Breakout Confirmation?

[steve.k.tang]

Hi Everyone,

I've got an idea and would like to offer it. Here it goes:

List all stocks in the Dow and for each stock, work out the relative position of the last trade vs its high and low. ie. low at 5, high at 10, last at 7.50 - relative positon is 50%. Multiply this number by its weight in the Dow and add up all these numbers to get a number between 0 and 100. Do the same for the index itself and compare the number when trading breakouts. I think this can be useful to help identify false breaks and confirm broader mkt moves.

that's it from me - feel welcome to bury me

 

[vinc]

seems like nobody's inclined to..or the concept is too vague..or
everone's trading their own working strategies

 

[Hombre]

Quote from steve.k.tang:

Hi Everyone,

I've got an idea and would like to offer it. Here it goes:

List all stocks in the Dow and for each stock, work out the relative position of the last trade vs its high and low. ie. low at 5, high at 10, last at 7.50 - relative positon is 50%. Multiply this number by its weight in the Dow and add up all these numbers to get a number between 0 and 100. Do the same for the index itself and compare the number when trading breakouts. I think this can be useful to help identify false breaks and confirm broader mkt moves.

that's it from me - feel welcome to bury me

Might work but it is unnecessarily complicated. Better way is to look at different time frame ot analysed stock 1,5,20 min ,day,week. then compare it to the main idex( indexes)