No self-respecting chart is complete without a price guestimator. Simple traders use simple moving averages. Exponential traders use exponential moving averages. I myself use the NMA (Non-moving average, amply documented here) because I am a slug. Without attribution explanation or even justification I present the attached guestimator. I have colored it maroon for "meaningless". But every chart needs one. You will note that mine provides precision meaninglessness by using a squarewave representation rather than the customary line.
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Joe Doaks Builds A System For ET
- Thread starter Joe Doaks
- Start date
im pretty sure you could replace your non-moving average by a KAMA, and get the same result.
Quote from Joe Doaks:
"Something Funny Happened on the Way to the Forum": Something for everyone, a comedy tonight!
If one plans to build a system, then all variables used must have a definition. Without defining 'Up' or 'Down' appropriately, how can one ever hope to 'see' the signals provided by the market (or in this case, the one minute NQ Chart)?
A 'funny thing' indeed.
- Spydertrader
Spydertrader is right. We must define up and down for the visually and arithmetically challenged.
Armed as we are with a chart which engenders a sense of understanding without actually conveying any, we may now proceed to develop systems. I use the stoplight representation because purveyors of stoplight systems have attracted the most attention from the SEC. So we ask ourselves, what is the most important attribute of a bar? I ass-sert that it is a close higher, or lower, than that of the preceding bar. This is represented in the stoplight of the attachment. Dissent is encouraged.
Armed as we are with a chart which engenders a sense of understanding without actually conveying any, we may now proceed to develop systems. I use the stoplight representation because purveyors of stoplight systems have attracted the most attention from the SEC. So we ask ourselves, what is the most important attribute of a bar? I ass-sert that it is a close higher, or lower, than that of the preceding bar. This is represented in the stoplight of the attachment. Dissent is encouraged.
Attachments
Quote from Joe Doaks:
But wait! Up or down might be defined as the close higher than the open within the bar, and vice-versa. Hence the attached adjunct system called "GreenBarRedBar", note the differences from higher or lower close.
You now have discussed two different ways for defining 'Up and Down' with respect to Price. Additional (and simple) methods for bar coloration also exist (See chart provided in earlier post). What signals from the market might one 'see' by comparing various methods of coloration - beyond the software defaults or the changes presented in your thread?
- Spydertrader
Mr. Doaks (Hypo) -
For those of us not nearly as visually gifted as you, is there any possibility you could provide charts which are a wee bit larger?
Enjoying your humor (and insights) as always.
Sandy
For those of us not nearly as visually gifted as you, is there any possibility you could provide charts which are a wee bit larger?
Enjoying your humor (and insights) as always.
Sandy
Joe:
I don't use charts except to plot my equity curve. My blackbox system just produces signals that I trade on.
However, I am very interested in these trading charts you guys are producing. My question - Is it a lot more expensive to make a chart that I can read such as that contributed by SpyderTrader as opposed to the teeny-tiny charts you have provided?
Jack
I don't use charts except to plot my equity curve. My blackbox system just produces signals that I trade on.
However, I am very interested in these trading charts you guys are producing. My question - Is it a lot more expensive to make a chart that I can read such as that contributed by SpyderTrader as opposed to the teeny-tiny charts you have provided?
Jack