Monday, July 13, 2009

Advanced charting

Below is a comparison of 60-minute Renko, Three-Line Break Point and Traditional Bar Charts. This is a little tricky, ergo the "Advanced" label in tonight's Blog title. If these seem too confusing or esoteric, don't worry about it. The significance here is in the nuances that are probably only recognizable by those well steeped in technical analysis. In any case, the charts should be viewed in full screen mode by clicking the image below.

To get things started, note how all three formats nailed today's 21.92 point SPX rally. I'll leave the rest to you're collective vision, observation and ingenuity.



Ubreako said...

did you manage to write your update on NNVC ? read a few postings back that you wanted to put out an update but got distracted with some game ? lol

Allan said...

Ubreako, here is a link that will download an excellent up-to-date summary....I've still not found the time to do my own update:

The Sound Center said...

Allan - how can a 60 minute chart, posted after the close, be said to have 'nailed' it? Or is that a subtle Lenny Dykstra joke?

What say you to a wave count B down of 2 up?

Allan said...

SoundCenter: I was trading the 8-13 minute charts all day and they generated a 4% gain and after the Buy signal in first hour, stayed well above reversal levels all day.

One look at the 60 minute chart, I can see the same thing, once 881 level triggered Long, it stayed Long into the close. Mike commented in a prior blog that is what he traded today.

Look, I'm not making this stuff up and I'm not selling anything. It's cool to be skeptical, but geezez man, the key to the vault is there for the taking.......

The Sound Center said...

My Dear Allan - I was not trying to be cool or skeptical, I simply did not understand you were day trading the signals on a 90% up day.

Congratulations for your patience and discipline, your sharing and caring.

Anonymous said...

so which way is the market trending? You've been saying down down down is coming. Has it come and gone?

Anonymous said...


I am doing OK at trading BGZ/BGU using Renko at 1 pt. Have you set a certain stop rule for setting stops in an account? I cannot stay glued to the charts all day, so I have to set stops to protect risk. I have been setting my stop at $2 below the top box on the chart. In your opinion (or anyone else's) am I setting my stop to far below?

Although I haven't traded it, it seems I get more sensitive as I go lower in points, say 0.5. Although I can't see myself changing my $2 below stops even here. The boxes change rapidly over even a 2 hour period and you can't manually confirm the trend. The software you use seems to have an algorithm that can deduce the buy sell much faster. I hate giving the $2 cushion, but I am not experienced enough to know when to tighten the stop. Any way to manually confirm the trend change sooner?

Thanks for all you do.