Lo;
Graph2Style=styleLine;
Graph2Color=colorBlue;
Title=Name() + " Volatiltiy Channels - LC" + WriteVal( Graph2 )+ ", UC" + WriteVal( Graph1 )+
", Close" + WriteVal( Graph0 );
price movements. When a security trends outside the volatility channel, it
adds strength to a high probability long trade . Look out for a stock to
“trend” outside these bands to catch the momentum. When the swing
increases, the bands respond by opening up. The Lower channel normally
points to a key fibonacci support zone.
Right Click select Param “parameters” and select variable you need.
// Enable radio button "middle" for grid lines.
MaxGraph = 4;
Vc= Param("Volatility channel -",10,2,14);
Up=HHV(((((H+L+C)/3)*2)- H),Vc);
Lo=LLV(((((H+L+C)/3)*2)- L),Vc);
Graph0=C;
Graph0Style=128+4;
Graph0BarColor = IIf( Close > Ref( Close, -1 ), colorDarkGreen, colorDarkRed );
Graph0Style = styleBar;
Graph0 = Close;
Graph1=Up;
Graph1Style=styleLine;
Graph1Color=colorBlue;
Graph2=Lo;
Graph2Style=styleLine;
Graph2Color=colorBlue;
Title=Name() + " Volatiltiy Channels - LC" + WriteVal( Graph2 )+ ", UC" + WriteVal( Graph1 )+
", Close" + WriteVal( Graph0 );
05 May 2011
better Volume indicator for Amibroker afl code
Hi friends,
Hi afl coding experts
please make anb afl for amibroker from using trade station code given below
please get a improved indicator for our stocks
Most Traders Ignore Volume – Big Mistake!
Bottom
Start Up Trend
Up Trend Continue
Top
Start Down Trend
Down Trend Continue
Indicator Color
Volume Climax Up Yes Yes Yes Red
Volume Climax Down Yes Yes Yes White
High Volume Churn Yes Yes Green/Blue
Hi Vol Churn + Climax Yes Yes Magenta
Low Volume Yes Yes Yes Yes Yellow
Better Volume Indicator: Summary
Volume has to be the most underrated market variable used in technical analysis. But if you know how to analyze and interpret it, you'll be able to see market turning points develop and anticipate pullbacks and trend changes.
You can figure out whether the Professionals are buying or selling by analyzing:
Volume transacted at the bid or the ask
High to low range of the bar, and
Average trade size.
The Better Volume indicator improves on your typical volume histogram by coloring the bars based on 5 criteria:
Volume Climax Up – high volume, high range, up bars (red)
Volume Climax Down – high volume, high range, down bars (white)
High Volume Churn – high volume, low range bars (green, PaintBar blue)
Volume Climax plus High Volume Churn – both the above conditions (magenta)
Low Volume – low volume bars (yellow)
When there are no volume signals the default histogram bar coloring is cyan
The Better Volume indicator also comes in a PaintBar version, so you can see the coloring on the price bars themselves. The table above is a quick reference guide that shows what volume indicator signals to watch for at different stages of the market.
Remember, this method of identifying market turning points using volume is even more powerful when combined with other non-correlated indicators. In my trading I use the Hilbert Sine Wave to identify cyclical turning points and take the trade when confirmed with the Better Volume indicator signals.
Better Volume Indicator: Volume Climax Up
Better Volume Indicator: Volume Climax Up (Emini 5 min)
Volume Climax Up bars are identified by multiplying buying volume (transacted at the ask) with range and then looking for the highest value in the last 20 bars (default setting). Volume Climax Up bars indicate large volume demand that results in bidding up prices. The default setting is to color the bars red.
Volume Climax Up bars are typically seen at:
The start of up trends
The end of up trends, and
Pullbacks during down trends.
The beginning of an up trend is almost always marked by a Volume Climax Up bar. This shows that the buyers are anxious to get on board and large volume enters the market and bids up prices quickly. A valid breakout should be followed by more buying but occasionally the low of the Volume Climax Up bar is tested.
Market tops are also characterized by Volume Climax Up bars often with High Volume Churn and/or Low Volume test patterns. Changes in trend usually take a while to develop, so don't be suckered in too soon – wait for the market to become exhausted. A useful signal to watch for is the Low Volume bar – this shows that finally there is no demand and the market is likely to stop advancing.
During a down trend, pullbacks are often characterized by Volume Climax Up bars. These show short covering or traders calling a bottom too quickly. As soon as this Climax volume declines the down trend is likely to resume. Continuation of the down trend is confirmed when the low of the Volume Climax Up bar is taken out.
Better Volume Indicator: Volume Climax Down
Better Volume Indicator: Volume Climax Down (Emini 5 min)
Volume Climax Down bars are essentially the inverse of Volume Climax Up bars.
Volume Climax Down bars are identified by multiplying selling volume (transacted at the bid) with range and then looking for the highest value in the last 20 bars (default setting). Volume Climax Down bars indicate large volume supply that results in pushing down prices. The default setting is to color the bars white.
Volume Climax Down bars are typically seen at:
The start of down trends
The end of down trends, and
Pullbacks during up trends.
The beginning of a down trend is almost always marked by a Volume Climax Down bar. This shows that the sellers are anxious to get on board and large volume enters the market and pushes down prices quickly. A valid breakdown should be followed by more selling but occasionally the high of the Volume Climax Down bar is tested.
Market bottoms are also characterized by Volume Climax Down bars often with High Volume Churn and/or Low Volume test patterns. Changes in trend usually take a while to develop, so don't be suckered in too soon – wait for the market to become exhausted. A useful signal to watch for is the Low Volume bar – this shows that finally there is no supply and the market is likely to stop declining.
During an up trend, pullbacks are often characterized by Volume Climax Down bars. These show profit taking or traders calling a top too quickly. As soon as this Climax volume declines the up trend is likely to resume. Continuation of the up trend is confirmed when the high of the Volume Climax Down bar is taken out.
Better Volume Indicator: High Volume Churn
Better Volume Indicator: High Volume Churn (Emini 5 min)
High Volume Churn bars are identified by dividing volume by the bar's high to low range and then looking for the highest value in the last 20 bars (default setting). High Volume Churn bars indicate profit taking, new supply entering the market at tops or new demand entering the market at bottoms. The default setting is to color the volume histogram bars green and the price PaintBars blue.
High Volume Churn bars are typically seen at:
The end of up trends
The end of down trends, and
Profit taking mid-trend.
When Volume Churn is high it indicates demand is being met by new supply at tops or supply is being met by new demand at bottoms – in effect, price is not able to advance as new supply or demand enters the market. Hence the bar's high to low range is low.
Maybe one of my customers (Neil F.) says it better than I can:
“I like to think of the High Volume Churn bars as 'brakes'. It's like hitting the brakes – usually, the car will stop shortly thereafter (1-2 points), and then turn around. At other times, however, the momentum is so great that all you get is a pause and then the market just continues going in the same direction! Unfortunately, sometimes it is hard to tell which outcome will occur. Then you just need common sense.â€
Occasionally Volume Climax (up or down) and High Volume Churn bars coincide and these bars are colored magenta.
A word of caution with intra-day charts. High Volume Churn often appears on the last bars of the trading day. This does not necessarily represent a possible turning point, but is more likely just to be high volume from day traders closing out positions.
Better Volume Indicator: Low Volume
Better Volume Indicator: Low Volume (Emini 5 min)
Low Volume bars are identified by looking for the lowest volume in the last 20 bars (default setting). Low Volume bars indicate a lack of demand at tops or a lack of supply at bottoms. The default setting is to color the bars yellow.
Low Volume bars are typically seen at:
The end of up trends
The end of down trends, and
Pullbacks mid-trend.
Low Volume bars are my favourite volume indicator signal. They show what the amateurs are doing on tick charts. They are also very useful confirming indicators of a change in trend direction when the market is testing a top or bottom.
Better Volume Indicator: TradeStation EasyLanguage Code
Inputs: LowVol(True), ClimaxUp(True), ClimaxDown(True), Churn(True) …
Variables: BarColor(Cyan);
BarColor = Color;
If BarType > 1 or UseUpTicks = False then begin
If C > O and Range 0 then Value1 = (Range/
(2*Range+O-C))*UpTicks;
If C < O and Range 0 then Value1 = ((Range+C-O)/ (2*Range+C-O))*UpTicks; If C = O then Value1 = 0.5*UpTicks; Value2 = UpTicks-Value1; End; If BarType Share here's the code. SetChartBkColor( ParamColor("BK COLOR",colorBlack)); Color=(colorGrey50); //=(colorAqua)== BarColor(Cyan) LowColor=(colorYellow); ClimaxColor=(colorRed); ChurnColor=(colorGreen); ClimaxChurnColor=(colorCustom12); LowChurnColor=(colorWhite); //AvgColor(Red); //Variables: BarColor(Cyan); BarColor = Color; range=H-L; Value1 = V; Value2 = V*Range; Value3 = IIf(range < Ref(range, -1) OR range > Ref(range, -1), V, IIf(range == Ref(range, -1), V /Range , 0));
//if Range <> 0 then Value3 = V/Range;
Value4 = MA(Value1,30);
Color12=
IIf (Value1 == LLV(Value1,20), LowColor,
IIf (Value2 == HHV(Value2,20), ClimaxColor,
IIf (Value3 == HHV(Value3,20), ChurnColor,
IIf (Value2 == HHV(Value2,20) AND Value3 == HHV(Value3,20), ClimaxChurnColor,
IIf (Value3 == LLV(Value3,20) ,LowChurnColor,Color)))));
Plot(Value1,"Volume",Color12,2+4);
Plot(Value4,"Avg",colorYellow);
Hi afl coding experts
please make anb afl for amibroker from using trade station code given below
please get a improved indicator for our stocks
Most Traders Ignore Volume – Big Mistake!
Bottom
Start Up Trend
Up Trend Continue
Top
Start Down Trend
Down Trend Continue
Indicator Color
Volume Climax Up Yes Yes Yes Red
Volume Climax Down Yes Yes Yes White
High Volume Churn Yes Yes Green/Blue
Hi Vol Churn + Climax Yes Yes Magenta
Low Volume Yes Yes Yes Yes Yellow
Better Volume Indicator: Summary
Volume has to be the most underrated market variable used in technical analysis. But if you know how to analyze and interpret it, you'll be able to see market turning points develop and anticipate pullbacks and trend changes.
You can figure out whether the Professionals are buying or selling by analyzing:
Volume transacted at the bid or the ask
High to low range of the bar, and
Average trade size.
The Better Volume indicator improves on your typical volume histogram by coloring the bars based on 5 criteria:
Volume Climax Up – high volume, high range, up bars (red)
Volume Climax Down – high volume, high range, down bars (white)
High Volume Churn – high volume, low range bars (green, PaintBar blue)
Volume Climax plus High Volume Churn – both the above conditions (magenta)
Low Volume – low volume bars (yellow)
When there are no volume signals the default histogram bar coloring is cyan
The Better Volume indicator also comes in a PaintBar version, so you can see the coloring on the price bars themselves. The table above is a quick reference guide that shows what volume indicator signals to watch for at different stages of the market.
Remember, this method of identifying market turning points using volume is even more powerful when combined with other non-correlated indicators. In my trading I use the Hilbert Sine Wave to identify cyclical turning points and take the trade when confirmed with the Better Volume indicator signals.
Better Volume Indicator: Volume Climax Up
Better Volume Indicator: Volume Climax Up (Emini 5 min)
Volume Climax Up bars are identified by multiplying buying volume (transacted at the ask) with range and then looking for the highest value in the last 20 bars (default setting). Volume Climax Up bars indicate large volume demand that results in bidding up prices. The default setting is to color the bars red.
Volume Climax Up bars are typically seen at:
The start of up trends
The end of up trends, and
Pullbacks during down trends.
The beginning of an up trend is almost always marked by a Volume Climax Up bar. This shows that the buyers are anxious to get on board and large volume enters the market and bids up prices quickly. A valid breakout should be followed by more buying but occasionally the low of the Volume Climax Up bar is tested.
Market tops are also characterized by Volume Climax Up bars often with High Volume Churn and/or Low Volume test patterns. Changes in trend usually take a while to develop, so don't be suckered in too soon – wait for the market to become exhausted. A useful signal to watch for is the Low Volume bar – this shows that finally there is no demand and the market is likely to stop advancing.
During a down trend, pullbacks are often characterized by Volume Climax Up bars. These show short covering or traders calling a bottom too quickly. As soon as this Climax volume declines the down trend is likely to resume. Continuation of the down trend is confirmed when the low of the Volume Climax Up bar is taken out.
Better Volume Indicator: Volume Climax Down
Better Volume Indicator: Volume Climax Down (Emini 5 min)
Volume Climax Down bars are essentially the inverse of Volume Climax Up bars.
Volume Climax Down bars are identified by multiplying selling volume (transacted at the bid) with range and then looking for the highest value in the last 20 bars (default setting). Volume Climax Down bars indicate large volume supply that results in pushing down prices. The default setting is to color the bars white.
Volume Climax Down bars are typically seen at:
The start of down trends
The end of down trends, and
Pullbacks during up trends.
The beginning of a down trend is almost always marked by a Volume Climax Down bar. This shows that the sellers are anxious to get on board and large volume enters the market and pushes down prices quickly. A valid breakdown should be followed by more selling but occasionally the high of the Volume Climax Down bar is tested.
Market bottoms are also characterized by Volume Climax Down bars often with High Volume Churn and/or Low Volume test patterns. Changes in trend usually take a while to develop, so don't be suckered in too soon – wait for the market to become exhausted. A useful signal to watch for is the Low Volume bar – this shows that finally there is no supply and the market is likely to stop declining.
During an up trend, pullbacks are often characterized by Volume Climax Down bars. These show profit taking or traders calling a top too quickly. As soon as this Climax volume declines the up trend is likely to resume. Continuation of the up trend is confirmed when the high of the Volume Climax Down bar is taken out.
Better Volume Indicator: High Volume Churn
Better Volume Indicator: High Volume Churn (Emini 5 min)
High Volume Churn bars are identified by dividing volume by the bar's high to low range and then looking for the highest value in the last 20 bars (default setting). High Volume Churn bars indicate profit taking, new supply entering the market at tops or new demand entering the market at bottoms. The default setting is to color the volume histogram bars green and the price PaintBars blue.
High Volume Churn bars are typically seen at:
The end of up trends
The end of down trends, and
Profit taking mid-trend.
When Volume Churn is high it indicates demand is being met by new supply at tops or supply is being met by new demand at bottoms – in effect, price is not able to advance as new supply or demand enters the market. Hence the bar's high to low range is low.
Maybe one of my customers (Neil F.) says it better than I can:
“I like to think of the High Volume Churn bars as 'brakes'. It's like hitting the brakes – usually, the car will stop shortly thereafter (1-2 points), and then turn around. At other times, however, the momentum is so great that all you get is a pause and then the market just continues going in the same direction! Unfortunately, sometimes it is hard to tell which outcome will occur. Then you just need common sense.â€
Occasionally Volume Climax (up or down) and High Volume Churn bars coincide and these bars are colored magenta.
A word of caution with intra-day charts. High Volume Churn often appears on the last bars of the trading day. This does not necessarily represent a possible turning point, but is more likely just to be high volume from day traders closing out positions.
Better Volume Indicator: Low Volume
Better Volume Indicator: Low Volume (Emini 5 min)
Low Volume bars are identified by looking for the lowest volume in the last 20 bars (default setting). Low Volume bars indicate a lack of demand at tops or a lack of supply at bottoms. The default setting is to color the bars yellow.
Low Volume bars are typically seen at:
The end of up trends
The end of down trends, and
Pullbacks mid-trend.
Low Volume bars are my favourite volume indicator signal. They show what the amateurs are doing on tick charts. They are also very useful confirming indicators of a change in trend direction when the market is testing a top or bottom.
Better Volume Indicator: TradeStation EasyLanguage Code
Inputs: LowVol(True), ClimaxUp(True), ClimaxDown(True), Churn(True) …
Variables: BarColor(Cyan);
BarColor = Color;
If BarType > 1 or UseUpTicks = False then begin
If C > O and Range 0 then Value1 = (Range/
(2*Range+O-C))*UpTicks;
If C < O and Range 0 then Value1 = ((Range+C-O)/ (2*Range+C-O))*UpTicks; If C = O then Value1 = 0.5*UpTicks; Value2 = UpTicks-Value1; End; If BarType Share here's the code. SetChartBkColor( ParamColor("BK COLOR",colorBlack)); Color=(colorGrey50); //=(colorAqua)== BarColor(Cyan) LowColor=(colorYellow); ClimaxColor=(colorRed); ChurnColor=(colorGreen); ClimaxChurnColor=(colorCustom12); LowChurnColor=(colorWhite); //AvgColor(Red); //Variables: BarColor(Cyan); BarColor = Color; range=H-L; Value1 = V; Value2 = V*Range; Value3 = IIf(range < Ref(range, -1) OR range > Ref(range, -1), V, IIf(range == Ref(range, -1), V /Range , 0));
//if Range <> 0 then Value3 = V/Range;
Value4 = MA(Value1,30);
Color12=
IIf (Value1 == LLV(Value1,20), LowColor,
IIf (Value2 == HHV(Value2,20), ClimaxColor,
IIf (Value3 == HHV(Value3,20), ChurnColor,
IIf (Value2 == HHV(Value2,20) AND Value3 == HHV(Value3,20), ClimaxChurnColor,
IIf (Value3 == LLV(Value3,20) ,LowChurnColor,Color)))));
Plot(Value1,"Volume",Color12,2+4);
Plot(Value4,"Avg",colorYellow);
04 May 2011
AMIBROKER: SHORT-TERM VOLUME AND PRICE OSCILLATOR
In "Short Term Volume And Price Oscillator," Sylvain Vervoort presents a new indicator that is said to generate short-term entry and exit signals based on a combination of price and volume action.
The AmiBroker formula language (AFL) implementation of the SVAPO indicator is straightforward. In addition to code based on the formula presented in Vervoort's article, we have included code that draws buy and sell arrows automatically based on change in direction of SVAPO (Figure 4). As a criterion for gauging change in direction, we have chosen the situation where SVAPO moves in one direction for at least four consecutive bars and then moves in the opposite direction in the last bar. It is worth noting that some of the signals generated that way are premature. Additional checks may be added, but this will result in delaying the signal.
// input parameters
Period = Param("SVAPO period", 8, 2, 20, 1 );
CutOff = Param("Min. % price change", 1, 0, 10, 0.1 );
devH = Param("Std. Dev High", 1.5, 0.1, 5, 0.1 );
devL = Param("Std. Dev Low", 1.3, 0.1, 5, 0.1 );
StDevPer = Param("Std. Dev. Period", 100, 1, 200, 1 );
// heikin-ashi smoothing
Av4 = (O+H+L+C)/4;
HaOpen = AMA( Ref( Av4, -1 ), 0.5 );
HaCl = ( Av4 + HaOpen + Max( Av4, Max( H, HaOpen ) ) + Min( Av4, Min( L, HaOpen ) ) ) / 4;
HaC = TEMA( HaCl, period/1.6 );
// medium term MA of volume to limit extremes
Vave = Ref( MA( V, period * 5 ), -1 );
Vmax = Vave * 2;
Vc = Min( V, Vmax );
// basic volume trend
Vtr = TEMA( LinRegSlope( V, period ), period );
HaCLimitUp = Ref( HaC, -1 ) * (1 + Cutoff/1000);
HaCLimitDn = Ref( HaC, -1 ) * (1 - Cutoff/1000);
// SVAPO result of price and volume
SVAPOSum = Sum( IIf( ( HaC > HaCLimitUp ) AND Hold( Vtr >= Ref( Vtr,-1 ), 2 ), Vc,
IIf( ( HaC < HaCLimitDn ) AND Hold( Vtr > Ref( Vtr, -1 ), 2 ), -Vc, 0 ) ),period );
SVAPO = TEMA( SVAPOSum / (Vave+1), period );
PlotGrid( 0 );
Plot( SVAPO, "SVAPO", colorBlue, styleThick );
Plot( devH * StDev( SVAPO, StDevPer ), "Up", colorGreen );
Plot( -devL * StDev( SVAPO, StDevPer ), "Dn", colorRed );
Chg = SVAPO - Ref( SVAPO, -1 );
BuySig = Chg > 0 AND Sum( Chg < 0, 5 ) == 4; SellSig = Chg < 0 AND Sum( Chg > 0, 5 ) == 4;
PlotShapes( shapeUpArrow * BuySig, colorGreen );
PlotShapes( shapeDownArrow * SellSig, colorRed );
The AmiBroker formula language (AFL) implementation of the SVAPO indicator is straightforward. In addition to code based on the formula presented in Vervoort's article, we have included code that draws buy and sell arrows automatically based on change in direction of SVAPO (Figure 4). As a criterion for gauging change in direction, we have chosen the situation where SVAPO moves in one direction for at least four consecutive bars and then moves in the opposite direction in the last bar. It is worth noting that some of the signals generated that way are premature. Additional checks may be added, but this will result in delaying the signal.
// input parameters
Period = Param("SVAPO period", 8, 2, 20, 1 );
CutOff = Param("Min. % price change", 1, 0, 10, 0.1 );
devH = Param("Std. Dev High", 1.5, 0.1, 5, 0.1 );
devL = Param("Std. Dev Low", 1.3, 0.1, 5, 0.1 );
StDevPer = Param("Std. Dev. Period", 100, 1, 200, 1 );
// heikin-ashi smoothing
Av4 = (O+H+L+C)/4;
HaOpen = AMA( Ref( Av4, -1 ), 0.5 );
HaCl = ( Av4 + HaOpen + Max( Av4, Max( H, HaOpen ) ) + Min( Av4, Min( L, HaOpen ) ) ) / 4;
HaC = TEMA( HaCl, period/1.6 );
// medium term MA of volume to limit extremes
Vave = Ref( MA( V, period * 5 ), -1 );
Vmax = Vave * 2;
Vc = Min( V, Vmax );
// basic volume trend
Vtr = TEMA( LinRegSlope( V, period ), period );
HaCLimitUp = Ref( HaC, -1 ) * (1 + Cutoff/1000);
HaCLimitDn = Ref( HaC, -1 ) * (1 - Cutoff/1000);
// SVAPO result of price and volume
SVAPOSum = Sum( IIf( ( HaC > HaCLimitUp ) AND Hold( Vtr >= Ref( Vtr,-1 ), 2 ), Vc,
IIf( ( HaC < HaCLimitDn ) AND Hold( Vtr > Ref( Vtr, -1 ), 2 ), -Vc, 0 ) ),period );
SVAPO = TEMA( SVAPOSum / (Vave+1), period );
PlotGrid( 0 );
Plot( SVAPO, "SVAPO", colorBlue, styleThick );
Plot( devH * StDev( SVAPO, StDevPer ), "Up", colorGreen );
Plot( -devL * StDev( SVAPO, StDevPer ), "Dn", colorRed );
Chg = SVAPO - Ref( SVAPO, -1 );
BuySig = Chg > 0 AND Sum( Chg < 0, 5 ) == 4; SellSig = Chg < 0 AND Sum( Chg > 0, 5 ) == 4;
PlotShapes( shapeUpArrow * BuySig, colorGreen );
PlotShapes( shapeDownArrow * SellSig, colorRed );
sylvian vervroot svapo trail stop and zerolag
AMIBROKER, TRADING DIVERGENCES. Here is a sample AmiBroker chart demonstrating the RSI(14) overlay (lower pane) and five-day SVAPO
LISTING 1: Zero-lag moving average
function ZeroLagMA( data, periods )
{
EMA1 = EMA( data, periods );
EMA2 = EMA( EMA1, periods );
Diff = EMA1 - EMA2;
return EMA1 + Diff;
}
Periods = Param("Periods", 20, 2, 100 );
Plot( ZeroLagMA( Close, Periods ), "ZeroLagMA-"+Periods, colorRed );
LISTING 2: SVAPO price-only
// input parameters
Period = Param("SVAPO period", 8, 2, 20, 1 );
CutOff = Param("Min. % price change", 1, 0, 10, 0.1 );
devH = Param("Std. Dev High", 1.5, 0.1, 5, 0.1 );
devL = Param("Std. Dev Low", 1.3, 0.1, 5, 0.1 );
StDevPer = Param("Std. Dev. Period", 100, 1, 200, 1 );
// heikin-ashi smoothing
Av4 = (O+H+L+C)/4;
HaOpen = AMA( Ref( Av4, -1 ), 0.5 );
HaCl = ( Av4 + HaOpen + Max( Av4, Max( H, HaOpen ) ) + Min( Av4, Min( L, HaOpen ) ) ) / 4;
HaC = TEMA( HaCl, period/1.6 );
// medium term MA of volume to limit extremes
Vave = Ref( MA( C, period * 5 ), -1 );
// basic trend
Vtr = TEMA( LinRegSlope( C, period ), period );
HaCLimitUp = Ref( HaC, -1 ) * (1 + Cutoff/1000);
HaCLimitDn = Ref( HaC, -1 ) * (1 - Cutoff/1000);
// SVAPO result of price only
SVAPOSum = Sum( IIf( ( HaC > HaCLimitUp ) AND Hold( Vtr >= Ref( Vtr,-1 ), 2 ), C,
IIf( ( HaC < HaCLimitDn ) AND Hold( Vtr > Ref( Vtr, -1 ), 2 ), -C, 0 ) ), period );
SVAPO = TEMA( SVAPOSum / (Vave+1), period );
PlotGrid( 0 );
Plot( SVAPO, "SVAPO", colorBlue, styleThick );
Plot( devH * StDev( SVAPO, StDevPer ), "Up", colorGreen );
Plot( -devL * StDev( SVAPO, StDevPer ), "Dn", colorRed );
LISTING 3: Trailing stop reversal
stop = Param("Trailing Stop", 7, 0, 20 );
trail = Null;
for( i = 1; i < BarCount; i++ ) { prev = trail[ i - 1 ]; Cur = 0; if( prev == C[ i ] ) Cur = prev; else if( C[ i - 1 ] < prev AND C[ i ] < prev ) Cur = Min( prev, C[ i ] * ( 1 + stop/100 ) ); else if( C[ i - 1 ] > prev AND C[ i ] > prev )
Cur = Max( prev, C[ i ] * ( 1 - stop/100 ) );
else
if( C[ i ] > prev )
Cur = C[ i ] * ( 1 - stop/100 );
else
Cur = C[ i ] * ( 1 + stop/100 );
trail[ i ] = Cur;
}
Plot( C, "Price", colorBlack );
Plot( trail, "Trailstop", colorRed );
LISTING 1: Zero-lag moving average
function ZeroLagMA( data, periods )
{
EMA1 = EMA( data, periods );
EMA2 = EMA( EMA1, periods );
Diff = EMA1 - EMA2;
return EMA1 + Diff;
}
Periods = Param("Periods", 20, 2, 100 );
Plot( ZeroLagMA( Close, Periods ), "ZeroLagMA-"+Periods, colorRed );
LISTING 2: SVAPO price-only
// input parameters
Period = Param("SVAPO period", 8, 2, 20, 1 );
CutOff = Param("Min. % price change", 1, 0, 10, 0.1 );
devH = Param("Std. Dev High", 1.5, 0.1, 5, 0.1 );
devL = Param("Std. Dev Low", 1.3, 0.1, 5, 0.1 );
StDevPer = Param("Std. Dev. Period", 100, 1, 200, 1 );
// heikin-ashi smoothing
Av4 = (O+H+L+C)/4;
HaOpen = AMA( Ref( Av4, -1 ), 0.5 );
HaCl = ( Av4 + HaOpen + Max( Av4, Max( H, HaOpen ) ) + Min( Av4, Min( L, HaOpen ) ) ) / 4;
HaC = TEMA( HaCl, period/1.6 );
// medium term MA of volume to limit extremes
Vave = Ref( MA( C, period * 5 ), -1 );
// basic trend
Vtr = TEMA( LinRegSlope( C, period ), period );
HaCLimitUp = Ref( HaC, -1 ) * (1 + Cutoff/1000);
HaCLimitDn = Ref( HaC, -1 ) * (1 - Cutoff/1000);
// SVAPO result of price only
SVAPOSum = Sum( IIf( ( HaC > HaCLimitUp ) AND Hold( Vtr >= Ref( Vtr,-1 ), 2 ), C,
IIf( ( HaC < HaCLimitDn ) AND Hold( Vtr > Ref( Vtr, -1 ), 2 ), -C, 0 ) ), period );
SVAPO = TEMA( SVAPOSum / (Vave+1), period );
PlotGrid( 0 );
Plot( SVAPO, "SVAPO", colorBlue, styleThick );
Plot( devH * StDev( SVAPO, StDevPer ), "Up", colorGreen );
Plot( -devL * StDev( SVAPO, StDevPer ), "Dn", colorRed );
LISTING 3: Trailing stop reversal
stop = Param("Trailing Stop", 7, 0, 20 );
trail = Null;
for( i = 1; i < BarCount; i++ ) { prev = trail[ i - 1 ]; Cur = 0; if( prev == C[ i ] ) Cur = prev; else if( C[ i - 1 ] < prev AND C[ i ] < prev ) Cur = Min( prev, C[ i ] * ( 1 + stop/100 ) ); else if( C[ i - 1 ] > prev AND C[ i ] > prev )
Cur = Max( prev, C[ i ] * ( 1 - stop/100 ) );
else
if( C[ i ] > prev )
Cur = C[ i ] * ( 1 - stop/100 );
else
Cur = C[ i ] * ( 1 + stop/100 );
trail[ i ] = Cur;
}
Plot( C, "Price", colorBlack );
Plot( trail, "Trailstop", colorRed );
SMOOTHED RSI INVERSE FISHER TRANSFORM
Calculation of Sylvain Vervoort’s smoothed Rsi inverse Fisher transform, as presented in his article in this issue, begins by smoothing the price curve with the “rainbow” weighted moving average. This smoothed price curve is used to calculate an Rsi, which is then smoothed with the Vervoort zero-lag exponential moving average. The resulting curve is then transformed with an inverse Fisher filter.
Fisher suggests that a breakout above 12 indicates buying opportunities and a breakdown below 88 indicates selling opportunities. These opportunities should then be studied in the context of a slow stochastic and Vervoort’s own Arsi indicator. Here, we present the code for Vervoort’s rainbow (the indicator code) and Rsi_InverseFisher transforms (indicator and strategy code). The “Sve_RainbowAverage” function is used in the strategy and indicators.
AMIBROKER: SMOOTHED RSI INVERSE FISHER TRANSFORM
Implementing a smoothed Rsi inverse Fisher transform as described in Sylvain Vervoort’s article in this issue is easy in AmiBroker Formula Language (Afl).
A ready-to-use formula for the article is presented in Listing 1. Note that instead of the difficult-to-read, nested code of the original article, we use iteration (a loop). This results not only in cleaner code but also allows changing the “depth” of the rainbow without the need to recode the formula. In addition to that, we are also providing an asymmetrical Rsi (Arsi) formula in Listing 2. To use it, enter the formula in the Afl editor, then press the Insert Indicator button.
LISTING 1
// TASC Oct 2010 - SVE Inv Fisher
RSIPer = Param("RSI Period", 4, 2, 30 );
EMAper = Param("EMA Period", 4, 1, 100 );
mwiter = C;
RainbW = 0;
for( i = 0; i < 10; i++ ) { weight = Max( 5 - i, 1 ); mwiter = WMA( mwiter, 2 ); RainbW += weight * mwiter; } RainbW /= 20; x = 0.1 * ( RSIa( RainbW, RSIper ) - 50 ); EMA1 = EMA( x, EMAPer ); EMA2 = EMA( EMA1, EMAPer ); Difference = EMA1 - EMA2; Z1Ema = EMA1 + Difference; ex = exp( 2 * Z1EMA ); y = ( ex - 1 )/( ex + 1 ); invfish = 50 * ( y + 1 ); Plot( invfish, "SVE Inverse Fisher RSI", colorRed ); LISTING 2 // ARSI formula // variable period version Period = Param("ARSI Period", 14, 1, 100 ); Chg = C - Ref( C, -1 ); UpCount = Sum( Chg >= 0, Period );
DnCount = Period - UpCount;
UpMove = AMA( Max( Chg, 0 ), Nz( 1/UpCount ) );
DnMove = AMA( Max( -Chg, 0 ), Nz( 1/DnCount ) );
RS = UpMove/DnMove;
ARSI = 100-(100/(1+RS));
Plot( ARSI, "ARSI_V("+Period+")", colorBlue );
nb:change parameter like arsi 8,5,12 and stoch k 50,20,12 days which is suitable for you.
I use 8 days arsi and stoch 21 day .it is working cool for me.
Calculation of Sylvain Vervoort’s smoothed Rsi inverse Fisher transform, as presented in his article in this issue, begins by smoothing the price curve with the “rainbow” weighted moving average. This smoothed price curve is used to calculate an Rsi, which is then smoothed with the Vervoort zero-lag exponential moving average. The resulting curve is then transformed with an inverse Fisher filter.
Fisher suggests that a breakout above 12 indicates buying opportunities and a breakdown below 88 indicates selling opportunities. These opportunities should then be studied in the context of a slow stochastic and Vervoort’s own Arsi indicator. Here, we present the code for Vervoort’s rainbow (the indicator code) and Rsi_InverseFisher transforms (indicator and strategy code). The “Sve_RainbowAverage” function is used in the strategy and indicators.
AMIBROKER: SMOOTHED RSI INVERSE FISHER TRANSFORM
Implementing a smoothed Rsi inverse Fisher transform as described in Sylvain Vervoort’s article in this issue is easy in AmiBroker Formula Language (Afl).
A ready-to-use formula for the article is presented in Listing 1. Note that instead of the difficult-to-read, nested code of the original article, we use iteration (a loop). This results not only in cleaner code but also allows changing the “depth” of the rainbow without the need to recode the formula. In addition to that, we are also providing an asymmetrical Rsi (Arsi) formula in Listing 2. To use it, enter the formula in the Afl editor, then press the Insert Indicator button.
LISTING 1
// TASC Oct 2010 - SVE Inv Fisher
RSIPer = Param("RSI Period", 4, 2, 30 );
EMAper = Param("EMA Period", 4, 1, 100 );
mwiter = C;
RainbW = 0;
for( i = 0; i < 10; i++ ) { weight = Max( 5 - i, 1 ); mwiter = WMA( mwiter, 2 ); RainbW += weight * mwiter; } RainbW /= 20; x = 0.1 * ( RSIa( RainbW, RSIper ) - 50 ); EMA1 = EMA( x, EMAPer ); EMA2 = EMA( EMA1, EMAPer ); Difference = EMA1 - EMA2; Z1Ema = EMA1 + Difference; ex = exp( 2 * Z1EMA ); y = ( ex - 1 )/( ex + 1 ); invfish = 50 * ( y + 1 ); Plot( invfish, "SVE Inverse Fisher RSI", colorRed ); LISTING 2 // ARSI formula // variable period version Period = Param("ARSI Period", 14, 1, 100 ); Chg = C - Ref( C, -1 ); UpCount = Sum( Chg >= 0, Period );
DnCount = Period - UpCount;
UpMove = AMA( Max( Chg, 0 ), Nz( 1/UpCount ) );
DnMove = AMA( Max( -Chg, 0 ), Nz( 1/DnCount ) );
RS = UpMove/DnMove;
ARSI = 100-(100/(1+RS));
Plot( ARSI, "ARSI_V("+Period+")", colorBlue );
nb:change parameter like arsi 8,5,12 and stoch k 50,20,12 days which is suitable for you.
I use 8 days arsi and stoch 21 day .it is working cool for me.
21 April 2011
Range Expansion Index REI
AFL Formula Library: DeMarker and Range Expansion Index
DeMarker
The DeMarker indicator is an attempt to overcome the shortcomings of classical overbought / oversold indicators. The DeMarker Indicator identifies potential price bottoms and tops. It accomplishes this by making price comparisons from one bar to the next and measuring the level of price demand. The formula for DeMarker is quite simple - in AFL it looks like this:
/*
** Tom Demark's DeMarker Indicator
** AFL Implementation by Tomasz Janeczko
*/
highm = IIF( H > Ref( H, -1 ), H - Ref( H, - 1), 0 );
lowm = IIF( L < Ref( L, -1 ), Ref( L, - 1 ) - L, 0 ); DeMarker = 100 * Sum( highm, 13 )/( Sum( lowm, 13 ) + Sum( highm, 13 ) ); graph0 = DeMarker; DeMarker should be interpreted as other overbought / oversold indicators such as RSI with the levels of 30 and 70. Compared to RSI it is smoother but still able to detect tops and bottoms a little bit better. Range Expansion Index The DeMark Range Expansion Index is a market-timing oscillator described in DeMark on Day Trading Options, by T.R. DeMark and T.R. Demark, Jr., McGraw Hill, 1999. The oscillator is arithmetically calculated and is designed to overcome problems with exponentially calculated oscillators, like MACD. The TD REI oscillator typically produces values of -100 to +100 with 45 or higher indicating overbought conditions and -45 or lower indicating oversold. Here is how Tom DeMark describes the calculation of Range Expansion Index: "The first step in calculating the REI is to add together the respective differences between the current day's high and the high two days earlier and the current day's low and the low two days earlier. These values will be positive or negative depending on whether the current day's high and low are greater or less than the high and low two days earlier. To prevent buying or selling prematurely into a steep price decline or advance, two additional conditions should be met to qualify a positive or negative value on a particular day: 1) either the high two days earlier must be greater than or equal to the close seven or eight days ago, or the current day's high must be greater than or equal to the low five or six days ago; 2) either the low two days earlier must be less than or equal to the close seven or eight days ago, or the current day's low must be less than or equal to the high five or six days ago. If either of these conditions are not satisfied, a zero value is assigned to that day. If they both are, the daily values (the differences between the highs and lows) are summed , and the specific value for that next day is determined. Next, all the positives and negative values are added together over a five-day period. This value is then divided by the absolute value price movement of each day over the five-day period. The numerator of the calculation can be either positive, negative or zero, because each day's value is summed for five days, but the denominator is always positive because it is only concerned with the differential price movement itself. This value is then multiplied by 100. Consequently, the REI can fluctuate between +100 and -100." Following this description I wrote the AFL formula for REI: /* ** Tom DeMark's Range Expansion Index ** AFL Implementation by Tomasz Janeczko */ HighMom = H - Ref( H, -2 ); LowMom = L - Ref( L, -2 ); Cond1 = ( H >= Ref( L,-5) OR H >= Ref( L, -6 ) );
Cond2 = ( Ref( H, -2 ) >= Ref( C, -7 ) OR Ref( H, -2 ) >= Ref( C, -8 ) );
Cond3 = ( L <= Ref( H, -5 ) OR L <= Ref( H, -6) ); Cond4 = ( Ref( L, -2 ) <= Ref( C, -7 ) OR Ref( L, -2 ) <= Ref( C, -8 ) ); Cond = ( Cond1 OR Cond2 ) AND ( Cond3 OR Cond4 ); Num = IIf( Cond, HighMom + LowMom, 0 ); Den = Abs( HighMom ) + Abs( LowMom ); TDREI = 100 * Sum( Num, 5 )/Sum( Den, 5 ) ; graph0 = TDREI; DeMark advises against trading in extreme overbought or oversold conditions indicated by six or more bars above or below the 45 thresholds. For more information on calculation and using both TD REI and DeMarker indicator check Tom DeMark's site.
DeMarker
The DeMarker indicator is an attempt to overcome the shortcomings of classical overbought / oversold indicators. The DeMarker Indicator identifies potential price bottoms and tops. It accomplishes this by making price comparisons from one bar to the next and measuring the level of price demand. The formula for DeMarker is quite simple - in AFL it looks like this:
/*
** Tom Demark's DeMarker Indicator
** AFL Implementation by Tomasz Janeczko
*/
highm = IIF( H > Ref( H, -1 ), H - Ref( H, - 1), 0 );
lowm = IIF( L < Ref( L, -1 ), Ref( L, - 1 ) - L, 0 ); DeMarker = 100 * Sum( highm, 13 )/( Sum( lowm, 13 ) + Sum( highm, 13 ) ); graph0 = DeMarker; DeMarker should be interpreted as other overbought / oversold indicators such as RSI with the levels of 30 and 70. Compared to RSI it is smoother but still able to detect tops and bottoms a little bit better. Range Expansion Index The DeMark Range Expansion Index is a market-timing oscillator described in DeMark on Day Trading Options, by T.R. DeMark and T.R. Demark, Jr., McGraw Hill, 1999. The oscillator is arithmetically calculated and is designed to overcome problems with exponentially calculated oscillators, like MACD. The TD REI oscillator typically produces values of -100 to +100 with 45 or higher indicating overbought conditions and -45 or lower indicating oversold. Here is how Tom DeMark describes the calculation of Range Expansion Index: "The first step in calculating the REI is to add together the respective differences between the current day's high and the high two days earlier and the current day's low and the low two days earlier. These values will be positive or negative depending on whether the current day's high and low are greater or less than the high and low two days earlier. To prevent buying or selling prematurely into a steep price decline or advance, two additional conditions should be met to qualify a positive or negative value on a particular day: 1) either the high two days earlier must be greater than or equal to the close seven or eight days ago, or the current day's high must be greater than or equal to the low five or six days ago; 2) either the low two days earlier must be less than or equal to the close seven or eight days ago, or the current day's low must be less than or equal to the high five or six days ago. If either of these conditions are not satisfied, a zero value is assigned to that day. If they both are, the daily values (the differences between the highs and lows) are summed , and the specific value for that next day is determined. Next, all the positives and negative values are added together over a five-day period. This value is then divided by the absolute value price movement of each day over the five-day period. The numerator of the calculation can be either positive, negative or zero, because each day's value is summed for five days, but the denominator is always positive because it is only concerned with the differential price movement itself. This value is then multiplied by 100. Consequently, the REI can fluctuate between +100 and -100." Following this description I wrote the AFL formula for REI: /* ** Tom DeMark's Range Expansion Index ** AFL Implementation by Tomasz Janeczko */ HighMom = H - Ref( H, -2 ); LowMom = L - Ref( L, -2 ); Cond1 = ( H >= Ref( L,-5) OR H >= Ref( L, -6 ) );
Cond2 = ( Ref( H, -2 ) >= Ref( C, -7 ) OR Ref( H, -2 ) >= Ref( C, -8 ) );
Cond3 = ( L <= Ref( H, -5 ) OR L <= Ref( H, -6) ); Cond4 = ( Ref( L, -2 ) <= Ref( C, -7 ) OR Ref( L, -2 ) <= Ref( C, -8 ) ); Cond = ( Cond1 OR Cond2 ) AND ( Cond3 OR Cond4 ); Num = IIf( Cond, HighMom + LowMom, 0 ); Den = Abs( HighMom ) + Abs( LowMom ); TDREI = 100 * Sum( Num, 5 )/Sum( Den, 5 ) ; graph0 = TDREI; DeMark advises against trading in extreme overbought or oversold conditions indicated by six or more bars above or below the 45 thresholds. For more information on calculation and using both TD REI and DeMarker indicator check Tom DeMark's site.
06 April 2011
ZeroLag W%R for Amibroker (AFL)
Williams %R, or just %R, is a technical analysis oscillator showing the current closing price in relation to the high and low of the past N days (for a given N). It was developed by a publisher and promoter of trading materials, Larry Williams. Its purpose is to tell whether a stock or commodity market is trading near the high or the low, or somewhere in between, of its recent trading range.The oscillator is on a negative scale, from -100 (lowest) up to 0 (highest), considered unusual since it is the obverse of the more common 0 to 100 scale found in many Technical Analysis oscillators. Although sometimes altered (by simply adding 100), this scale needn’t cause any confusion. A value of -100 is the close today at the lowest low of the past N days, and 0 is a close today at the highest high of the past N days.
Williams used a 10 trading day period and considered values below -80 as oversold and above -20 as overbought. But they were not to be traded directly, instead his rule to buy an oversold was
R reaches -100.
Five trading days pass since -100% was last reached
R rises above -95 or -85%.
or conversely to sell an overbought condition
R reaches 0.
Five trading days pass since 0% was last reached
R falls below -5 or -15%.
The timeframe can be changed for either more sensitive or smoother results. The more sensitive you make it, though, the more false signals you will get. The “close-position within a range” in the %R indicator is the same as the %K stochastic oscillator, on a different scale.
period1 = Param( "Period 1", 10, 2, 200, 1 );
period2 = Param( "Period 2", 5, 2, 200, 1 );
/*ZeroLag W%R*/
"========";
GraphXSpace = 3;
R = ((HHV(H,14) - C) /(HHV (H,14) -LLV (L,14))) *-100;
MaxGraph=10;
//Period= 10;
EMA1= EMA(R,period1);
EMA2= EMA(EMA1,period2);
Difference= EMA1 - EMA2;
ZeroLagEMA= EMA1 + Difference;
PR=100-abs(ZeroLagEMA);
Graph0=PR;
MoveAvg=MA(PR,5);
Graph1=MoveAvg;
Graph1Color=colorTan;
Graph0Style=4;
upbar= PR>= MoveAvg AND PR>= Ref(PR,-1) ;
downbar=(PR < MoveAvg) OR PR>= MoveAvg AND PR< Ref(PR,-1) ;
barcolor = IIf( downbar,colorRed, IIf( upbar, colorBrightGreen, 7));
Graph0BarColor = ValueWhen( barcolor != 0, barcolor );
Graph2=30;
Graph3=70;
Graph2Style=Graph3Style=Graph4Style=1;
Graph4Color=2;
Graph2Color=5;
Graph3Color=4;
Graph5=0;
Graph6=100;
Graph5Style=Graph6Style=1;
Graph5Color=Graph6Color=2;
Title=Name()+" < ZeroLag W%R :"+WriteVal(PR)+"%";
Williams used a 10 trading day period and considered values below -80 as oversold and above -20 as overbought. But they were not to be traded directly, instead his rule to buy an oversold was
R reaches -100.
Five trading days pass since -100% was last reached
R rises above -95 or -85%.
or conversely to sell an overbought condition
R reaches 0.
Five trading days pass since 0% was last reached
R falls below -5 or -15%.
The timeframe can be changed for either more sensitive or smoother results. The more sensitive you make it, though, the more false signals you will get. The “close-position within a range” in the %R indicator is the same as the %K stochastic oscillator, on a different scale.
period1 = Param( "Period 1", 10, 2, 200, 1 );
period2 = Param( "Period 2", 5, 2, 200, 1 );
/*ZeroLag W%R*/
"========";
GraphXSpace = 3;
R = ((HHV(H,14) - C) /(HHV (H,14) -LLV (L,14))) *-100;
MaxGraph=10;
//Period= 10;
EMA1= EMA(R,period1);
EMA2= EMA(EMA1,period2);
Difference= EMA1 - EMA2;
ZeroLagEMA= EMA1 + Difference;
PR=100-abs(ZeroLagEMA);
Graph0=PR;
MoveAvg=MA(PR,5);
Graph1=MoveAvg;
Graph1Color=colorTan;
Graph0Style=4;
upbar= PR>= MoveAvg AND PR>= Ref(PR,-1) ;
downbar=(PR < MoveAvg) OR PR>= MoveAvg AND PR< Ref(PR,-1) ;
barcolor = IIf( downbar,colorRed, IIf( upbar, colorBrightGreen, 7));
Graph0BarColor = ValueWhen( barcolor != 0, barcolor );
Graph2=30;
Graph3=70;
Graph2Style=Graph3Style=Graph4Style=1;
Graph4Color=2;
Graph2Color=5;
Graph3Color=4;
Graph5=0;
Graph6=100;
Graph5Style=Graph6Style=1;
Graph5Color=Graph6Color=2;
Title=Name()+" < ZeroLag W%R :"+WriteVal(PR)+"%";
19 March 2011
Risk Vs Return - A Great Tutorial By David Jenyns
his following article has been extracted from David Jenyns' Trading Secrets Revealed Course and a must for traders to have a look into.
The most important rule in trading is to keep your losses small. This is the only way to ensure that if the market moves against you, you will live to trade another day – in other words, you will not suffer a loss that will take you out of the trading game. Remember, 95% of trades will lose – do your best not to be one of them.
One of the best ways to do this is to ensure that you have a fixed amount as a proportion of your account that you are willing to risk on any trade. This ensures that if you have a losing trade, you will only lose the predetermined amount.
This has been discussed in previous articles and will be discussed again in future ones as well. In general, the maximum loss should be set to no more than 1-3% of your total trading float. This seems very small but it can lead to huge gains in the long run.
Another rule is to try and estimate your target value. In other words, what is the value of the stock that you are expecting it to go to? You should only enter the trade if you expect the trade to provide more if you obtain your target value than lose if you hit your maximum loss value. Your mechanical trading system should be built with this principle in mind.
The Reward / Risk Ratio
This is a good time to introduce the principle of the reward / risk ratio. In principle, this ratio will provide you with a very important piece of information to decide whether to enter into a trade or not.
If we believe that a trade will provide three times more profit than the amount that is risked, then the reward / risk ratio is 3:1. In a similar way, if we believe that there is three times more risk to a trade than there is of the trade winning, then the reward / risk is 1:3. The example below illustrates this in more detail.
Example
We wish to purchase stock XYZ at $10 a share and we expect that the stock will increase to $11 over the space of about a month. We also place a stop level (i.e. a level that we will exit the stock) at $9.80 based on our mechanical trading system.
This means that the amount we will risk per share is $0.20 but we stand to gain approximately $1.00 per share. The reward / risk ratio is therefore 1:0.2 and this equates to 5:1. This means that there is 5 times more reward for the risk that you will incur. This trade seems like a good one to take!
Now we will not risk more than 2% of our account and that we have an account of $10,000. This means that we will not risk more than $400. As the reward/risk reward is 5:1, this means that we could stand to gain about $2,000 on this trade alone if we purchase $10,000 worth of shares!
As you will read further, it is not a good idea to put all of your money into one trade. The example above suggests that you will put all of your money into XYZ. In reality, it is a good idea to put only a fixed percentage of your money into one stock to ensure that you are not over exposed to the whims of one market alone. This will be discussed in future articles.
As another rule, the reward / risk must always be on your side – in other words, you must always have more of a chance to make more money than lose it. Some traders will insist on a reward / risk ratio of at least 3:1 before even considering the trade. They will not enter any other trade unless this ratio is met. You need to develop your own risk profile and stick to it.
The most important rule in trading is to keep your losses small. This is the only way to ensure that if the market moves against you, you will live to trade another day – in other words, you will not suffer a loss that will take you out of the trading game. Remember, 95% of trades will lose – do your best not to be one of them.
One of the best ways to do this is to ensure that you have a fixed amount as a proportion of your account that you are willing to risk on any trade. This ensures that if you have a losing trade, you will only lose the predetermined amount.
This has been discussed in previous articles and will be discussed again in future ones as well. In general, the maximum loss should be set to no more than 1-3% of your total trading float. This seems very small but it can lead to huge gains in the long run.
Another rule is to try and estimate your target value. In other words, what is the value of the stock that you are expecting it to go to? You should only enter the trade if you expect the trade to provide more if you obtain your target value than lose if you hit your maximum loss value. Your mechanical trading system should be built with this principle in mind.
The Reward / Risk Ratio
This is a good time to introduce the principle of the reward / risk ratio. In principle, this ratio will provide you with a very important piece of information to decide whether to enter into a trade or not.
If we believe that a trade will provide three times more profit than the amount that is risked, then the reward / risk ratio is 3:1. In a similar way, if we believe that there is three times more risk to a trade than there is of the trade winning, then the reward / risk is 1:3. The example below illustrates this in more detail.
Example
We wish to purchase stock XYZ at $10 a share and we expect that the stock will increase to $11 over the space of about a month. We also place a stop level (i.e. a level that we will exit the stock) at $9.80 based on our mechanical trading system.
This means that the amount we will risk per share is $0.20 but we stand to gain approximately $1.00 per share. The reward / risk ratio is therefore 1:0.2 and this equates to 5:1. This means that there is 5 times more reward for the risk that you will incur. This trade seems like a good one to take!
Now we will not risk more than 2% of our account and that we have an account of $10,000. This means that we will not risk more than $400. As the reward/risk reward is 5:1, this means that we could stand to gain about $2,000 on this trade alone if we purchase $10,000 worth of shares!
As you will read further, it is not a good idea to put all of your money into one trade. The example above suggests that you will put all of your money into XYZ. In reality, it is a good idea to put only a fixed percentage of your money into one stock to ensure that you are not over exposed to the whims of one market alone. This will be discussed in future articles.
As another rule, the reward / risk must always be on your side – in other words, you must always have more of a chance to make more money than lose it. Some traders will insist on a reward / risk ratio of at least 3:1 before even considering the trade. They will not enter any other trade unless this ratio is met. You need to develop your own risk profile and stick to it.
Trading Glossary - Part II (P-Z)
PIVOT: A market reference point. Our most frequently used pivots are swing highs and swing lows such as the high and low of a daily bar or the highs and lows of the hourly cycles.
PREMIUM (Nifty's): When the price of an index future is trading greater than Fair Value.
RAT TRADE: An afternoon breakout trade that is made in the generally taken place after 02:15 PM.
RESISTANCE: Area where Sellers have come in the past.
ROBUST: Refers to a method or system that is profitable across a variety of markets, time frames and parameters. It is the opposite 'curve-fit' or 'optimized.'
SCALP: A Short-term trade that capitalizes on the market's smaller fluctuations.
SHAKEOUT FAKEOUT: A sharp downward move following an area of distribution that quickly reverses itself and comes back up through the distribution area.
SHORT SKIRT: The name of a very short term pattern trade taken on a one-minuteNifty futures charts. A form of pullback trade on a very short time frame.
SKIDS: Slippage or the difference between the price that a stop order was placed and the actual fill price.
SLOP AND CHOP: Action in the market when institutions are absent and liquidity is poor.
SMA: Simple Moving Average.
SPRING: Originally a Wyckoff term, is used to denote an impulsive move often associated with a test of support. See also 'Upthrust.'
STOP ORDER: An order that becomes a market order when the price touches that level.
SUPPORT: Area where buyers have stepped in the past.
SWEET STUFF: Nickname for the sugar futures.
THREE PUSHES: A characteristic pattern that occurs near important turning points. Usually three distinct 'test' of a high or low level, followed by a reversal.
TICK: Smallest increment that a price can change. 1 tick on an Nifty contract = .05 points, which is the equivalent of Rs. 2.50.
TICKS: The difference between the number of issues on the NSE that are trading UP from the last trade versus the number of issues that are trading down.
TREND DAY: A day where the market opens on one end of its range, closes on the opposite end, shows range expansion and has an increase in volume.
TRIGGER: Level at which a trade will be initiated if a market trades to that price.
TRIN: The TRIN (also know as the Trading Index and the ARMS Index) was invented by Richard Arms in the 1970s. It is calculated as follows: (Advancing issues / Declining issues) divided by (Advancing volume / Declining volume). If the index is above one, the average volume of stocks that fell on the NSE was greater than the average volume of stocks that rose. If the index is below one, then the converse is true.
UPTHRUST: Originally a Wyckoff term, is used to denote an impulsive move often associated with a test of resistance. See also 'Spring.'
VIX: VIX is a weighted measure of the implied volatility for put and call options. VIX represents the implied volatility for this hypothetical at-the-money option.
VOLATILITY: The range of the price action over N -Number of bars.
WEDGE: A low volatility point in which a triangle type formation can be drawn on the bar charts. The market can break out in EITHER direction from this formation.
WHIPSAW: Is when the market rapidly reverses its direction several times in succession.
"Z" DAY: A consolidation day that typically follows a trend day
PREMIUM (Nifty's): When the price of an index future is trading greater than Fair Value.
RAT TRADE: An afternoon breakout trade that is made in the generally taken place after 02:15 PM.
RESISTANCE: Area where Sellers have come in the past.
ROBUST: Refers to a method or system that is profitable across a variety of markets, time frames and parameters. It is the opposite 'curve-fit' or 'optimized.'
SCALP: A Short-term trade that capitalizes on the market's smaller fluctuations.
SHAKEOUT FAKEOUT: A sharp downward move following an area of distribution that quickly reverses itself and comes back up through the distribution area.
SHORT SKIRT: The name of a very short term pattern trade taken on a one-minuteNifty futures charts. A form of pullback trade on a very short time frame.
SKIDS: Slippage or the difference between the price that a stop order was placed and the actual fill price.
SLOP AND CHOP: Action in the market when institutions are absent and liquidity is poor.
SMA: Simple Moving Average.
SPRING: Originally a Wyckoff term, is used to denote an impulsive move often associated with a test of support. See also 'Upthrust.'
STOP ORDER: An order that becomes a market order when the price touches that level.
SUPPORT: Area where buyers have stepped in the past.
SWEET STUFF: Nickname for the sugar futures.
THREE PUSHES: A characteristic pattern that occurs near important turning points. Usually three distinct 'test' of a high or low level, followed by a reversal.
TICK: Smallest increment that a price can change. 1 tick on an Nifty contract = .05 points, which is the equivalent of Rs. 2.50.
TICKS: The difference between the number of issues on the NSE that are trading UP from the last trade versus the number of issues that are trading down.
TREND DAY: A day where the market opens on one end of its range, closes on the opposite end, shows range expansion and has an increase in volume.
TRIGGER: Level at which a trade will be initiated if a market trades to that price.
TRIN: The TRIN (also know as the Trading Index and the ARMS Index) was invented by Richard Arms in the 1970s. It is calculated as follows: (Advancing issues / Declining issues) divided by (Advancing volume / Declining volume). If the index is above one, the average volume of stocks that fell on the NSE was greater than the average volume of stocks that rose. If the index is below one, then the converse is true.
UPTHRUST: Originally a Wyckoff term, is used to denote an impulsive move often associated with a test of resistance. See also 'Spring.'
VIX: VIX is a weighted measure of the implied volatility for put and call options. VIX represents the implied volatility for this hypothetical at-the-money option.
VOLATILITY: The range of the price action over N -Number of bars.
WEDGE: A low volatility point in which a triangle type formation can be drawn on the bar charts. The market can break out in EITHER direction from this formation.
WHIPSAW: Is when the market rapidly reverses its direction several times in succession.
"Z" DAY: A consolidation day that typically follows a trend day
PIVOT: A market reference point. Our most frequently used pivots are swing highs and swing lows such as the high and low of a daily bar or the highs and lows of the hourly cycles.
PREMIUM (Nifty's): When the price of an index future is trading greater than Fair Value.
RAT TRADE: An afternoon breakout trade that is made in the generally taken place after 02:15 PM.
RESISTANCE: Area where Sellers have come in the past.
ROBUST: Refers to a method or system that is profitable across a variety of markets, time frames and parameters. It is the opposite 'curve-fit' or 'optimized.'
SCALP: A Short-term trade that capitalizes on the market's smaller fluctuations.
SHAKEOUT FAKEOUT: A sharp downward move following an area of distribution that quickly reverses itself and comes back up through the distribution area.
SHORT SKIRT: The name of a very short term pattern trade taken on a one-minuteNifty futures charts. A form of pullback trade on a very short time frame.
SKIDS: Slippage or the difference between the price that a stop order was placed and the actual fill price.
SLOP AND CHOP: Action in the market when institutions are absent and liquidity is poor.
SMA: Simple Moving Average.
SPRING: Originally a Wyckoff term, is used to denote an impulsive move often associated with a test of support. See also 'Upthrust.'
STOP ORDER: An order that becomes a market order when the price touches that level.
SUPPORT: Area where buyers have stepped in the past.
SWEET STUFF: Nickname for the sugar futures.
THREE PUSHES: A characteristic pattern that occurs near important turning points. Usually three distinct 'test' of a high or low level, followed by a reversal.
TICK: Smallest increment that a price can change. 1 tick on an Nifty contract = .05 points, which is the equivalent of Rs. 2.50.
TICKS: The difference between the number of issues on the NSE that are trading UP from the last trade versus the number of issues that are trading down.
TREND DAY: A day where the market opens on one end of its range, closes on the opposite end, shows range expansion and has an increase in volume.
TRIGGER: Level at which a trade will be initiated if a market trades to that price.
TRIN: The TRIN (also know as the Trading Index and the ARMS Index) was invented by Richard Arms in the 1970s. It is calculated as follows: (Advancing issues / Declining issues) divided by (Advancing volume / Declining volume). If the index is above one, the average volume of stocks that fell on the NSE was greater than the average volume of stocks that rose. If the index is below one, then the converse is true.
UPTHRUST: Originally a Wyckoff term, is used to denote an impulsive move often associated with a test of resistance. See also 'Spring.'
VIX: VIX is a weighted measure of the implied volatility for put and call options. VIX represents the implied volatility for this hypothetical at-the-money option.
VOLATILITY: The range of the price action over N -Number of bars.
WEDGE: A low volatility point in which a triangle type formation can be drawn on the bar charts. The market can break out in EITHER direction from this formation.
WHIPSAW: Is when the market rapidly reverses its direction several times in succession.
"Z" DAY: A consolidation day that typically follows a trend day
PREMIUM (Nifty's): When the price of an index future is trading greater than Fair Value.
RAT TRADE: An afternoon breakout trade that is made in the generally taken place after 02:15 PM.
RESISTANCE: Area where Sellers have come in the past.
ROBUST: Refers to a method or system that is profitable across a variety of markets, time frames and parameters. It is the opposite 'curve-fit' or 'optimized.'
SCALP: A Short-term trade that capitalizes on the market's smaller fluctuations.
SHAKEOUT FAKEOUT: A sharp downward move following an area of distribution that quickly reverses itself and comes back up through the distribution area.
SHORT SKIRT: The name of a very short term pattern trade taken on a one-minuteNifty futures charts. A form of pullback trade on a very short time frame.
SKIDS: Slippage or the difference between the price that a stop order was placed and the actual fill price.
SLOP AND CHOP: Action in the market when institutions are absent and liquidity is poor.
SMA: Simple Moving Average.
SPRING: Originally a Wyckoff term, is used to denote an impulsive move often associated with a test of support. See also 'Upthrust.'
STOP ORDER: An order that becomes a market order when the price touches that level.
SUPPORT: Area where buyers have stepped in the past.
SWEET STUFF: Nickname for the sugar futures.
THREE PUSHES: A characteristic pattern that occurs near important turning points. Usually three distinct 'test' of a high or low level, followed by a reversal.
TICK: Smallest increment that a price can change. 1 tick on an Nifty contract = .05 points, which is the equivalent of Rs. 2.50.
TICKS: The difference between the number of issues on the NSE that are trading UP from the last trade versus the number of issues that are trading down.
TREND DAY: A day where the market opens on one end of its range, closes on the opposite end, shows range expansion and has an increase in volume.
TRIGGER: Level at which a trade will be initiated if a market trades to that price.
TRIN: The TRIN (also know as the Trading Index and the ARMS Index) was invented by Richard Arms in the 1970s. It is calculated as follows: (Advancing issues / Declining issues) divided by (Advancing volume / Declining volume). If the index is above one, the average volume of stocks that fell on the NSE was greater than the average volume of stocks that rose. If the index is below one, then the converse is true.
UPTHRUST: Originally a Wyckoff term, is used to denote an impulsive move often associated with a test of resistance. See also 'Spring.'
VIX: VIX is a weighted measure of the implied volatility for put and call options. VIX represents the implied volatility for this hypothetical at-the-money option.
VOLATILITY: The range of the price action over N -Number of bars.
WEDGE: A low volatility point in which a triangle type formation can be drawn on the bar charts. The market can break out in EITHER direction from this formation.
WHIPSAW: Is when the market rapidly reverses its direction several times in succession.
"Z" DAY: A consolidation day that typically follows a trend day
Trading Glossary - Part II (P-Z)
PIVOT: A market reference point. Our most frequently used pivots are swing highs and swing lows such as the high and low of a daily bar or the highs and lows of the hourly cycles.
PREMIUM (Nifty's): When the price of an index future is trading greater than Fair Value.
RAT TRADE: An afternoon breakout trade that is made in the generally taken place after 02:15 PM.
RESISTANCE: Area where Sellers have come in the past.
ROBUST: Refers to a method or system that is profitable across a variety of markets, time frames and parameters. It is the opposite 'curve-fit' or 'optimized.'
SCALP: A Short-term trade that capitalizes on the market's smaller fluctuations.
SHAKEOUT FAKEOUT: A sharp downward move following an area of distribution that quickly reverses itself and comes back up through the distribution area.
SHORT SKIRT: The name of a very short term pattern trade taken on a one-minuteNifty futures charts. A form of pullback trade on a very short time frame.
SKIDS: Slippage or the difference between the price that a stop order was placed and the actual fill price.
SLOP AND CHOP: Action in the market when institutions are absent and liquidity is poor.
SMA: Simple Moving Average.
SPRING: Originally a Wyckoff term, is used to denote an impulsive move often associated with a test of support. See also 'Upthrust.'
STOP ORDER: An order that becomes a market order when the price touches that level.
SUPPORT: Area where buyers have stepped in the past.
SWEET STUFF: Nickname for the sugar futures.
THREE PUSHES: A characteristic pattern that occurs near important turning points. Usually three distinct 'test' of a high or low level, followed by a reversal.
TICK: Smallest increment that a price can change. 1 tick on an Nifty contract = .05 points, which is the equivalent of Rs. 2.50.
TICKS: The difference between the number of issues on the NSE that are trading UP from the last trade versus the number of issues that are trading down.
TREND DAY: A day where the market opens on one end of its range, closes on the opposite end, shows range expansion and has an increase in volume.
TRIGGER: Level at which a trade will be initiated if a market trades to that price.
TRIN: The TRIN (also know as the Trading Index and the ARMS Index) was invented by Richard Arms in the 1970s. It is calculated as follows: (Advancing issues / Declining issues) divided by (Advancing volume / Declining volume). If the index is above one, the average volume of stocks that fell on the NSE was greater than the average volume of stocks that rose. If the index is below one, then the converse is true.
UPTHRUST: Originally a Wyckoff term, is used to denote an impulsive move often associated with a test of resistance. See also 'Spring.'
VIX: VIX is a weighted measure of the implied volatility for put and call options. VIX represents the implied volatility for this hypothetical at-the-money option.
VOLATILITY: The range of the price action over N -Number of bars.
WEDGE: A low volatility point in which a triangle type formation can be drawn on the bar charts. The market can break out in EITHER direction from this formation.
WHIPSAW: Is when the market rapidly reverses its direction several times in succession.
"Z" DAY: A consolidation day that typically follows a trend day
PREMIUM (Nifty's): When the price of an index future is trading greater than Fair Value.
RAT TRADE: An afternoon breakout trade that is made in the generally taken place after 02:15 PM.
RESISTANCE: Area where Sellers have come in the past.
ROBUST: Refers to a method or system that is profitable across a variety of markets, time frames and parameters. It is the opposite 'curve-fit' or 'optimized.'
SCALP: A Short-term trade that capitalizes on the market's smaller fluctuations.
SHAKEOUT FAKEOUT: A sharp downward move following an area of distribution that quickly reverses itself and comes back up through the distribution area.
SHORT SKIRT: The name of a very short term pattern trade taken on a one-minuteNifty futures charts. A form of pullback trade on a very short time frame.
SKIDS: Slippage or the difference between the price that a stop order was placed and the actual fill price.
SLOP AND CHOP: Action in the market when institutions are absent and liquidity is poor.
SMA: Simple Moving Average.
SPRING: Originally a Wyckoff term, is used to denote an impulsive move often associated with a test of support. See also 'Upthrust.'
STOP ORDER: An order that becomes a market order when the price touches that level.
SUPPORT: Area where buyers have stepped in the past.
SWEET STUFF: Nickname for the sugar futures.
THREE PUSHES: A characteristic pattern that occurs near important turning points. Usually three distinct 'test' of a high or low level, followed by a reversal.
TICK: Smallest increment that a price can change. 1 tick on an Nifty contract = .05 points, which is the equivalent of Rs. 2.50.
TICKS: The difference between the number of issues on the NSE that are trading UP from the last trade versus the number of issues that are trading down.
TREND DAY: A day where the market opens on one end of its range, closes on the opposite end, shows range expansion and has an increase in volume.
TRIGGER: Level at which a trade will be initiated if a market trades to that price.
TRIN: The TRIN (also know as the Trading Index and the ARMS Index) was invented by Richard Arms in the 1970s. It is calculated as follows: (Advancing issues / Declining issues) divided by (Advancing volume / Declining volume). If the index is above one, the average volume of stocks that fell on the NSE was greater than the average volume of stocks that rose. If the index is below one, then the converse is true.
UPTHRUST: Originally a Wyckoff term, is used to denote an impulsive move often associated with a test of resistance. See also 'Spring.'
VIX: VIX is a weighted measure of the implied volatility for put and call options. VIX represents the implied volatility for this hypothetical at-the-money option.
VOLATILITY: The range of the price action over N -Number of bars.
WEDGE: A low volatility point in which a triangle type formation can be drawn on the bar charts. The market can break out in EITHER direction from this formation.
WHIPSAW: Is when the market rapidly reverses its direction several times in succession.
"Z" DAY: A consolidation day that typically follows a trend day
Trading Glossary - Part II (G-O)
GOLF: A mechanical trade that is made in the index futures that is entered on the close of the day.
GRAIL: A trade set-up based on a pullback to the 20 period EMA after the 14 period ADX has risen above 30. Pullback in rallies are bought, and pullbacks in declines are sold short. This pattern was discussed at lenght in Street Smarts book.
IMPULSE: Increase in the market momentum. Impulse moves tend to happen in the direction of the trend. On a bar chart they have the appearance of a sharp markup or markdown.
INSTITUTIONS: Mutual funds, pension funds, banks, and large commercials.
KELTNER CHANNELS: A 'trading band' indicator that is displayed on top of price charts. Similar to Bollinger Bands but calculated differently, using true-range rather than standard deviation.
LAST CALL: Trade that setups up in the last hour of a trend day.
LOAD THE BOAT: Use full line of leverage.
MACD: An oscillator based on the difference between two moving averages. We use the difference between a 3 and 10-period simple moving average or 6 and 13-period simple moving average.
MARK UP: A Wyckoff term, used to denote the phase of the market where prices rise, from the beginning of a bull market to its top.
MARKET LEADERSHIP: Market leadership refers to those sectors and industries that are currently bringing in the best returns.
MARKET ORDER: An order to buy or sell a stock immediately at the best available current price. A market order guarantees execution.
MIT: Market-if-touched order. An order which becomes a market order if the specified price is reached.
MOC: Market-on-close order. A buy or sell order which is to be executed as a market order as close as possible to the end of the day.
MOMENTUM: The difference between the last price and the price N-numbers bar. A 2-period Rate of Change (ROC) is the same as a 2-period Momentum.
NR7: The narrowest high-low range of the past seven days.
OOPS TRADE: A term originally coined by Larry Williams which refers to a market that gaps below the previous day's low (or above the previous day's high) and then quickly reverses its direction.
OOZE: Down trending price action that slowly inches down without any upward reactions of any magnitude. One of the strongest forms of trending action.
OPENING BULGE: Period after the opening when the public has a tendency to pay too high a price.
OPENING PLAY: The markets first tendency of the day.
OUCH SETUPS: When a market Closes in the upper 75% of its range but then gaps lower the next day around the previous day's low (vice versa to the upside).
OVERHEAD SUPPLY: Are where the market had found support in the past but the price is currently trading lower.
GRAIL: A trade set-up based on a pullback to the 20 period EMA after the 14 period ADX has risen above 30. Pullback in rallies are bought, and pullbacks in declines are sold short. This pattern was discussed at lenght in Street Smarts book.
IMPULSE: Increase in the market momentum. Impulse moves tend to happen in the direction of the trend. On a bar chart they have the appearance of a sharp markup or markdown.
INSTITUTIONS: Mutual funds, pension funds, banks, and large commercials.
KELTNER CHANNELS: A 'trading band' indicator that is displayed on top of price charts. Similar to Bollinger Bands but calculated differently, using true-range rather than standard deviation.
LAST CALL: Trade that setups up in the last hour of a trend day.
LOAD THE BOAT: Use full line of leverage.
MACD: An oscillator based on the difference between two moving averages. We use the difference between a 3 and 10-period simple moving average or 6 and 13-period simple moving average.
MARK UP: A Wyckoff term, used to denote the phase of the market where prices rise, from the beginning of a bull market to its top.
MARKET LEADERSHIP: Market leadership refers to those sectors and industries that are currently bringing in the best returns.
MARKET ORDER: An order to buy or sell a stock immediately at the best available current price. A market order guarantees execution.
MIT: Market-if-touched order. An order which becomes a market order if the specified price is reached.
MOC: Market-on-close order. A buy or sell order which is to be executed as a market order as close as possible to the end of the day.
MOMENTUM: The difference between the last price and the price N-numbers bar. A 2-period Rate of Change (ROC) is the same as a 2-period Momentum.
NR7: The narrowest high-low range of the past seven days.
OOPS TRADE: A term originally coined by Larry Williams which refers to a market that gaps below the previous day's low (or above the previous day's high) and then quickly reverses its direction.
OOZE: Down trending price action that slowly inches down without any upward reactions of any magnitude. One of the strongest forms of trending action.
OPENING BULGE: Period after the opening when the public has a tendency to pay too high a price.
OPENING PLAY: The markets first tendency of the day.
OUCH SETUPS: When a market Closes in the upper 75% of its range but then gaps lower the next day around the previous day's low (vice versa to the upside).
OVERHEAD SUPPLY: Are where the market had found support in the past but the price is currently trading lower.
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