Standard MACD approach is lagging and very slow for typical entries in a fast moving market. If you trade stocks it may not be so bad but trading futures like the ES its another story. If you want to see one way how lag has been substantially reduced from the MACD google "zero lag macd group...
Only the most recent new high or low on the PREM feeds is considered predictive, unless the spike is gargantuan.
The PREM shift down today is generally viewed as very negative for the market. Typically we have a shift UP and a gradual degredation of the PREM over the contract period. But...
While there is plenty to talk about here, this chart shows a new low on the PREM (yellow arrow) at 14:29. The spoos are at 931.00. The predictive value of the PREM suggests at return to 931 or lower on 6/11/09 based on the June contract.
You write that at 9:01 the SP Prem made a new low while the ES Prem simultaneously made new high. So which Prem do you follow ?
My experience shows that when both situations take place simultaneously, I will favor the contra-indicator with a tight stop. If you are wrong it wont take long...
The PREM = the premium on any of the available data feeds. The symbol for the premium varies according to the source.
What is shown on the chart is from Tradestation.
Also PREM.Z, and EPREM AO from two relatively good data vendors
Courtesy of RSKsys
The PREM is calculated tick by tick, every time that there is a trade for @SP.P, TS uses this value of @SP.P minus the previous value of the $INX to calculate the tick of the $spinx. The same procedure is used with the $INX. The values for the minute bar are taken from the...
bmxrider379
Oh you mean Hank Camp? Evidently your reading skills seem to be suffering a bit. Perhaps you should see an eye doctor. As stated, "there may be more than one way to read the premium." And so since you seem to be in the know, although its seems you never have attended one of...
The PREM or more specifically the S&P Premium, or ES Premium or Nasdaq Premium is one of the few leading indicators that actually works. It will not tell you when to trade. But it will tell you what the ES is going to do sometimes hours before it occurs. The issue is how to read it. While...
RandomZen wrote
There are several ways to read the PREM. My post was only addressing new day highs or new lows on the PREM and what the ES Price activity was doing at that simultaneous moment. For a complete set of rules on how to read the PREM you can find them at...
Just as stated the spoos dropped below 882 however they did so earlier than expected. On 5/24/09 at 21:47 just as predicted by the Prem on 5/22 at 8:54 am.
Here is the ADSPD gap chart from 5/22/09
Another reason you expected a short on Friday was the two significant gaps at 69 and -24. Both were filled before the day was over.
Please excuse the reference to 3 ES charts on the previous post. There is only 1.
There are several things that can predict the future accurately when it comes to the ES.
#1
S&P PREMIUM
ES PREMIUM
NASDAQ PREMIUM
Notice on 5/22 at the precise moment the spoos hit a new low the SP PREM hit a new high for the day!. That is classic trend reversal with accuracy at almost...