Wow what a day in the markets! Got a lot bouncing around in my head after continuing to fine-tune the EE_Trend Indicator. Had a couple of questions on what this is and what it might do for a trader so I thought a good way to explain some of the things it does is to drop an image of today's setups, as they always say "...a picture is worth a thousand words". So I'll try to keep the text short and let the pic do the talking...
So walking through... We started out in a bigger term downtrend with a shorter term (this image) uptrend, running into exhaustion buying (blue dots), telling us uptrend but ending, use reversal entries from level plotter (cyan/red zones). First reversal entry through the zone (EE+EE Diverge on sell volume), followed by two trend following entries (little arrows on chart), profits down to zone, (support zone, red) confirmed with professional buying indication (trade size, cyan dots). Once the exhaustion @ 10 Chicago time pops, looking for reversal again, confirmed with price at zone (red support), amateur selling (trade size yellow dots, FADE those suckers), one last EE divergence (buy volume) to enter LONG now if hungry for more...
There were of course a couple of trend entries late after first exhaust in both directions, (second pivot after exhaustion signal) but these are dangerous since we're getting exhausted... Even so, both of these would have been worth a few points of profit each, not bad if you wanted to squeeze every drop!
Note a few things EminiEdge is highlighting here: There are three things available from the exchange:
2) Trade Size
Are you only using price to trade? Hmmm... What about the other 66.6% of the information available... you ignoring it? Again, Hmmm...
This indicator (and strategies around it) utilize ALL of these to find where the professional and amateurs are trading by trades size, where they are exhausted given the trade volume, then locates entries by price patterns and with specific price trend direction with support and resistance! Since most of this is completely automatic and just shows up on the chart, I'm just watching the chart develop, finding where to stab at an entry. To be honest, this is going better than I expected. Set it and forget it so far, just working out the random "divide by zero" or the errant symbol showing up in an unexpected corner (distracting today, but fixed today :), and since this isn't being adjusted but the algorithms are based on fixed math based on my market theories of the above, there is no curve fitting to worry about.
OK, so I said I would keep it short so that's all. Can't wait to trade tomorrow... Yee Haa!
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