Tuesday, March 3, 2009

F Series Charts

The 4 screens (F1-F4) in the attachment show the following studies and timeframes:

F1 Screen


The first screen, F1, is a monthly market profile screen and the data can be split and saved by the user. The long term distribution on the right of the screen holds up to two year's worth of data, which is usually more than enough to capture the long term trend and market’s most recent move. This long term distribution can also be colored to show the number of contracts traded per transaction allowing one to differentiate between small speculators and large institutions (can show three different lot sizes in each price/volume bar). We’re confident that our unique “save profile split feature” is not offered by any other vendor and this one feature alone should make it a consideration for a profiler. It will save a trader a lot of analysis time. The monthly timeframe was chosen to make sure the trader was aware of where the market was, has been and is pointing at a quick glance. Now you can easily integrate the day and week into the very long term and know whether you are early or late in a move and adjust your strategy accordingly.

F2 Screen

The second screen, F2, is the standard 30 minute market profile that allows user splits that can also be permanently saved to speed the analysis/setup process. The distribution on the right of the screen is the long term distribution with up to two year's worth of data. This long term distribution can be colorized to show the number of contracts traded per transaction allowing one to differentiate between small speculators and large institutions (can show three different lot sizes in each volume bar). The long term distribution can show actual contract volume or number of trades at a price or price changes (when contract volume isn't available) to accurately depict the distribution for the periods selected. The volume can be shown at the side of the distributions or superimposed over the distributions. We prefer the superimposed feature, because you can get more history on the screens, which helps one maintain the proper perspective.
F3 Screen

The third screen, F3, is a colorized 30 minute bar chart with volume attached. Red and blue show the prices outside of the value area. Yellow represents the value area. Green is the mean of the volume and magenta is the actual high volume number of the period, when different from the mean. The distribution on the right hand of the screen is the volume distribution for the entire day with the same color scheme as the individual bars. This shows the most recent activity and closest relevant price points, where one should expect opposite activity or a pause. This screen keeps you closest to the market profile information that drives the activity of the traditional market profile user.

The fourth screen, F4 (below), is a 5 minute "equivolume" bar chart that shows the volume in that individual bar on the x-axis and price on the y-axis. The chart reveals a bar's volume relative to the volume of the other bars on the screen; the wider the bar the more the volume in that bar. The bar is further coded to show the volume done on the offer (red) and bid (blue) so you can track the side of the market getting the most volume in any bar. This is a quick fix on the current buying and selling. The chart includes a long term distribution on the right side of the screen to help track the high and low volume numbers affecting the trade. At the bottom of the chart is a bar histogram that tracks the cumulative buying and selling for the day allowing one to monitor the cumulative buy and sell pressure in the market. The greater this number the harder it is to reverse a trend.

F4 Screen

In F3 and F4 we have developed a library of proprietary studies for potential trade recognition (location). These indicators capture the trade setup, the phenomena that trigger a trade and the entry. The four indicators show the following:
1. The letters L and H show whether the market is trending or not.
2. The black up and down pointers isolate and show each rotational high or low for one's defined timeframe. This emphasizes rotational highs and lows that are the market's edges so the trader doesn't miss them. Furthermore, it greatly speeds up the analysis and study of history in the data base.
3. The pink/blue squares show potential turning points or edges in the market by measuring the acceleration and deceleration in market activity over the number of price increments selected; the shorter the timeframe the fewer the price increments.
4. The green circle shows when the market is retesting a previous rotational high or low within as many ticks as the user has selected to accommodate a particular market’s personality and timeframe.
Each of these studies can be adjusted to fit the user's timeframe and trade sensitivity, thereby increasing or decreasing the number of trades to be considered. The proprietary studies are real time, allowing you to take a trade in the signal bar, or after the bar closes like all other technical studies. This real time feature improves trade location over time and is usually the only way to get within a tick of the actual high or low of a rotation. These studies are not mathematical as most technical analysis studies are, but measure raw data, or what is actually happening in the market.

1 comment:

  1. Joshua, where are the letters 'L' and 'H' quoted under the F4 screen section? P.

    ReplyDelete