Friday, June 25, 2010

Is this chart tradable?

SPX 30 Minute Trend Model


While awaiting swirling tropical depressions to stir-up the venomous spewing volcano of oil and God knows what else  into the Gulf and surrounding areas, including but not limited to the entire Southeast coast of our country, ask yourself:  Is this chart tradable?  

I think so and have built a subscription service around similar models.  Yes, this is a particularly effective segment of trend following, but there are enough of these looking charts to more then compensate for the choppy ones.

Yea, I'm allowed to tout my own horn, then again, don't get me started.


A

4 comments:

Anonymous said...

Allan, what's up with the sale of nnvc share by theracore??? What does it mean in the grand scheme? Ahhhh

Anonymous said...

yes youre great

and you have a fine looking chart that shows exactly what a down wave looks like as it moves from the 1131 top to the 50% and 62% fibonacci correction. in what could/should be counted as wave B of a possible/probable ABC going Up... from here,to create the C wave.

BUT IF

the top @1131 was the big correction top (since 1131 is in the price zone for 50% fib correction)

Then

IF this wave down you show here then becomes a wave 1 of 5 of 3 down

then

the wave 2 of 5 of 3 if it goes up now ,as a correcting wave, and looking for a 38% to 62% distance will give us a move to retest the area of S+P 1093/1100/1107

AND FAIL THERE.in that area to start big Wave 3 Down
.........................
But IF
market and price action holds up at 1095-1100 area and

Continues UP through 1110 area to retest the 1120-1130 area,
That would constitute more of a Wave C....
and the ABC count would be dominant...

And this ABC correction
Could go as high as 1170
and
Fail There.

The Big Wave 3 Down could start
Anywhere From

1093 to 1173...1133 is right in the middle

...........................
Conclusion:

It looks like you posted this chart too soon in the day,since the market action brought price above your signal line for a while and right around it at close.
IF monday opens up and breaks thru 1080 and stays up....will your signal system Reverse Long ??


Then after the C wave fails somewhere in the 1120 - 1160 ,1170,1150,1140 area



This steady down wave youve charted here is a snap shot of a downwave that was completely expected.

the last up wave to 1131 can be counted as 'wave A'
this would be wave B
and wave C could be starting now.

Unknown said...

let the algo do the work!

-Mike

Anonymous said...

which my own mental algo just did....
precisely correct.

let it serve as a small contrast to Allan's system tool.