Alternatives to charts to perceive the market...?

Discussion in 'Technical Analysis' started by Howard, Jul 16, 2017.

  1. I'm with you there. I was getting up at 3:30 every day for a while to work on my first big project. I should warn you once you achieve your first goal you will find lots more ideas to investigate, which will require further learning. :)
     
    #21     Jul 17, 2017
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  2. #22     Jul 17, 2017
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  3. Joe_D

    Joe_D



    Chart = PRICE/fuel movement = the footprint of the HERD =TA

    DSI numbers = temperature of the HERD, also can be charted

    Combine the 2 and you have a solid engine - you will never ever again sell a bottom or buy a top
     
    #23     Jul 18, 2017
  4. wrbtrader

    wrbtrader

    They could also be talking about those that use historical data of bid/ask/Time & Sales information. Some even are graphing tools on the data they're getting from their DOM.
     
    #24     Jul 18, 2017
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  5. MarkBrown

    MarkBrown

    been using music for 20 years, never talked about it cause it was never brought up.
     
    #25     Jul 18, 2017
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  6. Howard

    Howard

    Hi,

    Do you mind telling me what DSI numbers are?

    I'm intrigued.
     
    #26     Jul 19, 2017
  7. Joe_D

    Joe_D


    Yes of course, Howard.

    DSI = daily sentiment index = a measure of temperature of the HERD, i.e. bullish or bearish or neutral. Done by sampling large numbers of individuals. Jake charges $2k per month for this service. The data can be charted nicely.

    Where the DSI is of superb value is anywhere near market tops or bottoms as it represents extreme levels of bullishness or bearishness = contrarian signal that market has reached a dangerous zone and one should be therefore tightening stops or perhaps unloading holdings and going to the sidelines.

    Applying this to current US stock market's S&P500, the bullish sentiment is thru' the roof, which is why contrarians are either already shorting or getting ready to go short.

    DSI has one major drawback, namely a market can get even more extreme than it already is so the timing factor is blunt - so I use it as a readiness factor.
     
    #27     Jul 19, 2017
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  8. Joe_D

    Joe_D

    Howard, sometimes there are newsletters that include the DSI numbers, so thus dispense with the liability of paying 2k/mo. My suggestion is to search out such newsletters and pay their $50/yr.

    Keep your overhead low, low low, get only what is abs. necessary and look for bargains

    In the meantime put a 15x30 emas on your charts and combine with Macd 0-line cross to put some serious cash in the bank from your early days of trading. With just this you will never not milk any trend in existence.
     
    #28     Jul 19, 2017
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  9. colion

    colion

    There is no exact way of doing what you want but you can get a handle on things, particularly if you are not "looking" to far into the future, by using option implied volatility and prices. Here is a link to a quick way to calculate what you want that is usually as good as any: https://www.tastytrade.com/tt/learn/expected-move
     
    #29     Jul 21, 2017
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  10. punisher

    punisher

    not that I disagree with you but consider this: intraday you mostly operate on known information. What is the significance of a chart pattern from yesterday into the future when you don't know the news/information/data that will be known in the future? I'm sure there is a significance but...
     
    #30     Jul 22, 2017