answer this if you make money

[zentrader]

To identify potential extremes, you could perhaps create an indicator based around the bollinger band concept:

indicator = (close - average ) / standard deviation

If it gets to + or - 2, you either have a very strong trend or potential exhaustion point. You could maybe incorporate some other tools to decide whether to fade the move.

Hope this helps.

 

[aphexcoil]

Damn, I have to give away all my secrets -- oh well.


Here is a 5 day, 5 minute graph of ESU02:

E-mail me for more details on calculating the tangent of the slope of the 75 MA for further information on the statistical implications of this approach (tron@mailzone.com):

 

[Gordon Gekko]

Originally posted by darkhorse
I've been inspired by that worldchampion guy to answer the rest of your question with a half riddle. Think hard about these three concepts and how they relate to trading:

the cheetah
the venture capitalist
the leveraged buyout

for the cheetah, i'm thinking fast.
for the venture capitalist, i'm thinking willing to take risk.
for the leveraged buyout, i looked up leveraged and it said

"borrowing of money to purchase company: the borrowing of money to purchase a company, relying on it to make enough profit to cover the interest payable on the loan"

 

[inandlong]

Wow GG, that was good. Whether or not it is the answer... it cetinly could be.

Be quick to take your profits using as much leverage as you can.

Nice going! I've really only figured out that...

 

[Magna]

Originally posted by aphexcoil
Damn, I have to give away all my secrets -- oh well.

Here is a 5 day, 5 minute graph of ESU02:

E-mail me for more details on calculating the tangent of the slope of the 75 MA for further information on the statistical implications of this approach

aphexcoil,

Not sure what you mean by the above in light of some of your recent posts. On another thread you stated:

Originally posted by aphexcoil on 8/19
I have never traded index futures before.

Yet two days later you're posting a chart and giving advice on the index futures? Later on the same thread you said:

If I have been successful daytrading Microsoft on paper for a few months, then the ES can't be *that* much harder.

And further along the same thread you said

There is no truth in external reality.

When Publias asked you if you have ever actually traded you failed to answer him on your own thread, which leads a reasonable person to only one conclusion. Anyway, just wanted to add a touch of perspective to your "secrets" giveaway.

 

[Hendrix]

Busted

 

[bone]

GG: I don't trade daily bars. So sorry. If I did, I would be more inclined to trade levels. Notice how 8800 is holding like a champ in the Dow?

 

[aphexcoil]

Magna,

I have traded before, but not e-mini futures. However, I have been studying them extensively and just wanted to share a very simple approach that works well on paper.

As for not answering the other person's question, I am sorry -- I must have run by it without seeing it. Yes, I have traded bonds, stocks and options. I have yet to trade futures.

aphie

 

[darkhorse]

Originally posted by Gordon Gekko

for the cheetah, i'm thinking fast.
for the venture capitalist, i'm thinking willing to take risk.
for the leveraged buyout, i looked up leveraged and it said

"borrowing of money to purchase company: the borrowing of money to purchase a company, relying on it to make enough profit to cover the interest payable on the loan"

that's a start....you've broken the surface...now if you Really want it, keep digging

 

[PuffyGums]

Its starting to get really deep in here. If I wanted fortune cookie philosophy, I'd rent a kung fu movie. If I wanted an incomprehensible puzzle, I'd read some Emily Dickinson.