New indicator and other comments

    Posted by matt on 30th of Nov 2020 at 09:59 am

    we've had a resistance cycle on the 120 min SPX chart since late last Wed. This morning we got one on the 1/2 day chart

    otherwise over the weekend I created a new indicator that for now I'm calling 4X MA Der - means derivative. I'm basically measuring the difference between the BPT MA and 9 EMA, and the 9 EMA to the 20, and the 20 to the 34, and the 34 to the 50 EMA and then taking the 2nd derivative of that (Calculus basically)

    The indicator is useful for objectively showing you when the momentum is about to change - basically whenever the MA ribbons get to wide as you know price is due for a mean reversion. See the first chart a 195 min or 1/2 day chart. The times when the Ribbons get super side, you can see the indicator marks those and what's nice is that it's able to give you early notice before you get the big moves kind of like an early warning system. Also it works well whenever the MA Ribbon pinches. Basically I use the indicator when the ribbons get super wide and whenever they pinch get real tight. I'm in the process of placing the indicator on all the time frames from daily all the way down to 1 min, it's fractal 

    last Friday on the 195 min it was saying the ribbons were too wide and due for some mean reversion, and this morning we got a little bit of that

    Indicator - what period are

    Posted by jroger on 30th of Nov 2020 at 10:20 am

    Indicator - what period are you using for the BPT MA?

    on TSLA, the indicator is

    Posted by matt on 30th of Nov 2020 at 10:07 am

    on TSLA, the indicator is triggering a warning that the MA ribbons are too wide, LOL not too shocking. This a daily chart so the close matters but for now the derivative flipped negative which means the ribbon may be about to pull in soon

    here's example of that indicator

    Posted by matt on 30th of Nov 2020 at 12:17 pm

    here's example of that indicator on a 4 and 1 min ES futures chart, earlier on that washout intra day as you would expect the MA ribbon was expanded, the indicator showed a bounce coming basically at the lows, which played out

    60 min TSLA you can

    Posted by matt on 30th of Nov 2020 at 10:27 am

    60 min TSLA you can see that morning high was a gift to sell some, had RSI 5 divergence

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