In recognition of the impact SCT has had on my profitability as a trader, I am pleased to offer this modest extension to the method. I have always had difficulty recognizing A/D, so after much research I developed the algorithm represented by the attachment. It is simply the running sum for each consecutive bar of the magnitude of the downshadow minus the magnitude of the upshadow, colored red when the sum is positive and green when the sum is negative. As you can clearly see, it reasonably represents when limit order traders want to buy from you, which means you should buy, and vice versa. Prosper with this tool with my compliments to Jack and to Spydertrader for their efforts on behalf of all ET. And with apologies to Walter B. Gibson: "Who knows what evil lurks in the hearts of traders? The Shadows know!"
Adjunct to SCT for Visualizing A/D
- Thread starter Joe Doaks
- Start date
Do I congratulate you for realizing a positive impact, or do we offer condolences due to a negative impact?
Anyone who understands the correct usage of the word impact (noun) doesn't accidently omit such modifiers. Anyhow, the attached file may, or may not, apply.Good Trading to you <strike>Hypostomus</strike> Joe, and thanks for sharing your efforts.
- Spydertrader
<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1461599>
I regret that I misdescribed the color coding. I was looking at an older copy of the code from some days ago when I was still struggling with intuitively obvious presentation. It should have read: "colored lime when the sum is positive and red when the sum is negative". Of course no one noticed that, or at least did not comment, presumably because they think NetShadows is a hoax indicator. Out of respect for the convention of the Hershey canon that one neither explains, justifies, nor backtests a method component, I shall not either. Do the work on NetShadows. Like I did on SCT.
Hey <strike>Hypostomus</strike> Joe!
How did the NQ move for you today? Hopefully, the market provided you some hefty profits on such a wide range day as this. Volatility throughout the day sure beats a market flat line.
Good trading to you.
- Spydertrader
<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1462630>
Traded four times. All high probability trades. One long and three shorts, reflecting my bearish bias. Doom. Gloom. Anxiety. Panic. Upsidedownness. Illiquidity. Foreclosure. Margin calls. Humiliation. Despair. Starvation. Sewercide. Pauper's grave. But fortunately there's never any shortage of optimists to take the other side of my trades. I am travelling tomorrow and can't trade. So it will be a wide range day. The fact that limit order traders consistently wanted to sell to you today more than they wanted to buy portends ill for the bulls. If I were you I would get busy developing a Hershey stock method for shorting. I am 100% in cash, physical gold, champagne and bullets. I expect we shall all be eating black swan soon. Things look too rosy. I can't stand to watch. I won't even mention the value of the Confabulator oscillator.
I've been shorting Hershey Stocks since Journal I. The shorts work out the same way as the longs only with Red Volume increasing along with declining Price. Journal III currently has some discussion on shorting. The P-V relationship works in all directions. As I often say, any market, any time frame (provided sufficient liquidity and volatility exist).
Enjoy your travels tomorrow and good trading to you upon your return.
- Spydertrader