ES Journal Archive (2006 - 2008)

Status
Not open for further replies.
To look into this LBR rule with the low ADX on 120 min, i did a 120 chart with ADX and marked the areas with low ADX, cause nothing is perfect, this is sometimes more or less remarkable, but quite often after such a condition follows a larger move as you can see on the chart
 
I did the same thing with the ADX line and on Tradestation drew a horizontal line across at 5 or 10. When one of the DMI lines (DMI+ or DMI-) dips below that, it gives an early indication that the other DMI line is overdone. Also when the ADX line hits that low it denotes a consolidation which I confirm with Bollinger Bands and trade the breakout.
 
Pure from Volatility it can fall like a stone too, but from the pattern i see, i would say, there was already a headfake for the shorts and we can see the 4 th(?) attempt to break to the upside. On Dacharts I found the ro4 pattern, means that the 4th attempt is mostly succesfull in breaking out, didn`t look too much in this kind of counts till now, but of interest to look into deeper...

http://www.dacharts.org/archives/Pattern_Recognition/google_Rule_of_4_and_3_humps/

http://www.dacharts.org/archives/Pattern_Recognition/google_Rule_of_4_and_3_humps/rule_of_4.htm

....when we're looking for long entry on that pattern
(11:20 AM) google_2: we're looking for the 4 th time this line is breached
(11:20 AM) google_2: and that's why it's called ro4
(11:20 AM) google_2: it happens all the time
(11:21 AM) google_2: and one of the patterns that provides consistent results
(11:21 AM) google_2: r04 is for long entries and not short.....
 
I look at the attached chart and see a move up tomorrow to 52 week high and continue pumping it up until 1330+ as a logical and a sexy thing to do and only then a pullback to 1290-1300 perhaps.
 

Attachments

B1S2 and Michael,

apart from 20 MA which I use as a lagging indicator, I have been using 12 and 4 MA crossovers, they are, IMO, one of the best indicators for short term trading and from what I can see directional swing trading as well. A buy signal on 12 x 4 from above down and Sell signal on 12 x 4 from below to above. I have used it for scalping since the beginning, in my experiences this technique comes very close to a leading indicator, better than RSI, MACD, Stoch for sure as far as timing is concerned. Seems to work on most time frames. It shows an up move for tomorrow on 15 and 60 min charts at the moment, will check in the morning.
 
it can never be a leading indicator as it has to have time to average closing ticks.......going back 12 and 4......always lagging until one event occurs...........leading can't happen.......with ma's....but close ain't all bad.........choppy days and narrow whipsaws will make you unhappy .......if you try to apply it as you do on the normal range days up and down........
 
Quote from porgie:

it can never be a leading indicator as it has to have time to average closing ticks.......going back 12 and 4......always lagging until one event occurs...........leading can't happen.......with ma's....but close ain't all bad.........choppy days and narrow whipsaws will make you unhappy .......if you try to apply it as you do on the normal range days up and down........
More...

IMO it is the best MA crossover combination and comes CLOSE to a leading indicator, by that I mean it actually front runs MACD, RSI, STOCH, etc. If you know of something better George, maybe you could give us some advice as well.
 

Attachments

Status
Not open for further replies.
Back
Top