Set-Ups disscused & practised @ Nifty Futures Trading Thread.

[kkseal]

Sunil, also take a look at the Bid-Ask price&vol Can provide clues to the sustainability of the TBQ-TSQ. Btw, have you tried this at S/R regions?

Thanks for the input.

Regards

 

[uasish]

Find some confusion on TBQ & TSQ ,plz let me reiterate once again how i am using.

Looking at the ROC near Support / Resistance gives an idea.
At Opening it gives an idea.
A prolonged phenemenon ,say TBQ < TSQ ,slowly changes to TBQ > TSQ is a reversal signal idea.

Generaly this info. works as CONFIRMATORY only not my main set of logics for a Trade ,but to supplement that.

Lastly these TBQ / TSQ few months ago was different.Why ?

Volume is created by entities having different intention:=

a)an Arbitragger between Cash & Futures may not close his position in the course of day.
b)investors/swing trader never works in a day's horizon.

The Delivery Volume has come down considerably now-a-days.

In this back drop the info. few months before LIVE on Mkt may not match now.
I am a buyer at certain price & the same i becomes a seller at certain Price,in the strict horizon of a Day;previously people with different horizon was also with me ,but they where either on buy or on
sell side of my trade,not on BOTH side of my trade,hence they used to tilt the scale.

 

[orderflow13]

Candle pattern strength is increased when a pattern is a combination of 2 or more patterns - like a Belt Hold also being a Piercing Line (or Dark cloud cover).

Also, candle & chart patterns occur more frequently & have a higher failure rate in small tfs. So trust the ones in 30min or higher (at least look for a confirming pattern in a higher tf)

Regards

Hi kkseal
Thanks for sharing your thoughts.I was searching google for a HEIKIN-ASHI candle. I didnt get much, i mean there was a basic stuff about this candle, how it change the color and all and gives idea of trend at one go, but can any one here shade more light on this candle? cutting the chase down, is it helpful to give idea that after specific formation we r looking for strong trend ? ( as WRB gives a lot of idea of trend )few traders using it for forex trading.Your thoughts or in this case every ones thoughts are appreciated .

 

[vvvv]

HEKIN ASHI

here are five primary signals that identify trends and buying opportunities:

Hollow candles with no lower "shadows" indicate a strong uptrend: let your profits ride!
Hollow candles signify an uptrend: you might want to add to your long position, and exit short positions.
One candle with a small body surrounded by upper and lower shadows indicates a trend change: risk-loving traders might buy or sell here, while others will wait for confirmation before going short or long.
Filled candles indicate a downtrend: you might want to add to your short position, and exit long positions.
Filled candles with no higher shadows identify a strong downtrend: stay short until there's a change in trend.
These signals show that locating trends or opportunities becomes a lot easier with this
system. The trends are not interrupted by false signals as often, and are thus more easily
spotted. Furthermore, opportunities to buy during times of consolidation are also
apparent.
Positive candles (blue) containing no wicks: There is strong uptrend momentum in the session and it will likely continue. Here, the trader will have a hands-off approach to profits while strongly considering adding on to the position.
Positive candles (blue) containing shadows or wicks: Strength continues to support the price action higher. At this point, with upside potential still present, the investor will likely consider the notion of adding to the overall position.
A smaller candle body with longer wicks: Similar to the doji candlestick formation, this candle suggests a near-term turnaround in the overall trend. Signaling indecision, market participants are likely to wait for further directional bias before pushing the market one way or the other. Traders following on the signal will likely prefer confirmation before initiating any positions.
Negative candles (red) containing shadows or wicks: Weakness or negative momentum is supporting the price action lower in the market. As a result, traders will want to begin exiting initial long positions or selling positions at this point.
Negative candles (red) containing no shadows or wicks: Selling momentum is strong and will likely support a move lower in the overall decline. As a result, the trader would do well to add to existing short holdings.
In Heikin ashi if the new candle is not lower than the earlier candle then its bottom.. same for top....The trend is continuing only if the new candle breaks the range of earlier candle....

 

[vvvv]

Different candles in a Heikin-Ashi chart:

1- Bullish candles:

When the market is Bullish, Heikin-Ashi candles have big bodies and long upper shadows but no lower shadow. Look at the big uptrend in the below chart. As you see almost all of the candles have big bodies, long upper shadows and no lower shadow.

2- Bearish candles:

When the market is Bearish, Heikin-Ashi candles have big bodies and long lower shadows but no upper shadow. Look at the big downtrend in the below chart. As you see almost all of the candles have big bodies, long lower shadows and no upper shadow.

3- Reversal candles:

Reversal candles in the Heikin-Ashi charts look like Doji candlesticks. They have no or very small bodies but long upper and lower shadows.

How can you use the Heikin-Ashi chart in your trades?
Have both the candlestick and Heikin-Ashi on your chart and add a 14, 7, 3 Stochastic. Buy when both of the Stochastic fast and slow lines go up from the oversold area and at the same time both the candlestick and Heikin-Ashi charts show reversal signals. Sell when both of the Stochastic fast and slow lines go down from the overbought area and at the same time both the candlestick and Heikin-Ashi charts show reversal signals.

 

[kkseal]

And the calculation ('ha' stands for HaikinAshi)

haClose = (Open + High + Low + Close) /4
haOpen = (haOpen(previous bar) + haClose(previous bar))/2
haHigh = Maximum(High, haOpen)
haLow = Minimum(Low,haOpen)

Once you have the bars you can do pretty much all the stuff on them like you'd do with vintage candles/bars i.e. create price channels, MAs etc.

Regards

 

[kkseal]

This is from one of Alex's posts:-

More about VIX
Since volatility index is six month old in India, here i detailed on graph about correlation of VIX and S&P 500 index.
What we found on chart is that whenever there is vix spiked we got intermediate bottoms.

Absolutely right in your observation. Recently the CBOE VIX spiked to 49 Could you pls check to see if that is the HH of the VIX since Jan?

Regards

 

[vvvv]

AFL FOR HEIKIN - ASHI

HaClose = (O+H+L+C)/4;
HaOpen = AMA( Ref( HaClose, -1 ), 0.5 );
HaHigh = Max( H, Max( HaClose, HaOpen ) );
HaLow = Min( L, Min( HaClose, HaOpen ) );
PlotOHLC(HaOpen,HaHigh,HaLow,HaClose,"HaClose",IIf(HaClose > HaOpen,colorBlue,colorRed),styleCandle);
_N(Title = StrFormat("{{NAME}} - {{INTERVAL}} {{DATE}} Open %g, Hi %g, Lo %g, Close %g (%.1f%%) {{VALUES}}", O, H, L, C, SelectedValue( ROC( C, 1 ) ) ));

 

[orderflow13]

This is from one of Alex's posts:-


Absolutely right in your observation. Recently the CBOE VIX spiked to 49 Could you pls check to see if that is the HH of the VIX since Jan?

Regards

S&P 500 & CBOE VIX both made bottom & top respectively.I wanted to have how vix behaved in 2000-2003 bear market, as all this data is from bull cycle, so for back testing it is not that helpful, I asked to my frnd lets see, if any one has, help will be appreciated.

 

[orderflow13]

In above post
In vix chart, on right edge of chart rsi made a top ( oversold) which is only matchable with rsi of Apr 07 top, but apr 07 was a rsi spike, n now it doesnt seems like a spike, so no clue for me whether its a topout or not.