42 replies to this topic

[jjc]

Thanks. I'll have to pick up a copy of the book.

If my theory is correct it would not work as well in a less emotional market. For example with the 10 yr, where the impulse to buy on a rising trend would not be as high; but it would work quite well with gold.

Started to play with it a bit; It is deceptive when looking at a chart because it carries future information back in time 3 bars.

The lead portion of the network requires you to do a comparison with price 3 bars back in time.

Looking at Gold and TLT I do not see much of a difference.

One way to get an approximation of the lead portion of the network before the 3 period delay is to look for a negative three period ROC of the 3 ema.

The whole system together reminds me of PGO; Requires you pick your MALengths correctly for
the harmonics that appear in Price signal. Of course hormonics change as participants change....

[beta]

we are not talking the actual turn (the turn either happens or it does not...as in the past)

we are talking the warning sign provided by price being above the displaced ema...

so based on this:

one would consider selling QQQQ

one would consider selling PANL ..especially when horizontal R was tested on the liftetime

one would consider selling CCJ yesterday...note the approx. $10 move from where price moved above the 3 ma's

there is no optical illusion about the warning that price currently resides above the displaced ema

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I have not explained the entire system here...simply pointing out the price vs. MA history...you can read the book if you want to know the system

Very cool indicator -- I see what you mean. Just back-tested this on several daily charts, and it seems that while not a dispositive signal, it provides a pre-condition (warning) for a possible turn.

In other words, does not mean there will be an immediate turn, but turns do not occur without this condition in place. Also appears to work in reverse (at bottoms). One interesting aspect is how the turns occur at consistent variances (same % above MAs) for each chart, but this % variance also varies for different issues.

Reminds me of how Cadeucus' monthly BB indicator functions, at price extremes. I look forward to reading the book, and learning how this works better. Thank you for sharing this valuable tool, Hiker !

[hiker]

an example of something more than what we have been focusing on re: the displaced ema.

this is an example of using all the MA crossovers and using price above or below all the MA's -

TM weekly chart -

note it is obvious when a trend trader should abandon trading any trend that is in play...