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
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 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
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