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This is just a test video going over the concept of slope divergence. Ideally, I want to record trades as they happen, but I’ll have to see how that affects my trading.

Trader Gav has an interesting post on evaluating your trading.

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This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com

This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com

I think this idea works with Richard’s VWAP indicator, but it would apply to a moving average as well.

I have a chart setup that is supposed to identify trends. Its a 50 cent Renko chart with a few indicators to help. However, one problem I’ve been having, is quickly recognizing a chop zone.

Here’s the problem and solution. Let’s say you use a 10-period weighted moving average to identify the trend. When its moving up, and your trend indicators are in agreement, you want to be long. That part looks easy after the fact. How can you identify a possible reversal, or chop zone, before the fact? If you can do this correctly, you can stay in your trade longer, having the confidence to exit closer to the end of the move.

One way is to plot a double smoothed TSI using the same period as the moving average. On this chart, the red line determines trend. The double smoothed TSI has less lag, and turns in the opposite direction right as the congestion starts.

If there is a slope divergence between the two, do not initiate new positions. You also want to start looking for an exit when the divergence occurs. I wouldn’t use this to play reversals, because it doesn’t mean it will reverse. It just picks up the change in trend. Flat prices, at the very least, are a momentary change in trend.

If this helps, buy William Blau’s book. There’s a ton of great information, that will have you thinking in new ways.

Edit: I’m not going to paste the other chart, but I put the TSI on the price pane, so I can see the divergence easier. I followed it up with a couple of signal markers that identify when the slopes are congruent. This system will be called “Trading for Monkeys.” Monkey see, Monkey Do. Monkey Did!

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I’m taking a half-day today, since I have errands to run. I finished the morning up 2.75 pts after 2 wins. Not bad considering we were in a 4 pt range for almost all that time. In this video, I talk about trying to keep things simple and focused on the local action, rather than getting too wrapped up in the larger-view. For stocks, the long view was essential, in my opinion. For the index futures, it doesn’t seem to be as big a deal.

Here are the screenshots, since I know the bar colors don’t come out very clearly in the videos:

Not sure if I’ll be posting anything else until late next week. We’ll see!

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I’m going to give my best shot at not paying attention to the markets over the holiday weeks. There’s no sense torturing myself watching low volume/choppy action.

Merry Christmas everyone!

This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com

This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com

I still haven’t been able to resolve the issue with the intra day, EFI indicator. That may actually have been a good thing. I remembered a book I had by William Blau - Momentum, Direction, and Divergence.

Hopefully, one of these rocket scientist will read it, and explain it, better than I can. I’ve been coding some of his ideas into Investor RT, and I lucked into something. If I have the opportunity to trade today, I’m going live with this system (work in progress).

It looks like this Nerd Festival was a success.

EDIT: I’m down 1/2 point. Maybe a huge move comes this afternoon, but I’ll have to miss it. This is like watching paint dry.

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Since those rolling 0.5 to 1.0 hr VWAPs seemed to give decent price bias today, I thought I’d make a paintbar out of it. Now, I can get all those ugly dotted lines off my screen!

… maybe it will be useful in the long run, and maybe not… I’ve got too many things on my screen trying to tell me the trend, etc. Now it’s time to simplify some, I think. Over the weekend I’ll be taking a hard look at what is helping me, and what is just baggage.

[Edit: sorry, on the youtube video it's kinda hard to differentiate the light/dark colors... but I think you can mostly follow along anyway. Here are the last 3 days in compressed 3382 bars, so you can get a feel for how they look with one of the color methods:

You can see that it's not perfect, but it's reasonable in most cases... and I do like how the blue areas tend to crop up when there's choppy action.]

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or not.

Im curretly using Strategy Runner for my data/broker for my paper trading experience.

They are all about “strategies” for the upsell. Think of Richards Boxplay, on crack and willing to draw down to 20-40% for untold profits in the future over time. Yikes.

One was activated. It drew down hundreds of $$$. Ow. So today my “character” didn’t quite loose a ‘level’ but yikes.

Granted this is a field that I look forward to programing in and fleshing out my ‘cohorts’. Just not quite right now. heh.

I am on vacation visiting a friend over here in Paulsbo, and it may be a struggle *cough* to be present tomorrow over at eotpro.com.

Good Trades to All,
and to all a good night!

E.

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Lots of new charts and indicators on display today. I ran out of time to actually discuss my trades, but it’s a similar story to the rest of the week. Made money but not too much. 3 wins and 1 loss today.

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I just had a chance to pull up a chart with the EFI histogram. I thought the MACD might substitute to find the divergences, and use the EFI beads for the signal. With both indicators on the chart, its not even close.

I sent another email to support at Investor RT. When this gets fixed, I’ll resume trading normally. Tomorrow, I’ll what happens if I manually refresh it at key points. When I tried that Monday it was too distracting. If nothing else, I’ll get an early start on the holidays. I doubt CNBC (cock n’ balls channel) will be calling again.

I didn’t lose much money today, but I was getting chopped up. Winner/loser/loser/winner/loser/loser…You get the picture. As Richard might guess, I wasn’t having fun. The divergences on the EFI were money.

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So-so day for me. 4 wins and 1 loss, so I’m pretty happy, but I missed the one good chance I had to make a lot of money.

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This was going to be a morning update, since I should have quit by now. Anyway, I’m down $8 after commissions. Trying to squeeze more out of my trades, I actually ended up with less money. This afternoon, its back to hit and run. By the time I factor in the money lost, and wrestling with the trailing stop losses, I think its just better to grab that first push, and be done with it!

Let’s see what the final hour or two brings. Time to grab some lunch.

Edit: the last hour wasn’t any better, and I finished the day in the red.

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This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com

I feel that I am the DJ…

Can you imagine a trading getup like that? I can just see Richard hoping around to 7 computers, typing on two keyboards, trading like the second coming (no wait he shaved… hrm)

:)
E.

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This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com

Hola from Tacoma Washington all!

My name is Eric and I will be your noob blogpostee here on your minutes of distraction on this site this afternoon, evening, morning, whatever.

Just thought I would start off with some information that is useful with this link JSmineset
Go there, get your Gold on.

And now to me.
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