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Strategies & Market Trends : Systems, Strategies and Resources for Trading Futures -- Ignore unavailable to you. Want to Upgrade?

To: Patrick Slevin who wrote (3340)	9/7/1998 4:29:00 PM
From: SE	Read Replies (1) \| Respond to of 44573

RE: Thinking outside the box. I think in large part some of what this means can be put into a simple example related to current TA methods and time frames. Currently when someone looks at a chart, the day starts at 9:30 am and ends at 4:00 pm. A 5-minute bar or candlestick chart starts at 9:30 and goes for 5 minutes and then a new bar starts. Why does it have to start at 9:30? Why not try a method of moving the data forward 2 or 3 minutes and then starting your five minute bar chart? Would the indications be different? The candles speak a different language? You bet! How about instead of looking at the high and low from the previous day, try looking the high and the low of the last four hours, three hours, six hours? How about when it is noon have the high and low for the last six hours and then at one o'clock, you will have a new high and low to look at, and at two o'clock, potentially another new data set. A revolving/evolving/expanding high/low. I think things like that are thinking outside the box. The key is to find something that has value and is a different way of looking at the same old standard data. To differentiate oneself from the crowd requires a new look at the old data/methods. Another example is the TICK data. Many just look at absolute levels in the TICK and conclude it is of little value. Same thing could be said of the PREM. However, I disagree. I am beginning to think in fact that you could build a system to trade the SPOOs mechanically just around the TICK. That is not important here, but think about this...there is a wealth of information in the TICK. You can look at trends, absolute movements, %-age change, %-age change within time frames, chart patterns within the TICK, moving averages and the TICK, divergences from the SPOO and on and on..... If you look at the same things as everyone else, you might think you know what the crowd will do next, but so does everyone else. Taking it a step beyond and "thinking outside the box" may give one an edge. A failure in the 5 minute chart at 11:55, might be caught two minutes earlier in the 5 minute chart starting at 9:33, instead of 9:30. Two minutes can be a lifetime in the SPOO. Just a few thoughts I thought I would share.... -Scott