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.
Chart Source :
1) Metastock
Here I shall introduce a new S-Trader custom indicator called "S-Trader Volumetric".
Extracted from Investopedia website.
"Volume is an important indicator in technical analysis as it is used to measure the relative worth of a market move. If the markets make a strong price movement, then the strength of that movement depends on the volume for that period. The higher the volume during the price move, the more significant the move."
An example chart of Barrick Gold Corp (NYSE : ABX).
From the chart, we can observe those price action that made 3/6/9/12-month High followed with strong volume. (As highlighted by Blue Colour Arrow).
However, it can be quite challenging for some untrained eye to use raw volume to make judegement whether it is average, high or very high/ultra high volume.
S-Trader Volumetric is developed to overcome that matter.
Please take note that the Volumetric is a supplement indicator to the existing Volume indicator and not a replacement.
An example chart is shown below with S-Trader Volumetric.
The table below illustrates the Volumetric representation.
Notice that its much easy for the users to interpret the relative volume using Volumetric. All those volume indicated earlier by the arrow can be shown as High relative volume rather than a subjective expression (such as strong or higher volume).
Chart Source :
1) Metastock
In the last post, we looked at 52-week High on Dow Jones Industrial Average (DJIA) during US Subprime Mortgage Crisis 2008/09.
In 2nd part of DJIA, we shall look at 52-week Low.
DJIA recorded its 1st 52-week Low of 11,634.82 points on 22 Jan 2008. Instead of continuing downtrend, it rebounded to a high of 12,767.74 on 1 Feb 2008.
A gain of +1,132.92 points (+9.74%).
This price action aligned with the alternative strategy which was stated during our introduction of 52-week High Low, as follow:
"Alternatively, another strategy is to sell when price reaches its 52-week high on the assumption that price will recede, or to buy when price reaches its 52-week low in anticipation of a value play."
Take note that the market lost -2,563.28 points (about -18% ) from its high of 14,198.10 points on 11 Oct 2007 to its 1st 52-week Low on 22 Jan 2008.
If we continue forward, we will make an interesting discovery that the 1st 52-week Low was not the lowest point DJIA hit during the crisis. DJIA touched its lowest point of 6,469.95 points on 6 Mar 2009.
In the coming posts, we shall look at S&P500 and some Asia markets indices before we conclude 52-week High/Low strategy.
Source :
1) Metastock
2) www.investopedia.com
