Technical Trading - my 2 cents !!!!

[belflan]

Thanks Glen.

Yes still short. The Rate Cuts obviously did'nt help my positions today, gave back a piece from where I was at the open, as you can imagine, but, still up on the day and more importantly, fundamentally, nothing has changed, yes, we could rally some here, however, it will still take some time for the benefits of these cuts to filter through to the economy. Let's see what happens.

Take it easy,
Frank.

yes, the 3/4 point hasn't had a huge impact still trading below Fri close, if a 3/4point cut doesn't do it, what will!

thanks
glen

Fed Did Right Thing Cutting Rates: Wall Street - General * US * News * Story - MSNBC.com

 

[Grey1]

however, it will still take some time for the benefits of these cuts to filter through to the economy. Let's see what happens.

Take it easy,
Frank.

SPOT ON ,,

Is it not great that DOW rallies 500 points from the low with the 3/4 rate cut and you are still up quite a lot for the day ? of course Bernanke is watching the market and he can at any time surprise the traders but his measures take a longgggggggggg time to get into the economy and as a result the bears have the upper hand now, He should have cut month and month back to be ahead of the market but did not. DO i think he is a fool ? No of course not but like any one else he was not expecting things to unfold the way they have .

The credit crunch is not a US problem only ,, it is a world issue and ECB giving signals today that is not cutting any rates means the temperory relief to day is A SHORTING OPPORTUNITY for the WISE TRADERS.
I AM A BEAR and not a chicken as i have taken a large postion on my swing porfolio which VEGAS AND FIBBO own some of the stocks too
PS:-- VEGAS wil be in seminar too ,, so if you have any question you can ask him if he chooses to answer.


Grey1

 

[Grey1]

Hi Zak,

Please don't get caught up into a number, like '100', it means little, it is about the 'area' first, so could be 94, 96, 102, 112 etc etc and then critically the 'turn' on the 10 minute

Good advise.

Grey1

 

[vegas]

Frank,
A few questions on the intra-day swing trading method using MACCI, if that's OK.

I have so far the following rules (for shorting):
1. First choose a weak stock.
2. Ensure the stock's MACCI is OB on the daily on the night before.
3. On the day, wait for the $INDU MACCI on the 10m chart to be OB. The particular stock should be below the midpoint of the day’s range.
4. Enter when the $INDU MACCI on the 10m chart turns from an OB level. OB level = 100 or thereabout.
5. Get out if the $INDU MACCI on the 10m chart flattens out.

Questions:
1. Are all transactions on close of the 10m bars? Or do you fine tune entry and exit using lower timeframes?
2. Are we not looking at the MACCI of the stock itself at any point?
3. Where is the initial stop. Does it remain there or is it trailed?
4. Finally, I was looking at the chart that belflan posted (see below). Where he says you exited (blue arrow), the $INDU MACCI was still going down on the 10m chart (black arrow). Was the exit based on a lower timeframe?

Many thanks for this thread.
TSS.

Hi TSS,

Okay your questions :

1. I am not concerned with the bars at all. All I am interested is the MACCI's and the price. So once my rules are in place, I will enter/exit etc. Regarding fine tuning. Well, yes, as I mentioned before, the 3 timeframes I use (for Swings), are the 10, 5 and 1 minutes for the INDU MACCI. Now, I would prefer to enter having the 10 'and' the 5 O/B and turning, rather than just the 10, however, it is a 'preferable situation', and not really possible a lot of the time.
2. Well yes, for entry (as you state above), but, also for exit, when the stock is oversold, when shorting.
3. No stop, please see this thread earlier, when I answered this question. But, you can use the ATR, if you wish.
4. Will look at the chart and answer this...later, can't see it at the moment.

Hope this helps,
Frank.

 

[tss42]

Frank,
Much appreciated. The reason I asked about the 10min bar is that I thought you are only interested about what happens to the MACCI at the end of a 10min period. While the 10min bar forms the MACCI may turn up or down and go back and forth, so I thought it's position at the close of the 10min bar is what matters. Is that not the case then, i.e. if while in a short trade the $INDU MACCI turns up while the 10min bar is still forming, would that trigger your exit?

Regarding fine tuning, this is my understanding now (correct me if I am wrong; sorry if I sound thick, I just wish to get this right): ideally we'd like the 10min and 5min in the OB area (if not 1min as well) and turning but that's not always possible, so a short trade can be taken as soon as the 10min MACCI is OB and turning down.

Thanks for clarifying about the stock's MACCI as well. So to short, we need both the 10min $INDU MACCI and the stock's MACCI in the OB area but $INDU 10min MACCI takes the lead and its turn is the trigger, not the stock's MACCI's turn.

Cool!

Great stuff.

 

[vegas]

4. Will look at the chart and answer this...later, can't see it at the moment.

Hope this helps,
Frank.[/QUOTE]


Hi TSS,

Ah, this was my APPL trade. Okay, yes, the 10 min INDU MACCI is flattening out, so I am getting out, at this point. This is not a good sign for me. I have already given back some, so it is time in reading the 10 min to exit. And you can see what happened.

Thanks,
Frank.

 

[tss42]

Could someone please copy and paste the actual text of the 'definitive' Easylanguage MACCI code here so I can program it in eSignal? I will then post it back here and other eSignal users may benefit.

 

[Trader333]

tss42,

For the 10 min Macci, you are not waiting for the bar to form at the end of a 10 min interval, ie. it is continuous so the OB /OS condition can occur at any time.



Paul

 

[vegas]

Frank,
Much appreciated. The reason I asked about the 10min bar is that I thought you are only interested about what happens to the MACCI at the end of a 10min period. While the 10min bar forms the MACCI may turn up or down and go back and forth, so I thought it's position at the close of the 10min bar is what matters. Is that not the case then, i.e. if while in a short trade the $INDU MACCI turns up while the 10min bar is still forming, would that trigger your exit?

Regarding fine tuning, this is my understanding now (correct me if I am wrong; sorry if I sound thick, I just wish to get this right): ideally we'd like the 10min and 5min in the OB area (if not 1min as well) and turning but that's not always possible, so a short trade can be taken as soon as the 10min MACCI is OB and turning down.

Thanks for clarifying about the stock's MACCI as well. So to short, we need both the 10min $INDU MACCI and the stock's MACCI in the OB area but $INDU 10min MACCI takes the lead and its turn is the trigger, not the stock's MACCI's turn.

Cool!

Great stuff.

Hi TSS,

Paul above answers your first question. You must ignore bars totally.

Yes, the second paragraph is fine.

Third paragraph. 10min $INDU MACCI and the stock's 'Daily' MACCI in the O/B area. The Stocks MACCI 'identifies' or 'alerts' you to the trade, then the 10min $INDU MACCI is used for the timing of your 'entry'.

Thanks,
Frank.

 

[iq200]

Frank,
How then do you use the 1 and 5 minute timeframes for the swing trade? Do you wait for a pb on the 1 or 5 min before entering or do do you use them for something else?
Cheers,
Imran

 

[Ultramarine]

tss42,

For the 10 min Macci, you are not waiting for the bar to form at the end of a 10 min interval, ie. it is continuous so the OB /OS condition can occur at any time.



Paul

Paul,

By your reply do you mean that the 10 min is updated on a tick by tick basis? If so, what represents a turning down of the MACCI - if that is what one is looking for - successive ticks may give opposite signals. Somehow a decision has to be made - but on what basis? In my experience, as the time frame shrinks so the volatility of the MACCI plot increases, so are the 5 and 1 min also to be updated at the same frequency? Maybe my coding was wrong but sometimes the direction of the 1min was changing so rapidly as to be unusable as a decision aid.

Thanks for shedding any light on this for me.

Al

 

[tss42]

tss42,

For the 10 min Macci, you are not waiting for the bar to form at the end of a 10 min interval, ie. it is continuous so the OB /OS condition can occur at any time.

Paul

Sorry Paul, I am still slightly confused.

Once the $INDU 10min MACCI is OB, we are waiting for it to turn down to pin-point our entry. Now because it is continuous, it can turn down for a second and then again turn up the next second. If we base our entry on that momentary turn down from the OB level, then we may have entered too early.

Same question on the exit. Once in a trade, if the $INDU 10min MACCI turns up momentarily, do we immediately exit? What if it turns back down the next second?

That's why I was thinking of looking at the $INDU MACCI at specific time intervals, like taking a snapshot and deciding where it is now.

Sorry if this is totally obvious to everyone else. Feel free to PM me if I am clogging up this thread with my stupid questions.

 

[tss42]

I see Ultramarine has beaten me to it

 

[iq200]

Hi,
I would appreciate if anyone who has written down the exact rules (setup, entry and exit) for the scalping strategy version could post them so people who are a bit confused (such as myself!) could gain more of an insight!
Regards,
Imran

 

[tss42]

Imran
I will write them down as soon as I am clear of the last bits.

 

[iq200]

Thanks tss. You requested the TS8 code for the MACCI. Here it is below. The first bit of code is for the indicator. The second is for the CCI function.
Cheers,
Imran

/////////////////////////////////////////////////////////////
{ Code Commodity Channel Index Indicator}
inputs:
Length( 6),
SmoothingLength(5),
OverSold( -100 ),
OverBought( 100 ),
OverSColor( Cyan ),
OverBColor( Red ) ;

variables:
CCIValue( 0 ) ;

CCIValue = CCI( Length ) ;

Plot1( Average(CCIValue, SmoothingLength), "CCI" ) ;
Plot2( OverBought, "OverBot" ) ;
Plot3( OverSold, "OverSld" ) ;



/////////////////////////////////////////////////////////////
{ Code Commodity Channel Index function CCI}

inputs:
Length( numericsimple ) ; { will get divide-by-zero error if Length = 0 }

variables:
Mean( 0 ),
AvgDev( 0 ),
Counter( 0 ) ;

Mean = Average( H + L + C, Length ) ; { don't have to divide H+L+C by 3, cancels out }
AvgDev = 0 ;
for Counter = 0 to Length - 1
begin
AvgDev = AvgDev + AbsValue( ( H + L + C )[Counter] - Mean ) ;
end ;
AvgDev = AvgDev / Length ;

if AvgDev = 0 then
CCI = 0
else
CCI = ( H + L + C - Mean ) / ( .015 * AvgDev ) ;

 

[trendie]

is it today? 12-noon.
whats the room called?

EDIT: tomorrow, at 12:30pm. bloody indicators!

 

[Trader333]

There are a few questions here that will be better answered in the forum on Thursday in my view.


Paul

 

[tss42]

Unfortunately I cannot attend the forum tomorrow (on business travel), so I guess I'll talk to one of you guys later.

Have a great time tomorrow. Give the mighty G1 my respect.

 

[Glenn]

Thanks tss. You requested the TS8 code for the MACCI. Here it is below. The first bit of code is for the indicator. The second is for the CCI function.
Cheers,
Imran

/////////////////////////////////////////////////////////////
{ Code Commodity Channel Index Indicator}
inputs:
Length( 6),
SmoothingLength(5),
OverSold( -100 ),
OverBought( 100 ),
OverSColor( Cyan ),
OverBColor( Red ) ;

variables:
CCIValue( 0 ) ;

CCIValue = CCI( Length ) ;

Plot1( Average(CCIValue, SmoothingLength), "CCI" ) ;
Plot2( OverBought, "OverBot" ) ;
Plot3( OverSold, "OverSld" ) ;



/////////////////////////////////////////////////////////////
{ Code Commodity Channel Index function CCI}

inputs:
Length( numericsimple ) ; { will get divide-by-zero error if Length = 0 }

variables:
Mean( 0 ),
AvgDev( 0 ),
Counter( 0 ) ;

Mean = Average( H + L + C, Length ) ; { don't have to divide H+L+C by 3, cancels out }
AvgDev = 0 ;
for Counter = 0 to Length - 1
begin
AvgDev = AvgDev + AbsValue( ( H + L + C )[Counter] - Mean ) ;
end ;
AvgDev = AvgDev / Length ;

if AvgDev = 0 then
CCI = 0
else
CCI = ( H + L + C - Mean ) / ( .015 * AvgDev ) ;

This is only the code for the CCI.
The Macci is a 5 period SMA of the CCI.
Glenn