Friday, January 29, 2010

Even shorter-term

SPX 5 minute 3-line break with Trend Following Model

 

4 comments:

Anonymous said...

THIS is the chart I want to time my trades off of.


Can you explain that line? Is that an atr line or MA ?
Obviously you cant send out alerts every 5 minutes.
Is this an indicator I can set up on my system ?
thx.

Allan said...

I thought it was pretty cool, too. It's a 3-line break chart with my Trend Following algorithm applied. I don't know yet if it is tradable, it will take a lot more real time observation. The algorithm works well with traditional bar and candlestick charts, even on 5 and 3 minute charts. Does it work as well with 3-line break charts? We'll have to see about that.

Anonymous said...

See,I dont know what you mean by '3-line break'.
Ive never heard of that.

I spent alot of time today watching the S+P on a one minute time frame,sometimes 5 minute,and before the market opened, drew out all the fib retracement points from thursdays wave action and from the ,what I thought was the beginning of the 'wave 5 down'....and the fibs took me to a bottom of 1071-1073...and thats exactly where it went.

but I saw all that by charting it on a one,and five minute time frame.

I dont know if that happens so precisely all the time but today it did.

So I took away from it that its possible to 'time the trigger' on a 1 ,or 5 minute chart.

In forex trading thats standard proceedure.

Seems logical it could be seen with stock and index price points as well.

StanTrenton said...

Allan,
You may find, as I have, that although they appear smooth, these intraday and daily 3-line-break
and Renko charts cannot be traded well.
By setting an arbitrary value by which they must move before a new block appears,
they are always lagging the actual prices.
Additionally, without the candlesticks, the very valuable candelstick patterns cannot be read.
I decided not use them for my trading.
If you find them useful for success in your own trading, please let us know.
In the end, I decided to stick with the traditional candlestick charts.
Stan