Zoom of Announcement Price Action ... <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1710687>
Question for Spyder: Way back in April of this year you stated that you "... calculate the offset value using the close of the 15:58 ET bar for the YM and the close of the INDU". So for today, for example, I would determine those numbers to be: 13460 [DTNIQFeed/QT setup] and 13432.77 respectively. In contrast the official CBOT close for the YM is 13431. If you don't mind me asking, do you still use the 15:58 bar for the YM and also, why did you pick that particular bar in the first place? TIA lj
I use the close of the 15:58 YM Bar to coincide with the close of the INDU. I picked this bar time in order to avoid any small changes in Price which might occur on the opening print of the 16:00 YM Bar. Using the same 'time' for each the YM and the INDU closes, reduces the opportunity for obtaining a 'skewed' offset number. - Spydertrader
I don't see anything wrong with these gaussian drawings at all. Just because the first black volume bar is taller than the second doesn't make our INCREASING black annotation wrong. You have to keep things in context when drawing gaussians, you don't know what the previous bars looked like and you also don't know that a large print didn't cause this also a few other things to consider like time of day, economic announcement could have caused a flurry of order during that bar etc... Maybe I'm wrong.
Spyder, In the attached snip, how would you consider the last bar? Would it be making up the retrace of the retrace (ie the retrace back to the orange RTL) or would you consider it as the resumption of the move in the dominant direction? In terms of what must come next after a FTT, we have decreasing volume except price is heading lower in the last bar. EDIT: Others are welcome to provide your opinions.
When I don't see anything at left, I think that there's no reason to assume anything. So if the volume decreases and the price goes up, I simply have a decreasing black (green) section of a gaussian. No bias (also spelled b s ). <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1710828>