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the above was taken from spydertraders journal thingy..
first i admit that i think this sct stuff is crap but trying to be objective i will tell you scientifically why.
if you look at what they have posted here see their perfect after the fact drawing of all their little lines? now watch the video of the tick playback, notice that the bars are different.
the compression i know is different cause the chart is compressing to scale as it builds. what i am talking about is you will see that there are open and closes and highs and lows that are different. the data that esignals and other data vendors supply is buffered and typically a best effort.
when relying on highs lows of a bar to draw lines its all going to fail apart that is the fallacy with line drawing methods. you can trust the volume to be transmitted accurately as well this clearly shows a lack of separation from real world trading.
in the real world you would know these things because you would have lost real money trying them. in short you can not trade using anything that is more than a general mean of the data.
The method holds up pretty well even when confronted with missing data or a lagging connection. The data I receive is accurate most of the time and compares very well with those of others. You can compare some charts that people post EOD and see for yourself. On the rare occasions that I received bad volume data I immediately noticed something was off. A quick look at the 2 minute YM always confirms it, apart from leading indicator it's also an excellent backup in case of bad data.
