(Published on 17 July 2016, Re-published on 18 July 2016)
I have been following crude oil price for some time. However, recent price action got my full attention.
Here is a chart example of West Texas Intermediate (WTI) Crude Oil.
On 16 Jun 2016, the price broke below the S-Trader Pivot Support but the price action did not move downward aggressively as some of the indicators as noted below did not show heavy selling pressure in much action.
1) S-Trader Volumetric - relatively below Average volume. 2) S-Trader Smart Money Index - Positive (Green bar), big boys are still supporting the market. But, there is sign of declining support. 3) S-Trader Multi Months High Low - 1-month Low triggered. Similar situation occurred on 27 Jun except this time S-Trader Volumetric showed relatively Average volume.
On 7 Jul, it had a similar outcome with 27 Jun except S-Trader Smart Money Index at lowest positive side as compare to 2 previous events.
The following day 8 Jul and onwards Smart Money Index showed the big boys has moved toward the negative side (Red bar) while price action on side way.
Going forward, its quite interesting to watch the price direction.
In fact, the situation has becomes more exciting with some of the following news been published.
On 10 February 2016, CNMC breakout S-Trader Pivot Resistance and closed at SGD 0.20707. With the following indications been triggered. 1) S-Trader Smart Money Index - Positive, the big boys turned bullish. 2) S-Trader Multi Months High Low - 1-month High breakout. 3) S-Trader Volumetric - relatively High volume.
The following day, 11 February CNMC continued its rally and setting some indicators new record.
1) S-Trader Multi Months High Low - 1st 3-month High breakout. 2) S-Trader Volumetric - relative Very High/or Ultra High volume.
The stock price rallied to a closing of SGD 0.61 on 7 July 2016 with a profit of SGD 0.40293 (+194.6%).
If we miss the first opportunity, the next good entry happened on 20 April 2016 with a closing price of SGD 0.25637. CNMC breakout S-Trader Pivot Resistance with strong support from big boys (S-Trader Smart Money Index - Positive or Green bar) along with relatively Very High/or Ultra High volume. This 2nd opportunity also works a handsome profit of SGD 0.35363 (+138%).
Here is another example of stock price rallies in tandem with gold rally.
On 24 February 2016, the stock price broke above S-Trader Pivot Resistance with closing price of RMB24.41.
The price broke out with the following indications. 1) S-Trader Smart Money Index - Positive (Green Bar). This indicates strong support from Big Boys (Smart Money). 2) S-Trader Multi Months High Low - 1st 6-month High breakout. 3) S-Trader Volumetric - relatively High volume.
Thereafter, the stock price rallied with the latest closing price of RMB46.56 on 8 July 2016. A profit of RMB22.15 (+90.7%). Chart Source : 1) Metastock
Gold price rebounds on early January 2016 from its bottom.
Similarly, ABX also rebounds around the same period. Prior to that, ABX had been moving in the sideway market for certain periods, as shown in the chart below.
In side way market, the price action only able to hit 1-month High or Low several times. Despite breaking the 1-month High, the stock did not rally much.
The first breakthrough came on 7 January 2016 (point#1) with the following indications on S-Trader.
1) Price broke above the S-Trader Pivot Resistance 2) Price action hits 3-month High. 3) S-Trader Volumetric recorded relatively High volume action. 4) S-Trader Smart Money Index showed the Big Boys (Smart Money) supporting the price breakout.
However, the price action did not move any much further.
In fact, the price pullback but supported by S-Trader Pivot Support. At the same time, smart money still in the market supporting it (as shown by S-Trader Smart Money Index - green bar).
On 25 January 2016 (point #2), once again the price made another breakout with the similar indications on S-Trader but this time it hits 6-month High.
To date, I have briefly introduced some of my personal custom indicators as noted below. All this indicators have been developed using Metastock Formula Language.
1) S-Trader Pivot Support and Resistance 2) S-Trader Volumetric 3) S-Trader Smart Money Index 4) S-Trader Multi Month High Low 5) S-Trader Multi Year High Low
Going forward, I will be using this indicators to analyse stocks from various markets such as US, Hong Kong, Singapore and others. If there is any appropriate indicators to further enhance our analysis available within metastock software will be used together with S-Trader Trading System.
Also, more details on the use of this indicators will be shared in the analysis.
Under Metastock's Expert Advisor, there is an interesting trading system which caught my attention. The trading system is known as "Profitunity - Bill Williams".
An example chart with Profitunity - Bill Williams trading system.
Notice those arrows on the chart which indicates the Fractals. For more details on Fractals, click on the link below. A Trader's Guide to Using Fractals A quick glance on the fractal points, one could identify the tops and bottoms of the price movements. However, using the original Fractals presentation on metastock could make the task of analysis challenging for some users.
To make it more presentable, I have developed a custom indicators called "S-Trader Pivot Support" and "S-Trader Pivot Resistance".
An example chart with S-Trader Pivot Support and Resistance.
Basically, the S-Trader Pivot Support and Resistance indicators connect all the top and bottom Fractals accordingly forming sort of price movement channels. With it, we could use it to identify price break out.
When traders/investors place their money on stocks/indices/commodities, their main concern is whether they are on the right side of the market.
If we are able to address the following questions, it will be a great advantageous to the retail traders/investors where they could ride along with the smart money's wave.
1) Who are the smart money ? 2) When are they investing ? 3) Where are they investing ?
With that in mind, I have developed a custom indicator called "S-Trader Smart Money Index".
