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Dear All,
Can any one help me in formulaing the mentioned system for MS ,its
a part of Market timmimg System book.Will apreciate the help forwarded
Market Timing System - TD TJ
This trading model is designed to capture short term opportunities in
the market by identifying the potential price exhaustions levels
that rise when traders concede a losing position in the market by
capitulating at the opening price .Specifically , given a initially
incorrect or ill-timed trading decision coupled with adverse market
psychology and unfavorable news as back drop.
TD TJ requires an opening price that is outside the previous trading
days price range parameter ( ie previous trading days high or days
low). In other words the the opening price has to be required to be
either below the previous days low for an upside move or above the
previous days high for down side move . Further more ,to qualify a
price advance, the high one trading day ago must be greater than or
equal to the low two or three trading days ago.To qualify for the
price decline , the low one trading day ago must be must be less than
or equal to the high two or three trading days ago. Finaly to
identify a low risk buy entry zone , the current trading days opening
price must be at least 38.2% times the previous trading days price
range less than the pervious trading days low price and at the same
time greater than 100 % times the previous days true price range less
than the previous days low price , and the current trading days high
must exceed upside the previous days low by at least 1 price
tick.
Conversely to identify the low risk sell entry zone , the
current trading days opening price must be atleast 38.2% times ,
previous days price range greater than the previous trading days high
and , at the same time , less than 100% times the previous trading
days true price range greater than the previous trading days high
price ,and the current trading days low must exceed dnside the
previous days high by at least one price tick. IN those instances in
which the current price open is less than the previous trading days
low price but not less 38.2% times the previous trading days price
range minus the previous trading days low , then the low risk buy
entry zone is elevated to the previous trading days closing price
plus 1 price tick . Conversely in those instances in which current
price open is greater than the previous trading days high price but
not greater than 38.2% times the previous trading days price range
added to the previous trading days high , then the low risk sell
entry zone is lowered to the previous days closing price minus 1
price tick.
Another variation of TD TJ
enters the market partially at 38.2% level upside if the opening is
below the level described above and enters the market partially at
the 38.2% level dnside if the opening is above that level .These
entries are in addition to the conventional entries that are at the
previous trading days low and prevous trading days high as
previously described.
Add ional qualifiers and
filters can be introduced to prefect this methodology , and we
experimented and improved upon this basic structure by including
other variables . But only the general approach and design of the
technique is described and presented for your revive . IN order to
improve upon this base you may prefer to experiment with TD open (
note below ). Which is a dynamic indicator template utilizing the
general TD TJ method logy but which places it within a much broader
and dynamic trading shell , thereby enabling a user to apply and
exploit unlimited additional qualifiers and filters to arrive at an
improved market timing indicator.
Note- TD open :-Not only must the open be less than the low or
greater than the high "x'( 2 , 3 , 4,5, 6,7or more days trading days
earlier) , but the high must also be greater than or the low less
than a prescribed level such as the previous trading days midpoint ,
average , close, open , and so forth , depending upon whether an
upside or downside move is qualified additionally , a specified %
penetration of a previous trading days or a %ge of a group of days
trading ranges can be added to or substracted to the current days
open previous days close to also perfect the lower is entry level.
Thanks n Regards
sai
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