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I had made this request in another thread but to no avail so I thought I would ask here.
Most traders tend to swing using the standard method however Identifying the hidden GAPS in the swing has enabled me to do a little better with my trading and ask if the following could be added as maybe a "Show GAPS" like a Show Labels or something (Sorry limited programing skills here)
I know that PAS already has an ABC setup
I would like to add a Point D and then draw a Rectangle if the following occurs
Point D >= Point A for Longs
Point D <= Point A for Shorts
This indicator references what I call "Swing Gaps"
1. From a minor swing gap indicator referencing minor Hidden Swing Gaps that most traders don't pick up on High[2] < Low[0] for Longs and Low[2] > High[0] for Shorts and this is were I got the idea for MAJOR SWING GAPS
2. The addition to the PAS indicator I would like is to identify Longer Term Swing Gaps shown in a few picks below for reference and on a Renko chart for easy explanation and clarity and I have also attached the result of manual identification and direction of the swing Gaps on a larger Timeframe and I ask the question "Would this assist with your trading? "
3. A Scaled Image of all the swing gaps I identified on a larger chart - so the addition to the PAS indicator would probably be a very useful addition to hopefully more than some
Thanks for the indi. I get the session gaps and planning for a fill the gap or gap and go scenario. Your MinorSwingGaps indi shows the gaps intraday and on smaller 1 minute bars there are a ton of them. I also plotted higher time frame gaps. It looks like the 1M goes back and fills the gaps relatively quickly and then leaves some larger gaps that will probably get filled in the next days or week.
You sound like you use this daily and I'm wondering if you can point me to any info that might help how to use this in my daily trading. Rudimentally I get that smaller time frame gaps will usually get filled quickly but is there any type of strategy around that? I couldn't really find much on the futures.io forums except the fill the session gap type of stuff.
@everetts There is no further information however try the indi on a 2000 tick chart like below (can also be use on Volume charts and Range charts ) on CL, GC and Forex the higher the time frame the more important the Hidden Gap becomes
Lower time frames = strength of the market in that direction, You see the larger gaps and as the market slows smaller gaps then form and into a reversal....where does it reverse to ??? you guessed it the start of the first Gap!
On larger time frames
1. No Gaps = Ranging market
2. Gaps = trend or start of one
I am a pretty simple guy and anymore technical than that confuses the crap out of me as for session Gaps and opening gaps its hit or miss for me
this is the reason why it would be great to have the PAS indicator do the work so you get to see the WHOLE (Hidden) picture
Below are the short term swing gap fills for the ES on a 2000 tick chart
Now here is the juice for anyone lurking - the Market Leads and unless you have a crystal ball you never know in which direction so let it lead then enter on the Pull Back but the question always is where would one enter on the pull back? well if you look close enough generally it is to the top of the Pink boxes and the bottom of the blue boxes...But WHY?
So what forms the Box? well lets think about this logically either support or resistance yes?
What we know is that resistance becomes support and vice versa (its trading 101 isn't it?) so here we just identify it
Bottom of blue box is formed by previous resistance (or a High)
price then breaks through that High (Breakout) (resistance and a higher low is formed and a Blue box is created)
The market then pulls back but were too EXACTLY? (educated guess is previous resistance which has now become support.........
Just a little Disclaimer here - use this at your own risk there is more to my method than this simple Support Resistance logic and I may very well start a thread to start giving back to this wonderful community that has helped me is some one would be so kind to assist on the revision of the PAS indicator. (or if it helps I have another ABCD indicator that could be modified just PM me and I will email it to you (if your a programmer)
Hello Traders, a few months ago, a trader that I met through BigMikes turned me on to The Strategy Lab.[URL="http://www.thestrategylab.com"] There is a lot of free material there to study. The more that I read, the more that I liked the concept, so …
My indicator is a similar derivative of this indicator however I do not study Wide Body I am only interested in the "Hidden Gaps and the meaning of them.
I do not rely on indicators, pure price action is all that is needed as this is what tells the story not the indicator.
the study of the hidden gaps leaves glues that to the trained eye can be used to give you the edge.
review the past pictures of what I have posted and without revealing the whole strategy it does no take Einstein to work it out.....Albeit sometimes the simplest methods are often the hardest to understand because we like to over complicate things...
regards
D
P.S. Give me a shout if you are a programmer and can assist in the development of the larger timeframe swing Hidden Gaps
I was wondering if someone can create an indicator, or modify the PAS pro indicator, to display divergence based on the volume of the swings.
So, if the current down swing goes lower than the previous down swing on less volume, it would show divergence.
If the current up swing goes higher than the previous up swing on less volume, it would show divergence.
For hidden divergence, if the current down swing does not reach the low of the previous down swing, and there is higher volume, that would be bullish hidden divergence.
If the current up swing does not reach the high of the previous up swing, and there is higher volume, that would be bearish hidden divergence.
As an added feature, it would be nice if you can define how many swings back you want to look.
For example, if you want to look back 3 swings, you would compare this current swing to that last swing in the same direction to determine divergence or hidden divergence. You would also compare this current swing to the swing in the same direction that happened 2 swings ago, and so on.
I don't know how to code it, but I think what I'm saying is that you would store a variable of the price of the last "x" swings in each direction. That could either be the close, high, or low based on the settings of the indicator. You would also store as a variable the volume of each of those swings.
