10 replies to this topic

[spielchekr]

I'm afraid that manually transposing this stuff to a live stockcharts chart will be too time consuming. I'll post some hard copy updates from time to time instead.

As you might already know from previous posts, I've chosen the 20ma flatline price to be the benchmark for this chart tool. I want to know when distributed money is interested in accumulating again. A lateral move from 11/15 to 11/16 could hold some promise.

To interpret the chart below...

The wicks represent the amount of distribution on 11/01/07, from the 20ma flatline price of that day to the close of that day. Once price begins to penetrate those wicks, it could be a clue that that distributed portion is accumulating again.

The bodies represent additional cumulative distribution from the subsequent daily 20ma flatline prices. Body size and color will fluctuate as this progresses. Once I start putting white bodies in there, the opening prices will be from the bottom point of of the distribution wicks that you see currently.

Candle placements (that is, the closes) represent the required fractal for maintaining today's slope.

Look at the prices I've got for tomorrow. The close price (bottom of body) represents the price required to keep the 20ma from steepening. The thigh (top of wick ) represents the price required to flatten the 20ma. The open price (top of body) represents the price required to begin testing the distrubution range for reaccumulation.

I think this may actually be simpler to follow than a chart with squiggles. Maybe it gives a better picture of what I'm trying to convey.

[relax]

once again an interesting chart, which is much more user-friendly Thanks!

[nicolasillo]

very cool stuff. thanks! Although, I am not so sure I understood it 100% ;p

Edited by nicolasillo, 06 November 2007 - 04:27 AM.

[Doug]

Spielchekr, What accounts for the large drop at the 9th red candle?

Regards,

[underabigw]

Speilchekr, Thanks for keeping us posted on your work. Appreciate the detailed explanation. UBW

[spielchekr]

much more user-friendly

It's more maker friendly, too.

I am not so sure I understood it 100%

I'm just projecting the most current day's 20ma slope and showing the future prices required to maintain that exact slope (bottoms of candles), prices to test the 11/1 distribution (upper body limits) and prices to flatten and perhaps prepare to go slope-positive (tops of wicks). No way do I expect price to follow exactly along. In fact, it's the way in which price deviates from this hypothetical slope and candlestick set that interests me. As price deviates from this chart, so will the slope study. That's when I update the chart. If the 20ma slope finds inertia (little or no slope change), then we've found the fractal shape that maintains the slope. That's called a "trend".

What accounts for the large drop at the 9th red candle?

The placement of all future candles, including that one, is nothing but par compensation for the 21st day (the dropped day) of the 20-day moving average. Doing this with a 20ma chart, you can always count backwards 20 days and see the candlestick that is being "par-compensated". With a 50ma chart, count back 50 days. etc etc.

[spielchekr]

PS: the only two things that will change on the chart are the closing prices of the future sticks, and the 20ma slope. The 20ma flatline (rollunder threshold) is set in stone, so the wick tops are fixed in place. So is the distribution extrapolation (where the wicks join the bodies).

[Doug]

The placement of all future candles, including that one, is nothing but par compensation for the 21st day (the dropped day) of the 20-day moving average. Doing this with a 20ma chart, you can always count backwards 20 days and see the candlestick that is being "par-compensated". With a 50ma chart, count back 50 days. etc etc.

Now I feel inadaquate - that was too simple.

Regards,

[spielchekr]

Simple, like a shell game.

The placement of all future candles, including that one, is nothing but par compensation for the 21st day (the dropped day) of the 20-day moving average. Doing this with a 20ma chart, you can always count backwards 20 days and see the candlestick that is being "par-compensated". With a 50ma chart, count back 50 days. etc etc.

Now I feel inadaquate - that was too simple.

Regards,

[nicolasillo]

THANKS!