Guys -Here's a quick look and a brief description of the SMI. With a little Practice you can use it for spotting trends and reversals. Use it with the paintbars to scalp/trade with the trend up or down. Explanation of SMI: (Quote source unknown) "While similar to the Stochastic Oscillator, the SMI displays where the close is relative to the midpoint of the recent high/low range, as compared to the close relative to the recent high/low with the Stochastic Oscillator. This result is an oscillator that ranges between -100 and +100 and can be a bit less erratic than an equal period Stochastic Oscillator. The oscillator is comprised of two lines, the SMI (green) and the moving average of the SMI (red). When the close is greater than the midpoint of the range, the SMI will be positive. When the close is less than the midpoint of the range, it will be negative. The interpretation of the SMI is virtually identical to that of the Stochastic Oscillator. The most basic pattern to trade from is to buy when the SMI falls below -40 and then returns above it. Sell when the SMI rises above +40 and then falls back below that level. Another trading signal is buy when the SMI rises above the moving average, and sell when the SMI falls below the moving average." and a pic of how I use it: <a href=http://www.freeimagehosting.net/><img src=http://img3.freeimagehosting.net/uploads/010e3b49c9.png border=0 alt="Free Image Hosting"></a> I hope this helps. -GT
I keep getting an error message when i try to save the top pane indicator in QT paint bar editor . Anyone have an idea what i'm doing wrong ?
Ken Wood aka Woodie as much related to all these indicators as I'm to Hitler's invasion of Poland. This old fart/crook named all that other people's work after himself and then just throw those people out of his chatroom. Everybody and their grandma know it. Soon everybody will forget about Donald Lambert and his work developing CCI and will praise Woodie. lol
"The ones you should ignore (for now) because they require greater skill to consistently profit from or simply, the sideway ones: Congestion/Indecision = higher lows, lower highs (Symmetric Triangle formations) Consolidation = horizontal lows/highs" - Anek The way I approach a pennant is by looking at MACD's histogram. There has to be something that points to a direction where price is more likely to go at a time of a breakout. ImO it ain't enough to assume that a pennant forming during an uptrend day will provide a bullish breakout, of course it is logical, but not enough. At the attached charts on left there is 2 minute chart & 1 minute on right. On 2 minute chart we see a histogram below the centreline and what's very important it has put in a bullish pattern where 2nd dip is higher than 1st (similar to price oscillation W). 1 minute chart's histogram provides a trigger point, there was a bearish pattern, but as we got closer to 8.30am data release histogram has put in a bullish pattern (it's below centreline and 2nd dip higher than 1st). And that 2nd higher dip is indeed a trigger, GO LONG That's how I trade pennants. The end. <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1640790>
You have to assing at least one line of code, even if it is as simple as: "if Bar Close>Bar Open set color to Green" to save the paintbar and add more sophisticated studies. Good trading, JJ
J, Here is a more dramatic example as this one makes a trend reversal. Of course, price action also gave it away. Anek
To conclude I don't pay attention to divergence but some seem to play it effectively so more power to them. Anek
The only indicator one needs is price. WHY? All others are irrelevant. The sooner traders learn this the faster they will get close to being successful. Secondary indicators other than volume are nothing but distractions and in this market no one needs distractions. Secondary indicators are calculated off of price. Why use second best when you have the best? PRICE! PRICE! PRICE! JMHO