Wednesday, July 01, 2009

Great Expectations

This is a screen shot of yesterday's Qs action and I mention it because it clearly shows how the Qs play off the pivots and how the pivot range provides a corral for intraday trades.
Let me just back up a bit and review the major technicals in my daytrading toolbox:
1. NYAD. . . and I have posted on uses of this must-follow indicator.
2. Pivots. . . if I just had the NYAD and the pivots I could trade the Qs intraday just fine.
However, being old and of feeble mind I need all the help I can get. And so I rely on the confirmation of several other technicals to trigger trades. . . these include:
3. The Schwab new daily high count/ lo count rollers. . . which I have also mentioned frequently.
Unique to Schwab, this invaluable gem will never let you enter the wrong side of short term
4. Parabolic SAR. . . I adjust the settings depending on the time frame. . .2,10 or 30 minute, but
I seldom trade against their signals and time and time again they have proven their worth in
calling short term momentum turns.
5. A series of moving averages both on the price chart and the NYAD. Typically I use 3, 7
and 14 SMAs for the Qs based on several TS optimization studies that I posted a few months
That's it in a nutshell and I'll post some interesting (to me) pivot range studies next week to validate my heavy reliance on their behavior.
If, for example, you knew that the Qs would display an R1-S1 range 75% of the time, a R2-S2 range 7% of the time, and a PP-R2 or PP-S2 15% of the time, would that help you tactically approach a day that opened at the PP with the NYAD at R1? It would sure help me.
And, it would also be interesting to monitor how that range behavior varied over time.. that is, are the Qs displaying greater or lesser range activity... which was the point of the pivot band and pivot impulse indicator studies begun some 40 weeks ago and still kicking out directional signals of merit.
For the present time these studies apply only to the Qs although I'll eventually run similar forensics on the rest of my little ETF basket to try and discern any unique patterns there.
As always, this is a work in progress.

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