2 Day ROC

Quote from gorgonzola:

Have you tried using this method on weekly charts? i.e. 2-week ROC? I'd be interested to know if similar results could be obtained on that time frame... I may do some testing on my own if I have time and if I come up with anything, I'll let you know.
More...

No, trading off weekly chart is not really my cup of tea, but I'm sure in terms of T/A, it should still work, just without high precision. Your 2 week ROC will be considered OT here, as I can't even talk about 5 min ROC (2)... yes, do your own research, it's not hard to understand. Though I don't have much experience with this indicator, it's not hard for me to pick it up and merge it with my own methods. Maybe I'm missing some important info... as far as I concern, it works in the area I want to improve, that's good enough for me.
 
for those of you studying this tool, there have been some very nice examples of late

the Euro, has a nice "short term" divergence and the market breaks down

the Can$, makes new Mo lows and the market goes lower

and of course, the Hogs, they make new Mo lows and the market goes lower

pull up the charts, nice stuff
 
one of the things mentioned in the beginning was that the ROC is not suitable for all environments. in low volatility environments its best to disregard the ROC and use a range expansion approach

many ways to quantify low volatility, but one of the simplest is to just keep track of the daily range ala Toby Crabel

here on the hogs, we had two NR7 days in a row followed by another narrow range day. the ROC hints to the downside, but its wrong. using the range expansion approach, when the hogs took out the previous day's high (and the ROC pivot) heading into the last hour, best to go with it

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=655941>
 

Attachments

thinskis,

I just wanted to say thank you for your anaylsis. I am sure many on the baord find it as useful as I do.

Regards

-- James
 
Hey:
I think newbies (and not so newbies) should print out this thread and use it for future study of the ROC. In my experience it is rare that we get commentary of this quality here on ET. Nothing beats experience. Good luck, Lefty
 
Lefty,

I'd like to second what you said.

I'm a newbie and I have in fact copied all of Thinskis posts, and they have been very insightful. Here's hoping he continues to post a chart now and then.

Gary
 
well gents . . .

thank you for the kind thoughts, glad to see that the efforts here are of benefit to someone . . .

this (the ROC) is not going to be a fit for everyone, its a short term tool, so it depends on the trading style. but one should know pretty quick if its a fit or not

overall, i think most people look at too many things (indicators) and clutter their charts up with stuff that only distracts from what is truly important -- what the price is doing right now. of course, i like uncluttered charts and simple ideas, so take that for what its worth . . .

best wishes for the new year. and consider it a gift, a gift that an unbelieveable number of our fellow travelers of just a few days ago will not share. let us be thankful for it
 
Hello Thinskis,

Thanks for the chart.

Now, if I take your post of 10/07/04, and turn things around a bit:

There's a nice MO high on the 27th (that's higher than a number of previous ROC highs) and price followed. Then, the next ROC high on the 31st is lower than the previous, but prices have continued up. A nice 4 day divergence, right in the "Wheel-house". Did the two day ROC lead here or what?

(I've probably missed something big here.)

Thanks for your great informative posts.

Gary
 
I will have to say this ROC (2) thingy is one of the most valuable tools I've learned last year. Thanks.

Does this Canadian dollar chart also mean it will bounce a little bit from here for 1 to 2 days, then more downside to come?
 
You must log in or register to reply here.
Back
Top