TMF on Chart Here's a screenshot John sent me yesterday of big money selling and price going higher, offering you a great shorting opportunity yesterday on the ER2 around the downtrend resistance line. For those not skilled enough, yet, to read the tape, this tool has very strong potential in filling that gap. Once again, preliminary studies only have been conducted. Get to work guys ! Anek
When the pullback is all red candles you can use the high of the previous candle as minor resistance. So yes, a tick higher than the 1st bullish candle that closes above the previous high would do it- which is basically the 3 bar reversal that Stealth spoke of or the "strong bar" that Anek disucssed. As far as previous resistance becoming support, it is important to be aware of, but I would still want to see confirmation before entering. That's not to say that you couldn't take an entry close to the support level with a tight stop, but the confirmation definitely increases your accuracy. In the end is up to the individual to decide what works best for them. I just see so many instances where people are trying to buy right at what they think is support in a pullback before seeing a bar make a HH, only to have it break slightly lower and stop them out. Then it turns back up and gives confirmation by giving a bar that is HH where they should've entered, only now the stop has scared them away and they miss a nice move. I guess the point is you really don't ever know how far back a pullback is going to go. So you need some sign that shows you strength is returning before you try to jump back in, aka a higher high or break of minor resistance.
Anek, The indicator code you posted is producing errors. May be the if (CCurrentBid) <<< section of code. thanks
Jet, ET Forums is cutting the wide lines of the code once again, sorry for that. Attached please find the ELD interpreted. Once again I remind the readers that the oscillator version has 3 plots and the chart one should have the last two plots commented out. Do not forget that nothing will plot outside of market hours unless you use a very very fast chart on AH and some movement develops, yet its usefulness is not for AH or PRE but RTH. Anek
Another method that can be used with volume is a volume comparison. In this cas I like to use a methode that constantly compares volume to a set amount fo previous bars. the resons being is that you don't always have to have a volume spike to get a nice move as long s that volume "n" is great than volume "n" "x " bars back. Works in any market. <a href="http://allyoucanupload.webshots.com/v/2002298800641045191"><img border="0" src="http://aycu04.webshots.com/image/33243/2002298800641045191_rs.jpg" alt="Free Image Hosting at allyoucanupload.com"/></a>
The 3 bar reversal mentioned by StrealthTrader, is 'Morning Star' and 'Evening Star' formation in candlestick right ? ST also mentions about 3 confirmed swing in the same direction for this signal, I do not understand, any one could offer more explaination ?
jy. Read the journal. It takes two Higher lows or two lower highs to start a trend. The next (third hit on a trend) is the possible start of an entry. Hope this was what you wanted.
Anek, Could you please post a zip with the source code in it.... I'd like to try to convert it (I'm not on TS) - but it appears from your post that the whole thing did not make it in correctly.... Thanks so much!!