2 Day ROC

Discussion in 'Technical Analysis' started by skyfisherman, Aug 30, 2004.

  1. yes, thanks for pointing those out

    happens quite often, it really is a useful tool

    can get insight into broader divergences, but its real wheel-house seems to be 4 or 5 days
     
    #11     Sep 29, 2004
  2. here is a chart pertaining to the other setup i mentioned

    it shows the Dow coming into the day, it will take a close above 10195 to maintain upward Mo

    the bias for the day is down, simply meaning i look to be more aggressive on short scalps, but no guarantees

    <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=596871>
     
    #12     Sep 30, 2004
  3. follow-up

    <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=597371>
     
    #13     Sep 30, 2004
  4. Diver

    Diver

    Hi!

    Why "above 10195"?

    Would you please explain more?

    Thank you and Happy trading!
     
    #14     Oct 1, 2004
  5. a nice thing about the 2 per ROC is that its very simple to determine the # that will either maintain the current direction or turn it in the other direction

    Day 1 = today's close
    Day 2 = yesterday's close
    Day 3 = close 2 days ago

    then the # for tomorrow will be,

    Pivot = Day 1 (-) Day3 (+) Day 2


    coming into yesterday, the numbers for the Dow were,

    Day 1 = 10123
    Day 2 = 10065
    Day 3 = 9993

    Pivot = 10123 - 9993 + 10065 = 10195

    the ROC had been up for 4 days, and to maintain the upward momentum it would take a close above 10195

    since the Dow closed below that (10065), the ROC turned down


    after watching it for a while, one can get the "feel" for when the market will really have to "reach" for the Pivot. and by knowing when the momentum is likely to turn, one can anticipate the movement, up or down, for the day

    best to have 2 or 3 days in one direction before expecting the ROC to turn


    there used to be some info about the 2 per ROC on the CME website, but can't seem to find it now, they're always changing things . . .
     
    #15     Oct 1, 2004
  6. Thanks, thinskis !

    This is the kind of insight I was originally hoping for.

    Very helpful...please continue.

    A little more about your thought process in determining a "bias" for the current/next trading day would be great. tia


    skyfisherman
     
    #16     Oct 4, 2004
  7. well, thanks for the encouragement, but everything posted so far is about the process of determining a "bias" for the next day

    am i about to post everything i've learned from years of studying this "noisy" little line? not too likely . . . am i going to post setups in advance? no, this isn't a trading service

    and if i did, it would do you little good, since there would be no effort involved on your part. the best way to learn about the ROC, if you have the interest, is do the calc each night and watch what happens on a daily basis. post charts of what you see setting up. ask questions about "your" interpretation. learning is an active process
     
    #17     Oct 6, 2004
  8. okay, here's an interesting chart

    its the hogs again, the hogs like the ROC

    now what would be the reason for having an upward bias coming into today?

    what was the pivot # we were watching to determine this?

    <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=601674>
     
    #18     Oct 6, 2004
  9. nkhoi

    nkhoi

    <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=601728>

    Pivot for 10/7 = 65.80
    Pivot for 10/6 = 63.83
     
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    #19     Oct 6, 2004
  10. well, i would have never guessed we had such advanced readership . . .

    yes, those are the #s, the one for today and the one for tomorrow

    its a good idea to have some form of daily worksheet, to list for instance

    O, H, L, C

    position of the ROC

    # of days in current direction

    pivot # for tomorrow

    putting things down on paper seems a bit out-dated in this day & age, but the pivot will have more meaning if you do this

    so that is one question answered, now what was the reason for having an upward bias for today?

    open to anyone . . .
     
    #20     Oct 6, 2004