Big Mike's Trading Blog

Day trading futures, discussing money management and trade management techniques, and more

Thursday's Charts

Here are my 5 minute, 6 range and 4 range charts for today:

I hope you went short at the open and stayed short the entire day! The ECO2 was very informative today, telling you in advance those longs were just fake outs.

The 6 range and 4 range did a great job of bouncing off the DoubleMA setting I am using, which I've now instructed Symmetry to only fire signals in agreement with the DoubleMA (only short below it, only long above it). Sure it's less signals, but also helps avoid chop/conslidation and fake outs.



Mike

8 comments:

Anonymous said...

used ECO2 for the 1st time today...seems like a very nice indicator...like you said it kept you alert from the fake outs! thanks for sharing.

Todd Clark said...

Mike,

Can you comment on how the ECO helped show fake outs today. I don't understand the indicator as well as I should.

TC

Todd Clark said...

Mike,

I watched the 2nd video again and I think I understand but if you want to comment, I'm sure it couldn't hurt to get that reinforcement. Thanks for giving out the code for your MA line. I've got the supertrend code from the ninja forum. Is your paintbar with small stop lines indicator available for download?

TC

Big Mike said...

Hello TC,

Regarding the fake outs: Looking at the my 5 minute chart I posted, look at my time around 11:05am, the first blue bar.

The ECO2 had been in a "long" signal mode for quite some time (since about 10:30am). It had been many bars in other words and yet ECO2 was still below zero.

Once the blue bar appeared, the very next bar ECO2 was already back in a downward trend (purple bar), so even if you had taken the long solely based on bar color (up top) you would have immediately been looking to get out.

The indicator is a candlestick version of the TSI (True Strength Index). It's been enhanced by zoltran (Ninja forums) to make it much easier to visualize what is happening.

You'll see I also added changed the DoubleMA to a 45MA based line, I found it more helpful than a small time frame because I am already using my Trend Bars. It seems to act as a nice support/resistance line, or at least a "permission" line as in "permission to only short" below the line and "permission to only long" above the line.

Last, the color bars (TrendBars, my version of SuperTrend) is what is also drawing the hash mark (small line). That is the stop/reversal marker. Once price *closes* below that line, the trend changes. I also use it as a trailing stop of sorts, but remember price has to close beyond it, not just tap it.

Roonius has posted a new version of SuperTrend just today at the NinjaTrader forums. I recommend checking it out, his version using the ATR setting and settings of 9,2,9 with a EMA average are pretty close to what I have developed. My version is not yet public.

Mike

TC said...

Mike,

Thanks for the reply! I'll look up the new version of supertrend.

On your double ma setting..the original setting was 2 elder and 9 wilder...what is the current setting for those 4 inputs? You mentioned 45ma but I don't know how that fits with the 4 input options. Thanks for all of your sharing.

TC

Big Mike said...

Hi TC,

Correct. I changed it because that low of a setting was not doing me any good, it wasn't benefiting my trades.

The new setting I am trying is a 9 SMA and 45 VMA. I believe it is much more useful and provides something my other indicators weren't.

Mike

Anonymous said...

can you post the symmetry indicator

Big Mike said...

Hello anonymous,

Symmetry is just evaluating other indicators and throwing up arrows and playing the alert file.

Until I release every single one of my custom indicators (some of which I have, some I haven't) it wouldn't do much good.

I will blog more about it in my next post to share additional insight of what it is doing.

Mike

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