Str-squ

If I'm reading you correctly you are saying that a 'major intraday turning point' is synonymous, though not singularly so, with "strong S/R"? Alright then we have a point to discuss. Parenthetically, I do believe that my experience with the espousers of the CW S/R dogma has taught me sufficiently well that I feel no particular need to discover what the characteristics of all the "strong S/R" entities are as it relates to the NQ/sNDX [= synthetic NDX] pair, which is not to say that you are an espouser of conventional S/R dogma.

So let's just take one such point like the intraday high (IDH). Was it a "strong S/R" area before or after it was 'conceived' or 'birthed', as 'twer' by the market'?

You also seem to be saying that the difference between NQ and sNDX was greatest at, let's say, the IDH. Before we go any further could you explain what the difference is between NDX and your 'synthetic' NDX?

lj

 

IMO about 80% of all daily highs and lows are derivable in advance. I do not trade ES, but I was curious to see if Jack's ideas applied to NQ. The NDX update rate of 15 seconds did not support such an investigation. So I created a reasonably accurate synthetic NDX updating once a second using the top ten components of NDX. Combined with some other tools, this showed that Str-Squ had no value if you already had a clue where major S/R was.

 

Thank you for explaining your sNDX. It makes sense.

I agree that it is possible to predict where the H and L of the day probably will be using various types of information. I have employed variations on a theme of Taylor to do this and you no doubt have your own set of rules. I typically use the prior day’s H and L and as well the overnight H and L [and a few other secret sauce ingredients] but when all is said and done I must always wait and see what the market decides to do. To chase after these lines in the sand can be dangerous to one’s solvency and unlike Hillary I have only two shrivelled cajones [Carville quipped that she had three plump, firm ones, one of which she was willing to donate to poor BO] and really don’t like those extreme skiing/extreme mountain climbing experiences one can experience as one moves towards (or away from) these chart lines.
So I don’t call such things, S or R, strong or weak, but rather points of reference where some days they are like a thick stone wall and other days they are at best less than meaningless.

JH has described what happens at certain types of reversal points and it is not, I believe, what you are describing. Basically what he says is that the smart$ does NOT follow the herd into the reversal - it holds back and leads the move in the opposite direction once the spike bar is completed. So possibly that’s why you’ve not found the tool to be useful.

lj

I tried to find the exact post but it appears to have been deleted. Perhaps someone else has a copy of the post. I have attached a partially-edited version.

 

General S/S comment.

This is a fine tool meaning not medium of coarse).

When a person looks at tooling it is always a good idea to note the context of the tool's utility.

Support (S), Resistance (R) and pivot point system elements have tool utility in the coarse context.

A lot of crude trading is done using these tools. A good measure of tooling application in a trading system is the number of turns done in a day.

Another consideration worth noting at this moment is the effects of noise in the immediate data monitoring context. If it is not considered appropriately, then various shortcuts mentioned in this thread are self defeating.

Finally, there is a relative importance of factors that needs to be considered in non stationary time series.

S/S is not like MACD or STOCH just as they are unlike each other. When you look at the P,V relationship on OTR tic charts, you see that the price trading pair action in itself is significant (five patterns sequence).

Measuring strength comes from at least four dimensions with respect to S/S tooling. This makes it possible to understand the web involved among most fine indicators.

The only thing about S/S that can be related to S, R and pivot elements is premium drift. This envelope is also very remote from the fine action of the market. Just as noise does not affect drift; drift does not affect the fine web of relationships.

Smart money acts at times that have to be understood. The times of smart money acting are very worth delving into and being able to differentiate smart money actions from noise is paramount. It is not simply amplitude modulation detection it is more frequency modulation that is on the table. I squelch noise. The carrier is always drift.

The atmosphere of the fine web of tools shows up as how "smooth" the rhythm of the market is as it unfolds. Quiet times are not the opposite of "strong" times. If you go through a few cycles of rhythm on a fine level using the web of fine indicators, you get to see the behavior of smart money. Smart money comes into play at times of change late in continuation at at the beginning of change. It is not that smart money puts the brakes on but, moreso, that smart money unsmooths the play of things. On DOM there will be, after a while, a shift to higher values at every location; this is not a reversal or "change" it is just a tempering. before this on S/S you see the telltale ruffling of the volatility of the premium a slowing of volatility comes to an end and one side of the carrier gets some vitality. The FM part is more prevalent however and it appears as an excitation of the display. The pattern envelope of the OTR charts spreads as the walls move apart (and become more defined on the DOM).

The four games on DOM and the four possibilities (different than games) are not exclusive to smart money actions. Smart money is acting only in the context of the futures at the beginning of smart money acting.

S/S leads because of smart money. It is a leading non noise disturbance. that takes the advanced intermediate and expert trader to the firing line. The balance of trades on the BBid/BAsk is absent. As other fine tools begin to inform, the solo of the S/S comes to an end since the transition from low volatility to high volatility and excitation is being sustained. Other players who I class as front runner supplement the smart money then replace the smart money which is now in a "hold" strategy and advancing profits.

For trading in this mode, I see a six case sequence and second by second analysis shows is 15 columns of M, 7 columns of A, the usual D's and A's. At 8pt font this is 15 sheets and a price range of about 3 points where the net points per contract is over 11. This is operating at about 10% of sensory capability.

If a person is just relaxed and pulling reversals less frequently, he is only hitting the times when the normal games are very evident on the DOM and the S/S compresion followed by higher volatility exitation allows for ample time to trade at about five times the market capacity as it shows on the 50+ contracts T&S.

MAK has commented on the limits of extraction. At these limits, S/S telegraphs and carving is done by Sentiment during the Change Mode. At advanced intermediate and expert, all the context of medium and more remotely coarse, is far away on the 360 degree horizon distantly surrounding the fine web of indicators.

In sailing, the cat's paw comes towards you and the air speed balls are spinning, all the indicators on the cabin wall in front of the cockpit are twidling in a range. You are looking at the sheet stress shift from one level to another and the greater rise of the quarter wave coming up the hull on the lee side and pushing water away from near the hull. The windward half of the main telltails are moving further out from the nylon for the moment and you shift the helm slowing and further up into the wind by not letting it force itself downwind even one small inch. There is no thinking involved and there is nothing you no longer look at; you are racing for over 200 miles in 2 1/2 days to get a six minute edge if you want to be an expert.

 

This is much appreciated Jack. Thank you for taking your time.

 

once again, brilliantly written.

 

Hi, Todd.

Regarding the INDU components, could it be so that "INDU-components"- "$INDU" create an advance stretch squeeze?

Also: When I calculate the 30 stock prices and I use the DOW divisor, is that on itself sufficient? I believe I read that at times there's an offset between index and the sum of it. Also "splits", "dividends" and such, are they relevant? What's the key word here?

lastly: I assume this, again, exists on every major index? (where as FOREX markets may be different?)

 

As of 11:06 EDT, yoni at -5.15 (indexarb = -1.15). The market is a woman, contrary to the CW.

lj