|
PureBytes Links
Trading Reference Links
|
You might also add a one tick chart with the EveryMins and MinsBack set to
30. That will provide a 30 minute distribution of all the ticks for that
period. Infact such a chart is quite illustrative of the general concepts.
If you want to add some color and other indicators such as a moving average
try Clyde's version of the T3Average or an exponential or an adaptive type
if you have one. Attached is another example illustrating the concepts
described below. What you have here is a probability tool based on price
distribution.
If you are plotting a futures that ends at 16:15 and use 15 minute settings
then the PDH will catch the last 15 minutes. If you use any time longer
like 30 minutes then the last 15 won't be included in the PDH.
have fun today!
bobr
----- Original Message -----
From: "BobR" <bobrabcd@xxxxxxxxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Sent: Thursday, January 17, 2002 3:50 AM
Subject: Re: [RT] Fw: Price Distribution Histogram
> There are several things to look for:
> 1. Shape of the distribution, is it "normally distributed" or skewed, i.e.
> does it have a bearish or bullish skew where the long TL is not in the
> center of the H - L but nearer one end of the price bar.
>
> 2. Is the full width half maximum of the distribution wide or narrow, i.e.
> is the distrubution "box" height tall or short. This says something about
> the population of prices and agreement on value. Trending breakouts occur
> easier from narrow distributions. They are a decision point like a
> contracting triangle.
>
> 3. Note how the different periods of the day have different character.
The
> market profilers have been accustomed to using 30 minute profiles and you
> will often see reversals around the top and bottom of the hour in the
> morning where price bounces off of the tails and returns to within the
> distribution boxes. Tails are the low populations above and below the 1
std
> dev distribution box. Wednesday had a trending break in the AM, followed
by
> lots of rotation, followed by a trending break. It would be useful to
keep
> several charts in different time frames running. I would recommend
keeping
> a daily with 390 min for stocks and 405 for futures as well as a 30
minute.
> Scalpers may want to use shorter times like 15 minutes.
>
> 4. Watch for a break of one edge of the distribution box as that may be
the
> ending of rotation and the beginning of trend or price facilitation as it
is
> also called.
>
> 5. The distributions appear to have a fractal nature that occurs when the
> sample time is short like 15 or 30 or 60 minutes or even daily. So during
> the day you may perceive a clue as to the personality for the entire day.
>
> 6. Value area boundaries(top and bottom of the dist box) may become
support
> and resistance later in the day because they were a consensus of value at
> one time and thus were the origin of longs or shorts and thus become
> stoploss and target points for day trades.
>
> 7. One key is to think in terms of rotation, i.e. is price oscillating or
> building along one of the TL's. Is it breaking out and making a run
leaving
> a trail of short TL's in its wake? Watch for a TL to start growing
meaning
> price is consolidating.
>
>
> It would be generous if Gregory or Clyde could code something like the
> rotation and trade facilitation indexes to use with this novel tool.
>
> Hope that helps,
>
> bobr
>
>
>
>
> ----- Original Message -----
> From: "snptrader1" <snptrader1@xxxxxxx>
> To: <realtraders@xxxxxxxxxxxxxxx>
> Sent: Wednesday, January 16, 2002 8:40 PM
> Subject: Re: [RT] Fw: Price Distribution Histogram
>
>
> > Could you explain exactly what it is we should be looking for or how
best
> to
> > use this indicator in RT? (I've never done any market profile work)
> > Thanks-
> > Steve
> > ----- Original Message -----
> > From: "BobR" <bobrabcd@xxxxxxxxxxxxx>
> > To: <realtraders@xxxxxxxxxxxxxxx>
> > Sent: Wednesday, January 16, 2002 8:55 PM
> > Subject: Re: [RT] Fw: Price Distribution Histogram
> >
> >
> > > Just a followup on the GWPD(Gregory Woods Price Distribution)....It
> really
> > > does run on one tick bars. Here is a chart set for 30 minutes
> > distribution
> > > on both of the time inputs. A data window shows the prices of each TL
> and
> > > most important the longest TL in cyan. Note where the short at
> > > 12:26(pacific time) started, within one TL of the longest TL. This is
> > > pretty amazing. Kinda shows there are some people or computers out
> there
> > > that are finely tuned to this stuff. A chart like this in realtime
> should
> > > help reading price distributions for bullishness or bearishness or
> > > consolidations.
> > >
> > >
> > >
> > >
> > > To unsubscribe from this group, send an email to:
> > > realtraders-unsubscribe@xxxxxxxxxxxxxxx
> > >
> > >
> > >
> > > Your use of Yahoo! Groups is subject to
> http://docs.yahoo.com/info/terms/
> > >
> > >
> >
> >
> >
> > To unsubscribe from this group, send an email to:
> > realtraders-unsubscribe@xxxxxxxxxxxxxxx
> >
> >
> >
> > Your use of Yahoo! Groups is subject to
http://docs.yahoo.com/info/terms/
> >
> >
>
>
>
> To unsubscribe from this group, send an email to:
> realtraders-unsubscribe@xxxxxxxxxxxxxxx
>
>
>
> Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/
>
>
To unsubscribe from this group, send an email to:
realtraders-unsubscribe@xxxxxxxxxxxxxxx
Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/
Attachment:
Description: "GWPD30.GIF"
|