No problem. For a trend continuation breakdown or breakout to be valid it should ultimately be confirmed by volume. I use the OBV to see that volume is confirming the breakout or breakdown. So as an example see the attached picture. The price ran up to the point where I plotted that thick red line and pulled back. This thick red line now became my point where I was looking for a breakout and trend continuation. You can see at 6:40 that price runs back up to that red line as does OBV but both reverse. Then just before 6:48 you see price and OBV run up again. The price breaks out but the OBV fails to make a higher high. This tells me that the volume is not confirming the breakout. Therefore I wait until the next breakout where you will see the OBV does make a higher high and the price takes off.
Let me know if that clears it up.
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Earlier today you mentioned the "Viper." I actually like the basic concept.... I just don't think I'd pay money for it when I can do something just as good if not better for free !!
You were asking about how to stay on the right side of the market. Well... this morning an anchor chart would have done the job. You may recall that in the Viper trading system they use a trading chart and an anchor that is 1.5X the trading chart. So, here's an idea for you.
Since I trade the YM on a 10 range bar chart. For an anchor I'll use a 15 range bar chart. Now on this chart all you need is Sharky's EcoBars and the candles set to HiLo. Make 'em as fat as you can then scrunch the chart up to about an inch or so and put it at the botttom of your screen. Put the trading chart above it. As far as colors go I would make the up candles an intense blue the fading a darker blue, low momo yellow, down candles red and the fading dark red. Now you got yourself a Viper Trend indicator and it didn't cost you $100.00/month for the rest of your life.
For the trading chart just throw on a 30 HMA Color and some Sharky EcoBars and I think you can trade their system.
I'm going to call it "THE WORM"
Last edited by Jeff Castille; September 4th, 2009 at 06:41 PM.
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Yes, I've looked at all the different pivots and ultimately decided on the classical pivots. One of the reasons that I ended up with the classical pivots was noting that Brett Steenbarger used them if I'm not mistaken. Plus I think that the more people watch a certain thing in the markets.... it sort of becomes a self full filling prophecy.If a whole bunch of people use classical pivots then market will react at that point.