If we think of Dry Up Volume as a confirming indicator for pro-rata volume in the same way we use FRV by End of Day to confirm our Dry Up Volume achieved by 11:00 AM, then we already have our built in risk reduction. Eliminating 'short sale trades' from the discussion for the moment, we see that even if pro-rata volume fails to achieve DU by 11:00, we normally see price improvement. This subsequent price improvement allows for a small profit, or at worst, a wash sale. We would exit here freeing up the funds for another equity with a greater money velocity. I use a 5% stop loss and a 10% target. Using pro-rata volume to enter into a trade improves the the overall performance of the system from a dollar standpoint without increasing the risk / reward ratio. This was the point I attempted to make. While admittedly, I do not have enough pro-rata trades to definitively express the use of pro-rata volume in absolute terms, under current market conditions (and current market conditions may just be the key to determine when and when not to use pro-rata volume) it appears to provide a superior method of entry. Once we enter a period of flat or falling markets, we should have a better grasp of when and when not to use pro-rata volume, as well as, which levels work the best. Due to my three week vacation, I haven't had enough opportunity to observe this theory in real time. Of the few observations I have made on the subject, the results were positive. Significant more study on this theory is required before I can conclude the technique to be valid. As always, look for updates in the future. Thanks for your contributions. - Spydertrader
I've been studying in detail a remote thread that has some extremely interesting measures that we ought to be able to leverage. Before I taint the thread with my inquiries and what I believe I understand about it, I am wondering if anyone can provide context besides the obvious PV, harmonics/fractal pairing body of knowledge (I finally found some use for my EE background). The grey area for the last several weeks has been the code at the bottom of the page (ie. 33/83/62 etc...). It seams that this is related to the equitites matrix (Fractal vs Pace) which I have yet to completely fill in, but these migrations appear jumpy and thus I must be mistaken... Any thoughts? G33M4K the Beginner
This is a continuation of the above related posts... Kind Regards, G33M4K Beginner JC... I will address our issue shortly
Sevens - Ones - Zeros APPX - UTHR - DHI RATE - LCAV - MKTW LSCP - MRVL - MSA VIVO - NAVR - SFCC ISRG - URBN - WFR STZ - SHFL - CREE TKC - RIO - CCJ KSWS - TIBX - LEND CNC - LNCR - CMTL DVA - ELX - JUPM Hotlist RATE JUPM MKTW Watch List GOAM - Du Cycle - Du5 PACT - Du Cycle - Du5 IDSA - Du Cycle - Du5 - Du10 BCSI - Du Cycle - Du5 LWAY - Du Cycle - Du5 - Du10 - DU20 EBKR - Du Cycle ESMC - Du Cycle - Du5 - Du10 SWIR - Du Cycle - Du5 CALM - Du Cycle ALDN - Du Cycle GDP - Du Cycle HRT - Du Cycle - Du5 - Du10 - DU20 HANS - Du Cycle PETD - Du Cycle - Du5 SINA - Du Cycle - Du5 - Du10 - DU20 VSEC - Du Cycle - Du5 - Du10 NTES - Du Cycle GMAI - Du Cycle ANIK - Du Cycle - Du5 SRVZ Wealth Lab Equations - Dry Up ANIK EBKR EVCI GOAM PACT G33M4K Score for the above Stocks ANIK - 2 EBKR - 0 EVCI - 7 GOAM - 2 PACT - 0 Gallas2 "Keep an Eye on These" Stocks CRDN (Attached) Dry Up Stocks with G33M4K Master List Score of Zero SINA PACT BCSI EBKR CALM GMAI (GOAM, ANTP, IDSA, NGPS, LWAY, HRT, VSEC & NVEC have float outside normal parameters) <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=665036>
Glad to see everyone had a safe and happy holiday. It is very cool that you have an EE background like Jack. For pace vs fractal, I have found that the MACD gives me the best clue as to what the dominant fractal at play is. If the lines are divergeing, than the faster fractal is dominant. If they are entwining, then the current fractal is dominant. I also usually find that pace will slowly migrate down to no pace, and then jump to the fastest pace and then slowly migrate down again. All related to volume.
Our system generated one signal today when actual volume for HRT exceeded calculated Dry Up Volume around 11:00 AM. Unfortunately, HRT has a float that falls outside our normal parameters. As a result, we do not take the HRT Trade Signal. With price degradation over yesterday, one might find themselves tempted to short HRT - especially when looking at a long term chart (attached). Keep in mind that float parameters apply to both long and short opportunities. In addition, MACD (+.0124) had already turned into positive territory and The Stochastic Indicator (50.9201) improved off the lows of the morning both by 11:00 AM. Levels for each indicator, in and of themselves, would have precluded any short trade at 11:00 AM. Lastly, average daily volume for HRT remains below our desired levels. I hope you find the above explanation useful. - Spydertrader <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=665157>
Sevens - Ones - Zeros NAVR - SHFL - DVA NGPS - UTHR - ELX VIVO - LEND - DHI IRS - LNCR - KSWS HUM - MRVL - CCJ DECK - URBN - MSA CEDC - JUPM - HOV CNC - RIO NTAP - TIBX TKC - FFIV Hotlist NGPS JUPM FFIV Watch List GOAM - Du Cycle - DU5 PACT - Du Cycle IDSA - Du Cycle - DU5 - DU10 - DU20 BCSI - Du Cycle - DU5 LWAY - Du Cycle - DU5 EBKR - Du Cycle - DU5 - DU10 - DU20 ESMC - Du Cycle - DU5 - DU10 - DU20 ALDN - Du Cycle ULBI - Du Cycle GDP - Du Cycle ENWV - Du Cycle HANS - Du Cycle PETD - Du Cycle - DU5 - DU10 - DU20 SINA - Du Cycle - DU5 - DU10 ASKJ - Du Cycle VSEC - Du Cycle ANIK - Du Cycle SRVZ Wealth Lab Equations - Dry Up ANIK EBKR GOAM PACT G33M4K Score for the above Stocks ANIK - 2 EBKR - 0 GOAM - 2 PACT - 2 Gallas2 "Keep an Eye on These" Stocks ENWV (Attached) Dry Up Stocks with G33M4K Master List Score of Zero ESMC EBKR BCSI ALDN ULBI GDP ASKJ (GOAM, ANTP, IDSA, NGPS, LWAY, HRT, VSEC & NVEC have float outside normal parameters) <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=665687>
http://tinyurl.com/64yn7 The above link contains a News article for ULBI which may or may not affect today's trading. Just keeping everyone informed. - Spydertrader