Squat Bars

Discussion in 'Technical Analysis' started by easyrider, Aug 17, 2002.

  1. Just finished reading an article in SFO magazine where the author claims that squat bars when used along with certain wave patterns have an 80% accuracy in predicting reversals. I had never heard of squat bars. You take the number of trades that take place and devide that total into the range of the bar. When that number is lower than the previous two bars you have a "squat bar". They have written software that does this in realtime and are using it all the way down to tick charts. You could do the calculations by hand on daily charts. They claim it works on all time frames. I'm wondering if anybody is familiar with them and has done any backtesting.
     
  2. Do u have a link for the article? What is the full name of SFO magazine? Bill Williams uses Squat bars in his analysis. Check out his books for more info.
     
  3. nitro

    nitro

    This would seem to be datafeed dependent, as I have seen analisys where one data vendor sends a compressed version of the actual number of ticks per "bar," and another would send a different number of ticks per bar.

    That aside, it would be trivial to program...

    nitro
     
  4. Stardust

    SFO is a new magazine call Stock Futures and Options with an emphasis on ssf's. I think they are just now going into monthly publication. They have a website at http://www.sfomag.com where you may be able to get a copy of the article. Its in the August issue. Have some stuff by Williams but dont remember any mention of squat bars. Will go back and check it out. Thx.

    P.s. This guy also swears by the 89 ma which I havent seen many people use. I looked back for aways on some of my charts in different time frames and didnt see anything special about it.
     
  5. nkhoi

    nkhoi Moderator

  6. sounds like they are simply doji candles. basically a squat is a bar with a higher volume than previous bars, but producing a lower price change/range.
     
  7. dis

    dis

    89 being a magic number is BS. A five-point wave looks like a variation of the A&E and 2B patterns. Wave 4 on Figure 5 appears to be misplaced. However, a "squat bar" (congestion) pattern sounds interesting, and may be worth investigating.