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Hi Chris,
This is an interesting angle. I have always struggled to get any value
from prem levels (and am usually one of those suckers trying to sell
against trend in the mornings!). It is not clear to me what your Indicator
is showing. Are you in some way taking values say beyond 2 standard
deviations and then applying the paint bar? Could you expand on how you
actually calculate the indicator or maybe post the code? Have you found
the characteristics have change in this bear market?
Many thanks
Philip Nixon
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> From: Chris Lober <cwlo@xxxxxxxxxxxx>
> To: mr_bond@xxxxxx; omega-list@xxxxxxxxxx
> Subject: Re: $PREM as a short term indicator?
> Date: 08 October 1998 02:56
>
>
>
> I use Prem as a s-term indicator for the S+P's under a few situations.
It
> is helpful as a sort of sentiment indicator, and I display it using
> painbars. I basically look at the past couple days, and set the paint
bar
> levels where they will hit maybe 20% of the time. I am not trying to be
> exact as to where I set the levels, since I am only looking at relative
> comparisons rather than absolute. However, I do plan on researching into
> setting these levels more objectively.
>
> As to where I find it useful-
>
> 1. it is a great indicator when the market is doing that slow creep
higher
> after 10:00, and sucking in a lot of people shorting the market. Most
> people look at the slow momentum as the market creeps higher, and look to
> sell, but if the prem bars are showing low prem, with no downside
movement,
> it is saying that the cash market is leading, and to ignore the low
> momentum. This sort of action frequently occurs after 10:30, esp. when
the
> market has been unable to get anything going.
>
> 2.It is also helpful as a general indicator for trend changes.
Frequently,
> if the market is moving down, it will be printing low premium paint bars.
> Once a bottom is formed, if the bounce paints a few bars with high prem,
it
> indicates buying coming in, and can be another confirmation tool.
>
> That's about the only use I've derived from the Premium. I'd be
interested
> to hear any other ideas.
>
> Chris Lober
>
>
>
>
>
>
> >Hi all,
> >
> >Just wondering if anyone out there is using PREM as a short term
> >indicator for daytrading? I'd be interested in hearing your thoughts on
> >interperetation, if you want to share them...
> >
> >Thanx in advance,
> >
> >Dave
> >
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