Thursday, August 27, 2009

How do they do that?


Above is the 240 minute SPX chart. Note that Blue Wave triggered a Sell soon after the Open today, but that the ATR (navy line) is holding, so far.

But more interesting, how many of you upon looking at the chart above recognized as the Daily chart from March? Here is the Daily SPX:


How do they do that?


A

18 comments:

Anonymous said...

Not sure I follow your Q... do what?

Thanks,
Mike

Allan said...

Create mirror image price patterns on widely different time frames.

Allan said...

ATR has flipped short and will be a confirmed ATR Sell Signal as long as SPX stays under 1020.


A

Anonymous said...

Allan,

Thanks to you, I'm really adding a lot of tools to my trading arsenal.

Question: Are you amalgamating these different methods into your long/short decisions or are you trading each like a separate system?

e.g. I noticed the BWT, ATR, and RENKO are quite close in capturing most of gains from July 18.

Thanks again
Marcello

Anonymous said...

How do they do that?

They cheat.

Anonymous said...

interesting article on the stock market....

http://www.livescience.com/culture/090826-stock-market.html

Allan said...

Marcello:

I have merged BW and ATR into a single robust model. Either one is good stand-alone, together they provide for a little more flexibility in stepped entries and trailing stops.

Anonymous said...

Fractals!!! Markets follow the laws of the universe just like anything else. (I know you know that!)

Great observation Allan.

- C

Anonymous said...

Allan,

At the risk of being greedy......

Could you share your ATR settings so we may mimic you? If they vary what logic do you use to set them?

Tom

Pivot Trend said...

Hi Allan,

I remember you posted a monthly chart with ATR, showing that SPX closing above 1029 at the end of this month (tomorrow) will turn the bearish looking since 2007 into "the most bullish" case. What is your take on that now? SPX is 1030, as I am writing this now.

Allan said...

Re: ATR settings 7.0/2.0

Re: Monthly close above 1029

Ask me again this time next Monday

tapped out said...

This train's next stop, 1050 level!

(word verification "buyin")

ALL ABOARD!

Bernhard said...

hmmz.. i can't believe this trend... pff.

Anonymous said...

Allan, Carl Futia, a well respected contrarian trader has a simple strategy he says confirms that a new bull mkt is underway after a bearish investment crowd like the one in 2008 has become so prominent. "After a bear mkt has has made a drop of 20% or more from it's preceding high point and the bearish crowd has formed look for the S&P 200 day avg to advance 1% from whatever low it makes after the drop which encourged the growth of the crowd". July 27th brought in that 200 day low at 870.57 and a 1% move up to 879.28 will be complete come Monday's close. It would take a 42 point drop over the next 2 trading days from our close today at 1030.98 for that not to happen. This move favors a normal advance of at least65% from its 666 low to the 1100 level or higher. Normal advances can last up to at least 20 months in length. IMO, the bear crowd of 2008 is in cardiac arrest and disintegrating fast.

Anonymous said...

Alan, looking for a little advice if you are willing to help a fellow Michigan home guy. My news letter today said markets continue to trade in false trend, and they may rise through the fall. Safer bet is to short Oil/Metals & buy USD like crazy 78. range. Anythougts, I keep getting stopped out in FAZ and have been killed. Thanks

Anonymous said...

Allan:

saw somewhere that Prechter recommended 100% short this morning. Any take on this?

Dave said...

After marinating on all of this, it's pretty clear to me that we need more cowbell. Have a good weekend Allan.

G said...

Allan,
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