Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : NetCurrents NTCS -- Ignore unavailable to you. Want to Upgrade?

To: Teresa Lo who wrote (5479)	2/4/2001 11:12:55 AM
From: dvdw©	Read Replies (2) \| Respond to of 8925

Theresa; I enjoy your posts even though I dont trade. Key is where the acceleration meets inertia, where selling or buying starts. As a non trader I always had better luck catching the macro waves between longer frames of time. Maybe three to five days. The important price points are nesting areas where the larger holders either distribute or accumulate. It is apparent to me that the market is all about who controls the stock. Macro trends are linked in total to this phenomena. Movement is proportionaly strong or weak within the greater macro trend of Who wants in and who wants out. It's entirely cynical view that nothing gets anywhere unless the right money has an interest. Keep up the great work.

To: Teresa Lo who wrote (5479)	2/5/2001 9:49:46 PM
From: Teresa Lo	Read Replies (1) \| Respond to of 8925

<font color=blue>The Need for Speed, Cont'd: We continue with insights contributed by those around us, this one by a trader from our eGroups thread: groups.yahoo.com "A quick glance at the above posts leads me to believe you are trying to develop a concept for speed, correct me if I'm wrong I did not have time to look into all the posts. I can not help with the programming, but maybe able to add some input to the subject. Van Tharp looked into a speed/velocity indicator for a demonstration of designing entry techniques in his book Trade Your Way to Financial Freedom (Crappy title, excellent read) pages 220-224. He proposes measuring speed as "the distance travelled per X day period". X being your choice. Speed as an entry signal, "The speed indicator being one that moves back and forth across a zero line....... when speed changes direction and accelerates in the opposite direction we have a possible entry signal" Concept underlying the entry signal, "Increase in speed means that it is more likely to keep going in the same direction, decrease in speed may indicate a possible change in direction" Formula for acceleration/deceleration, " Velocity change = [(Velocity today)-(Velocity on day X)] / time" Findings: Van Tharp produces a small study of Wheat prices for the march 95 contract with comparisons for 20 day, 10 day and 5 day velocity. He notes a dip in acceleration just before important breakouts. He also notes that this study is to small to yield any significant findings. Van Tharp concludes by suggesting that accelaration may possibly be used as a retracement setup: "look for decelaration just after a channel breakout". He also notes, "that the start of accelaration may give a low risk point at which to place very narrow stops" Intuitively I believe there is a lot of merit in his findings, ie: I've often perceived an accelaration after a retest of a recently broken point of resistance. Volitility may also pick up these relationships. I've never tested these relationships because ............, ah, you know the answer! (this is why position trading is still a part time endevour for me.) I also believe Pete Steidlemeyer confirms this concept in his Market Profile research. From memory he confirms an acceleration once prices are x standard deviations away from old support/resistance. I take this to mean that once prices move away from old s/r they rush to seek new s/r. God, I'm rambling again... off on a tangent!" Happy days Bagua22