Emini divergence journal

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I do not need to see the validity of your methodology. You have clearly posted your methodology....and proven that this is tradeable, which would be the purpose of you providing audited statements verifying your real time trades.

You see.....many guru's tend to come here and market their wares.....or some papertrader making calls without tradability. The moderators are pretty good about catching this....but this is not the case here.


Thank you again.....I trade the ES but why can't we just the more expensive feed for tracking the SP Big and still trade the ES. I think you suggested this earlier.

Michael B.
 
Quote from MTG:

There is absolutely no need for you to post your statements. If we were paying for your information it would be a different matter, but we are freely sharing ideas here. Anyone asking for that information is being extremely rude and should be ashamed.
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I agree 100%. What you are posting is of considerably more value than an account statement.
 

I agree. You're providing enough information so that anybody who cares can "verify" the results by reviewing the charts.

And if anyone is disappointed in his own results, he's missing the point. Look for ideas, possible directions, tweaks that might make your own system more powerful. Then do your own testing on your instrument of choice. At the beginning, the concept matters more than the details.
 
no_PM,
I agree with all my colleagues above, there's no need to post your account statement. However, I'm certainly keen on knowing what prices you were able to get in and out of trades (which you have been providing all along). This is mainly to compare with my own simulated trading.

You're biggest gift is the sharing of this trading scheme and the concepts behind it. For this, I am most grateful.

In thinking about your trading scheme, I was wondering how you had come to choose the Chaikin oscillator? As far as I know, this indicator is not that prominently used; maybe that's the advantage? Did you feel that you needed an indicator that took into consideration volume? Was that the main motivation? Did you try other indicators which you subsequently rejected?

Richard
 
Hi no_pm.

First I want to say thank you very much for sharing. I hope a lot of good things will come your way...

I have a question about something I dont understand. You use volume together with an oscillator. I understand that you want a divergence between the price and volume when you go short as that shows the volume is drying up and there is no more buyers. Then you want to go in the other direction. Although, when you go long you want a divergence as well and this is what I dont understand. If you have a divergence then you have an increasing volume on your last downspike and therefor an increasing amount of sellers. Dont you want a lack of sellers?

Am I misunderstanding something here.

Thanks for a great journal!

Z.Z.
 
Zizzou,

Tha Ckaiking Oscillator is computed (if I'm correct) as follows:

AccDissi = sum([((2*Close) - (High + Low))/(High-Low)] * Volume);

Chaiking = ema(AccDiss, 3) - ema(AccDiss, 10);

So, if the trend is DOWN, it means more volume is on the downside. Convergence occurs when the (selling) volume dries up (buyers are about to take control), which forms the higher low in Chaikin while you have a lower low in price (i.e prices start to close above average (H + L)/2, which is a bullish sign).
If the trend is UP, when sellers show up, the buying volume dries up (i.e prices start to close bellow the average (H+L)/2, bearish sign), which causes the lower high to form in Chaiking while you get a higher high in price (divergence).

Hope this is not too confusing.
 
no_pm,

Do you ever use discretion on entry in this respect -- today looked like an obvious short soonafter open, the signal bar was the 9:35. Then the 9:40 opened at 990.50. Problem is the hod was 993.00 so in order to place a stop above it would need a 2.75 stop (with entry at open of 9:40 bar). But Keltner width only dictated a 2.25 stop which would have placed it below the hod.

[LATER EDIT: I can see two possible approaches. Either "extend" the stop to 2.75 to accomodate the hod, or offer out higher. I chose the latter, offered at 991.00, price was hit on the 9:41 bar but I wasn't filled.]

[LATER, LATER EDIT: damn, damn, damn.... :) ]
 
Anyone,
Was that a valid signal this morning? I'm not sure if divergences appearing across day boundaries are OK or not. Nice trade 'though.

Richard
 
You made the error of not selling at the market as no_pm does. You silly, silly boy. I should give you a spanking. :)

Hi, No_pm this is a very understadable method keep teaching us.

Quote from Magna:
[LATER, LATER EDIT: damn, damn, damn.... :) ]
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:)
 
Quote from jabbar11:

You made the error of not selling at the market as no_pm does. You silly, silly boy. I should give you a spanking. :)
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No, if I understand correctly you don't sell at market if your entry would force your stop to an untenable location, in this case below the hod.
 
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