ES Journal Archive (2006 - 2008)
- Thread starter Buy1Sell2
- Start date
- Status
Forget me earlier questions since I finaly saw the lines you were referring to. I am only reposting the specific questions I had which I am curious about. Thanks for the time:
This rally smells fishy ... it didn't have the proper volume for this one day rally. Expect it to fill the gap next week.
Ze formula iz little different. Dr Clayburg suggested puting a line through the middle of opening candle on 5 min chart I believe, on your chart the time stamp is around 6.30, though volume indicates that maybe you are in a different time zone, that would be 9.30-9.35 EST. So the vertical would go through 10.30 candle and one would look at the prevailing buy/sell interest above and below DDF (Directional Day Filter) line from 9.30 to 10.30. But in my experience there is no holy grail there, just another indicator, would work 1 day, another day you would give your bucks back to the market. Not bad I suppose for people that haven't got a clue of what's happening.
In the interest of "getting it right" I can offer the following;
Dr. Clayburg suggests you bisect the opening bar or candle. If you are located on the West Coast, your opening bar or candle would be the 6:30am bar or candle. If located on the East Coast, your opening bar or candle would be the 9:30am bar or candle.
At the 60 min mark (or the 90 minute mark depending on the target market) you place a vertical line through that bar or candle. If within this time period most of the price action took place above the line, it is assumed that at the end of the day price will close higher than the open. and vice versa.
What I like about Dr. Clayburg's work is that he suggests the trader test for him/her self to verify his findings. In his own research, he found that the DDF was about 75% accurate for the ES market using a 60 min time frame.
The idea that this works only intermittently is incorrect. But comments to that effect are not uncommon. Most often they originate from folks too damn lazy to do their own testing.
I use the DDF line as my "line in the sand" every trading day. For me, it works quite well.
Good luck
Steve
Dr. Clayburg suggests you bisect the opening bar or candle. If you are located on the West Coast, your opening bar or candle would be the 6:30am bar or candle. If located on the East Coast, your opening bar or candle would be the 9:30am bar or candle.
At the 60 min mark (or the 90 minute mark depending on the target market) you place a vertical line through that bar or candle. If within this time period most of the price action took place above the line, it is assumed that at the end of the day price will close higher than the open. and vice versa.
What I like about Dr. Clayburg's work is that he suggests the trader test for him/her self to verify his findings. In his own research, he found that the DDF was about 75% accurate for the ES market using a 60 min time frame.
The idea that this works only intermittently is incorrect. But comments to that effect are not uncommon. Most often they originate from folks too damn lazy to do their own testing.
I use the DDF line as my "line in the sand" every trading day. For me, it works quite well.
Good luck
Steve
- Status