Is there a Naked POC for Tick Bars? An Effective Methodology
I am looking for a POC indicator that will plot NAKED POCs and POCs directly on Tick bars. Any suggestions or modifications to an existing POC indicator would be greatly appreciated. FYI, ALTOGomMP plots an accurate POC on a tick bar but not a NAKED POC. Also, the SimplePOC indicator does not plot a POC accurately.
Considering tick charts represent actual trades they tend to best represent what I call "tick bar based balanced and imbalanced order flow". I am convinced that when there are no naked POCs on a tick based chart that this indicates a solid balanced price structure (aka a trend) worth staying with. For example, when we analyze a chart like the one I posted we take for granted that a solid trend continues to trend because it stays in balance. That is, it does not make quick jumps ahead of itself without small retracements (aka corrections) as a balancing effort to substantiate a trend continuation. In fact, when price does jump ahead of itself it tends to leave areas of imbalance (aka gaps indicated by bar based NAKED POCs) that price will likely retrace to sooner than later. Another example is range type price action bouncing between "tick bar based NAKED POCs".
Thus the reason for my request. Is there an indicator that can plot POCs and NAKED POCs on a per bar basis for tick charts?
Hopefully, someone would be kind enough to provide a solution to this powerful trading method. Thank you!
Last edited by tdaman; August 19th, 2016 at 02:49 PM.
While I am reasonably good at programming, I am not so good at certain terms used here. So the questions are:
1. What are POC and Naked POC?
2. In plain English, how can we identify them?
3. And how can we use these powerful indicator?
4. You indicated ALTOGomMP - What is this and where can I see a running one?
If you can provide these details, I will be glad to implement this logic.
The following user says Thank You to fskhan for this post:
Both GomUA and SimplePOC indicators do not plot BarPOC the way I need (see attached permalink #1).
This is what I am looking for...
1). An indicator like ALTOGomMP that plots correct BarPOCs on Tick Charts (see my initial request, permalink #1)
2). Leaves closed BarPOCs in place so to "Track Finished Areas of Business / S/R Areas" (see attached chart)
3). All that is needed is a RAYLINE to indicate a NakedBarPOC. This Rayline goes from Dashed when Naked, then changes to something else (thinner line?) when touched, then cuts off or ends where crossed. I've manually drawn all this (missed a few) in the attached chart.
Please see attached example of what I am referring to. Thank you!
Last edited by tdaman; August 23rd, 2016 at 01:32 AM.
Can GomUA NakedBarPOCs be Corrected to Look Like ALTOGomMP BarPOCs on Tick Chart Bars
I've attached a more comprehensive chart of what might be a simple modification to the existing GomUA indicator. I'm open to any indicator that can plot a BarPOC (add a rayline) like ALTOGomMP does on Tick Charts. Perhaps a simple trick for Gomi?
On such a small timeframe there is so much wiggling around it will take out much of the naked VPOC IMHO. (Refer to enlarged text above) Balanced price structure is a ranging market a trending market is finding/seeking out new areas to balance in. Trending and balance are different concepts. But on a tiny timeframe it can seem like it's trending when it's just moving to a side of balance. I believe naked VPOC of custom profiles drawn over days is a much higher percentage trade.
With due respect please be careful of what you are convinced of because from where I sit you have your concepts wrong.
That being said here is Rancho's intraday per bar profiles in NT8 with naked VPOCs on a tiny timeframe,1597 tick bars.
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We must be like the fountain or spring that is continually emptying itself of all that it has and is continually being refilled from an invisible source
Buy Low And Sell High (read left to right or right to left....lol)
Thanks for the response and the lead to Rancho Dinero. I still would like to see something on a simpler level, specifical, a POC only that plots naked POCs, that when touched changes as mentioned, and when crossed... etc. Perhaps this is something I should have posted in the "Get Indictor Made for Free" section? My analysis has actually evolved into a very compelling methodology that when combined with a few other indicators, including the "Final Alg" Volume Profile on a 405 min RTH chart, actually works quite well. As an intraday scalper, my primary goal is simply to look for "NakedBarPOCs", "TouchedBarPOCs" and "ClosedBarPOCs" along with other indicators to further identify strong confluent areas to trade between. Perhaps just looking at "NakedBarPOCs" alone can appear confusing which is not how I trade.
Perhaps I didnt make myself clear and I apologize. Much of the evidence supporting my methodology using tick charts, large and small, dissappears with all the current indicators that plot "BarPOCs". One example, I've manually plotted on my latest chart a "TouchedNakedBarPOC". It is tested a few times before it is crossed and then ends. It intends to not dissappear but leaves clear evidence as a prior area of S/R. Therefore, this compels me to believe that wether you're a quick scalper or an intraday trader looking for a pullback, there is useful evidence even on a 512 or a 1350 tick chart that we still need to see.
This is interesting but would à POC or naked POC be the same on a 2 tick bar than on a 10 tick bar? Likely not. This therefore is dependent on the bar periodicity unlike a day VPOC, LVN and HVN as pointed out above. I would also argue that imbalances "work", i.e, generate a move in one direction, not so much because they are imbalances, i.e more aggressiveness on one direction than the other, but because the liquidity is in shorter supply, i.e, Limit orders, i.e, non agressive opposite side (they want to execute at a precise level as opposed to there and then), and do not absorb the Market orders which creates bid/ask moves. An imbalance between Market and Limit orders that serve them makes more logical sense, not imbalance between 2 different prices (bid/ask) which are served by Limit orders. Even if we ignore what I am pointing out here, and stick to the original idea that imbalances in market orders indicate something, we could even reflect further and question the fact than Market orders and therefore any imbalance between bid/ask market is not even a gage of aggressiveness, until we are sure than these market orders are actual agressive orders with intention, momentum and follow up, are just that, and not just orders to exit existing positions, which would of course look exactly the same but would not have the same effect as the markets keeps ticking. Food for thought, very interesting to exchange ideas on those subjects.