Here’s an example of a triple-screen entry from this morning on the S&P 500 Futures (@ES):
As always, we see that: (1) there is a clear uptrend on the context chart (upper left). The eotpro Bid/Ask Histogram is green. Then, (2) on the main chart on the right, we have a hook up in the stochastics when the large traders are net positive, and the paintbars are greenish. So we pick an entry from the fine-tuning chart (lower left chart).
This one really shows off the value of the fine-tuning chart, too… since you can see that it’s worthwhile to wait for a green bar to get in around 8:44… this way you don’t have to sit through that retrace!
August 22nd, 2008 at 10:29 am
Richard, there are a couple red bars above the “0″ line on the eotpro Bid/Ask Histogram on the context chart. What does this indicate? Nice trade.
August 22nd, 2008 at 10:36 am
It’s colored based on the trend, rather than the zero line. So, if the indicator thinks the histogram may be starting to trend down, it plots red. If it’s unsure, it picks red or green based on the zero line.
So, sometimes it’ll plot a red bar, and if the histogram doesn’t keep going down, it changes its mind back to green pretty quick.
August 24th, 2008 at 8:43 pm
Hi Richard,
Have you ever looked at three different lengths of Alla’s Average in your Triple Screen Method.
August 25th, 2008 at 10:46 pm
The averages I use will be more or less like allas avg length 2 and 4. I designed these like ema’s so that they are more about the local trend and less about support and resistance. I use the rolling vwap for s/r. You could also use allas average for the overall trend and drop the large-grain chart, maybe.