Then you have reading comprehension issues which fall outside my realm of expertise as both Makosgu and myself (along with many others) have posted extensively on the STR - SQU Signal. - Spydertrader
FWIW, for today, indexarb's FV offset [-4.75] iterated to -8.75 = -9. Right about now watching that YM LM. The boys are finishing that third martini and should be joining us shortly. Which way will it go (heh, heh)? Let's see is it an "ibot unless ftt/fbo" kind o' thing or will we rely on some other logic like intense intuition or better, shock and awe? lj
Spot on spyder! "STR/SQU/OTR= IQ" is the equivalent of "PV/Channels= EQ", in my opinion. To me it's like cheating using this indicator, hence I'm getting used to the PV relation (which was a huge revelation today!) Todd, might you elaborate on this: "Response for the OP, if you calculate your own INDU (using the DOW Divisor and the changes for each stock in the DJIA) you should experience superior performance with respect to STR / SQU. " Especially the stock part. Remember, I'm only seeking for a hint, I'm bound to complex stuff, don't ruin this for me Todd I do not use INDEXARB, because if I would, I would not "get it", so to speak, but.. What's the relevance of the dividends of the DOW stocks to str/squ component. Is it of any significance when trading one of the futures? And lastly: I assume smart money is not limited to the DOW. Are their many more markets where this applies (I'm speeking about all major futures in the world)? Thank you, spodd.
Go to a small pond nearby where you live. Locate a stone at the water's edge. Pick it up, and throw the stone into the pond. Note the concentric circles of wavelets which ultimately reach the shore causing a few grains of sand to wash into the pond. The above anology represents the many lead-lag correlations which exist throughout the financial markets. All one now needs to do is - locate the stone. - Spydertrader
Spydie, I went through all that bullshit when I constructed a real-time synthetic NDX years ago when I was getting heuristic with Jack. The phenomenon you describe only occurs near strong S/R, and therefore is ear-relevant if you know where that S/R IS. But that is too hard for the SCT crowd, because you like voodoo better than science. No offense, of course, voodoo is good for getting laid, but for betting I prefer my math.
I prefer simply to not bet when it comes to trading. Instead, I push buttons in response to the signals provided by the market. - Spydertrader
Spydie, let us spar for a moment for the benefit of the unwashed masses, understanding that we will have a drink afterwards. Your response was typical SCT evasion. I essentially said: "Str-Squ occurs when the index and the future get out of whack at strong S/R. A clear ass-sertion, right or wrong. You chose to ignore what I said and to comment on a trifle.
I apologize, I wasn't aware you were looking for an answer. I had the impression you had already made up your mind. False. Happy now? - Spydertrader
Hypostomus, In the interests of encouraging a meaningful exchange of ideas, as opposed to something else, might I ask what you mean by "strong S/R" and what it is you believe that JH's bullshite signal does at such places? In other words what are your criteria for the former and what is your description of the latter? The reason I ask about support and resistance is that having read the venerable dbphoenix's book [one of the many sources of info on S/R], which is all about macro-S/R for the unwashed masses and having discussed S/R with him, I was, in my mind, left with no answer to the questions, "How do you know what is "strong S/R" and how do you know what is going to happen when you get there?" db, IMO, is an 'edger'. The reason I ask for your description of the signal's fingerprint at areas of support and resistance, is that STR-SQU has different types of signals and these signals occur under different circumstances. This is not some sort of arrogant test but rather stems from my observation of many discussions on ET, that there is very frequently no definition of terms and so most of the blather that goes on in various threads has to do with people arguing, ranting, whining, etc. about things that they have completely different pictures of in their minds. lj
What I observed some years ago before I dismissed it as being of no practical use was that the difference between NQ and a synthetic NDX was greatest at strong S/R, that is at major intraday turning points. I must decline to identify the numerological cause/identity of those points. They are there for the finding. As Jack says, "Do the work!"