Okay, here goes!
for those who are interested incorporating the use of the pair dance:
http://www.elitetrader.com/vb/showthread.php?s=&threadid=97684&perpage=6&pagenumber=1
There are instructing how to put this up in Quotracker.
I do not have the energy now to explain how the dance occurs, but I
can tell you this: you are able to short/buy every wiggle in the market.
you
believe it or you don't, I don't give a sh..
However, It's a tool that will, no doubt, kill you in the beginning. The smarter your ass is, the more you will lose.
The knowledge comes from Jack Hershey, and by this I got inspired to dig deeper into this tool. I have not, at all, fully incorporated the intricacies of this tool, but I'm almost there. big moves are easy to recognize giving the appropriate context. Little moves is where I'm digging right now.
The intricacies of the dance contain the following:
The magnitude of the swing: signal
The stickiness of the swing: Signal
The oscillations of the peaks: signal
The waves which occur after the peak: signal
**No volume supporting: instant signal
The flaws in it: signal
...
It's really that simple: Just go put it up, and analyze. This tool works on every major index. The dance is the same, but the moves may be different
The chart is from the AEX futures, the pair dance is very clear! Here's a spike bar, which are the easiest ones to reverse, because the signal is so huge! Note how there no volume supporting, you could've known only looking at the volume price would go down.
More to follow later on
