Market Snapshot: Market Outlook NDX for Oct 8th '07

Saturday, October 06, 2007

Market Outlook NDX for Oct 8th '07

Dominant TF: Daily
Swings: UP-UP-UP
Market direction: UP ...

Reaction on jobs data was exuberant to say the least and took us by surprise, not in direction but in strength.

60mins: Up, but very overbought.
NDX flew through the strong MM resistance level at 2125. This sometimes happens when the market first halts on the 'stall' level invalidating the upcoming resistance level.
AdStoK is very bullish but also very overbought, and Entropy at a level of 2 is historically very high. We have to wait for a pause, either now sitting on 2141, or around the next intermediate level at 2056.

Daily: Crazy, i.e. still up. A slowdown would be salutary though, maybe around 2150.
Entropy is historically very high and AdStoK is so overbought that we have to see which resistance level will now hold. There is a Fib + (minor) MM level around 2150 we'll have to watch now.

Weekly: UP until resistance is found
AdStoK lines should soon meet, but significance level is so low at this time frame, so this is nothing more than a background information.

Welcome !

And enjoy your visit to this little "Market Snapshot" blog.

The market report blog has now moved to ForeTrade while this one will (time permitting) focus on actual chart commentaries on TF and ES eminis, as well as EURUSD to show how accurate and yet simple our proprietary method is. The reason for this change is that the Toolset itself is no longer for sale itself, simply because the sales effort and training/support activities were too time consuming. I now provide market analysis exclusively to fund managers until the technology is finally sold to a fund or financial institution. The blogs and Twitter will then be closed or turned private. Anyway, enjoy while it's there...

A closer look:
Behind these market snapshots lies an advanced TradeStation toolset including a set of C++ DLLs and API to access various advanced realtime calculations stored in the DLL to be used either within TS or with custom VC++ programs. While seemingly a little complex at first, the technique is actually relatively easy to grasp. In fact, since most humans can only memorize 3 to 5 (sometimes up to 7) pieces of information at any one time, and the technique being discretionary, it was essential to keep it as simple as possible.

What are those snapshots made of ?
In a nutshell, all reports are based on a minimum of 1 symbol in 3 Time Frames: 60mins, daily and weekly, themselves using more or less the same indicator set: self-adaptive swing indicator, MTFS (formerly AdStoK) and self-adaptive Entropy and a few visual aids (swing direction, support/resistance levels and paintbars). "Self-adaptive" is the key word here. There is virtually no parameter to tune, and it can be used as is, for virtually any market symbol. Each chart provides a visibility 3 to 5 bars ahead, so actual trading should obviously be complemented by a sound money management technique.

A common question : Why isn't there a user documentation then? Hmmm... Who ever reads manuals...? Well, I might provide one eventually but at the same time I might not... The reason is that it is more important to absorb the method over a period of time and make it one's own, i.e. then adapt it to one's own trading profile.
For the keen developer, a detailed API documentation for this set of advanced TradeStation Analysis Techniques will be released shortly.
For the time being a separate technical blog has been launched for those of you interested in learning a little more about what's under the bonnet.
For more info: voisin DOT bruno AT gmail DOT com

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Market Snapshot

Saturday, October 06, 2007

Market Outlook NDX for Oct 8th '07

Limpopo-Lipadi

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Learning the technique with a few commented charts

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