The TradingEdge

[kiy]

TimeFrames...%B...moving averages...TRIN explained...
...start here...
TimeFrames...with the CCI indicator
I found that intraday has its own Hi/Lo cycles (may have something to do with the concept of buy low sell high and overbought and oversold levels...?...relative to what...?...the Bollinger Bands)...the 5minute CCI runs around up and down YoYos all alone is its own cycle...
...the 10/15/30/60minute charts cycle together...this is what I call the TimeFrames; tracking CCI as it cycles from oversold to overbought (-100 and +100 CCI signal lines) to oversold...
10minute is early but is first alert a change in direction is starting...If you took the +/- 100 CCI signals it is a good idea that you have the 5 minute CCI on the same cycle along with the 10minute.
10min. CCI at centerline suggest that you can step over to 15minute CCI...15min at centerline you can step to 30minute...
30minute will keep you in the trade... and enable you to capture the most number of points if you entered on 10 or 15minute signals...this is day trading/swing trading...
60 minute lags but needs to show that it is turning as the 10/15 minute timeframes set up to start another change in direction from overbought/oversold signal lines...+/- 100 signal lines.
The Daily CCI chart is its own CCI cycle...if daily CCI points UP you can consider the Market's "BIAS" is up until daily CCI signals change in direction...BEST trades are...traded with the direction of the daily bias. And the Weekly CCI is it's own cycle...

When I say follow the signals at signal lines; the signal lines are the CCI +/- signals of overbought and oversold levels and the centerline ...know reversals happen= requires the crossing of one of these signal lines no matter what timeframe you are trading.

First set of charts are the more basic settings and is all you need to track the intraday CCI cycle...just listen to the CCI signals on the charts...not what you subjectively think the Market should be doing and not what others or I may say...make the charts tell you what is happening. Stay within the parameters of the Bollinger Bands and the special relationship the Bollinger Bands and CCI have...(read the section below on %B and moving averages if you want to understand this relationship)

Dollar 15minute
http://stockcharts.com/c-sc/sc?s=UUP&i=p10909570794&a=225089985&r=362

Tick/TRIN...5minute
http://stockcharts.com/c-sc/sc?s=SPY&p=5&b=5&g=0&i=p44516783606&a=202434724&r=5361

10minute
http://stockcharts.com/c-sc/sc?s=$SPX&p=10&b=5&g=0&i=p47281977067&a=209189259&r=6446
15minute
http://stockcharts.com/c-sc/sc?s=$SPX&p=15&b=5&g=0&i=p44095237932&a=202389515&r=5316
http://stockcharts.com/c-sc/sc?s=$SPX&p=15&yr=0&mn=0&dy=2&i=p17700279303&a=254667798&r=6582
http://stockcharts.com/c-sc/sc?s=$SPX&p=15&yr=0&mn=0&dy=5&i=p05699271362&a=257523457&r=8529
30minute
http://stockcharts.com/c-sc/sc?s=$SPX&p=30&b=5&g=0&i=p78924320561&a=202389539&r=2291
30minute TRIN
http://stockcharts.com/c-sc/sc?s=$TRIN&p=30&yr=0&mn=0&dy=10&i=p38281783395&a=256325457&r=3202
60 minute
http://stockcharts.com/c-sc/sc?s=$SPX&p=60&b=5&g=0&i=p83426028267&a=202389579&r=4984
http://stockcharts.com/c-sc/sc?s=$SPX&p=60&yr=0&mn=0&dy=7&i=p97936097387&a=257283441&r=7071
This chart gets the last word...if it doesn't print here...didn't happen...attn goes mainly to stochastics and slope if undecided about Market turning. Can also see RSI settings cycle...
http://stockcharts.com/c-sc/sc?s=$SPX&p=60&yr=0&mn=2&dy=0&i=p73613459850&a=145757603&r=650
*** the next chart is a look at 60minute and the 20period moving average...if everyone can agree that this 20 average closely represents the 3day moving average on the daily chart (note that the daily averages of 3-5-10 is where the grail quest is; not on these intraday charts...the quest can start with the 60 minute chart 20period average intraday=3day average on the daily)this chart would serve as an alert that the 3 averages on daily may be about to trigger...you will find that the Transportation average is often the leader.
*** if anyone has a 60 minute chart and 20 moving average of a series of the main ETFs...USO... XLE...UNG...GLD...SLV...CU...SLX...XLF...XLK...XLY...et al...I would add it here as part of the group of the basic charts to follow.
http://stockcharts.com/c-sc/sc?s=$SPX&p=60&yr=0&mn=3&dy=0&i=p03689541727&a=173142815&r=995
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Daily
http://stockcharts.com/c-sc/sc?s=$SPX&p=60&b=5&g=0&i=p19567325940&a=241456151&r=1009
http://stockcharts.com/c-sc/sc?s=$SPX&p=W&b=5&g=0&i=p55826184962&a=204972987&r=4539
http://stockcharts.com/c-sc/sc?s=$SPX&p=D&b=5&g=0&i=p02411353074&a=204971830&r=9561
http://stockcharts.com/c-sc/sc?s=$SPX&p=D&b=5&g=0&i=p77193036312&a=208646347&r=460
http://stockcharts.com/c-sc/sc?s=SPY&p=15&b=4&g=1&i=p67993374966&a=244995065&r=9331
Weekly
http://stockcharts.com/c-sc/sc?s=$SPX&p=W&b=5&g=0&i=p56314205415&a=204071390&r=458

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Volatility Bands around VXX...and focus on %B
Within the %B indicator draw some horizontal lines at 1.00 and zero...dotted lines at .25 and .75, What this shows is the Bollinger Bands laid out flat and you have boxed in price...and you think in percentages making centerline 50%.

How to put Multicollinearity to good use...With the 1MA you connect all closing prices...this 1MA line and %B are the same=%B=price...(can see how %B acts between May and July...sideways as %B stalls at the 25% line....and then stalls at 75% line)..You can see how much alike CCI and %B are...so I can say Price=%B=CCI= BB(Bollingers Boxing in price).

VXX weekly...note with weekly 10,2 Bollingers you are looking at the 50 day average...
http://stockcharts.com/h-sc/ui?s=VXX&p=W&yr=1&mn=0&dy=0&id=p19720543004
http://stockcharts.com/c-sc/sc?s=VXX&p=W&yr=1&mn=0&dy=0&i=p19720543004&r=6284

Why 3 day average...On the chart I can take away the outer bands of the double Bollinger Bands and add a 3EMA. SIMPLE math for a moving average requires that price needs to close on the other side of the avg. to change the total of the average to start turning the other direction=signals a potential change in price direction; and if continues will create a change in direction/trend...if this happens from oversold/overbought levels you have a "trigger" that is going to most likely set the 3 day moving average in motion=one of The Laws of 3...3 day is in motion and price cuts through 5day avg. 3day continues to follow crossing 5 day (5 day follows 3 day avg.) and price cuts through 10day and the 3 and the 5 day follow...by the time 3 and 5day are below the 10 day average...you likely have a change in trend and all of the averages have reversed...also a common definition of TREND is that it takes 3 days to make a trend...=re-write it =it take the 3day average to change a trend...that was the Law of three and was the Quest I had Ziko on...the Grail QUESTion continues...tell me which is the more important...the 3day...5day or the 10day average...? If you have been paying attention the answer has been stated here...
These...triggers will have certain technical indicators reversing at the same time...mainly the stochastics (the slow line of stochastics usually being "3" is where I first started looking at the 3day average and a few other technical indicators also have 3 as part of their formulas)...and momentum picks up as you see the 3-5-10 triggered by price and confirmed by the 3 day crossing the next average (also a trigger)...(should make one ask what stochastics is doing as 3day continues; this is one of the reasons why I say stochastics is the best indicator)...

On a 10,2 Bollinger a reversal from overbought/oversold suggests=mean reversion= a return to centerline (50% on the %B))...The Law of 3s suggests that nothing happens until the 3 day moving average trigger happens...so quit speculating...be patient and wait for this first trigger(signal) and maybe the next trigger to place your bets...

Weekly chart with 1EMA and 3EMA...
http://stockcharts.com/c-sc/sc?s=VXX&p=D&yr=1&mn=0&dy=0&i=p71895353881&r=1534
If anyone can make 30 and 60minute chart with 3/5/10MAs like this next chart = that will update throughout the day it would be very useful...this chart does not update intraday...
http://stockcharts.com/c-sc/sc?s=$SPX&p=60&yr=0&mn=0&dy=7&i=p25793724194&a=184790018&r=628
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TRIN is one of the more important keys...understand it inside and out...
You need a definition of momentum at the Bollinger Bands which can be considered as chart signal lines same as a trend line or support/resistance line...trigger lines.
http://stockcharts.com/c-sc/sc?s=$TRIN&p=30&yr=0&mn=0&dy=10&i=p38281783395&a=256325457&r=3202

Start here...I want to define momentum at certain chart signal lines/trigger lines...such as the outer bands of the Bollingers...
What TRIN does is smooth out the Up/down volume and the adv/declining stock that have been traded traded (the chaos)...so a stochastices of TRIN should be better than the first chart seen below...TRIN alone would be better...use of stochTrin confirms change in momentum...at the overbought/oversold levels...(recalling the QUESTion buy low/sell high...overbought/oversold...relative to what...?...
Stochastics
Developed by George C. Lane in the late 1950s, the Stochastic Oscillator is a momentum indicator that shows the location of the close relative to the high-low range over a set number of periods.
According to an interview with Lane, the Stochastic Oscillator "doesn't follow price, it doesn't follow volume or anything like that. It follows the speed or the momentum of price. As a rule, the momentum changes direction before price."
http://stockcharts.com/c-sc/sc?s=SPY&p=30&yr=0&mn=10&dy=0&i=p97395563502&a=229712229&r=9749
http://stockcharts.com/c-sc/sc?s=$TRIN&p=60&yr=0&mn=0&dy=15&i=p34816832212&a=256326577&r=7342
http://stockcharts.com/c-sc/sc?s=$TRIN&p=15&b=5&g=0&i=p38121756286&a=242159824&r=1868
http://stockcharts.com/c-sc/sc?s=$TICK&p=5&yr=0&mn=0&dy=15&i=p71838696573&a=217834305&r=644
From...DK Report...Stockcharts.com
The chart helps understand the short-term health of the NYSE. The red line is the 3-day EMA, and the light blue line is the one-day EMA. A climbing red line above zero is a sign of a healthy market. Crossovers of the 1-day and 3-day EMA's in either direction can detect short-term trend changes.

TRIN - "TRading INdex", (ticker: $TRIN $TRINQ) is an important volume-based confirmation indicator as well as overbought and oversold indicator.

...TRIN is key and trend/direction obviously can be seen with the stochTRIN indicator...another key...
I frequently sign off...Make the Market your friend...
Having reached understanding...Give back some to a good cause...
We can beat the Crooks in their casino; but don't kid yourself...there is karma here and all the laws of money apply...
The needs of the many out weigh the needs of the few...and of the one...
Ki...Kiy...Neph...theMatrix
...the TREND of TRIN is your friend... also...
Finding order within chaos=has to be the Market internals...advance/decline and the volume that goes with it (momentum)...is...It...the TRIN...
..It is one of the keys...TRIN...is not a perfect indicator...read page 2 of this link...BUT...as noted in the definition...it is the "direction"...and trend of the Arms index that is more important... (...and can read about ChiOsc also...it has the numbers 10 and 3 in it... if click link...)
<a href="http://www.onlinetradingconcepts.com/TechnicalAnalysis/ArmsIndexTRIN.html">http://www.onlinetradingconcepts.com/TechnicalAnalysis/ArmsIndexTRIN.html<a/>;

When reading the TRIN you have to think in reverse...high trin is price extended to the downside...low trin price extended to up side...
Stochastic of the TRIN (stochTRIN) =THINK in reverse also=oversold reading means price is extended to the upside...stochastics in upper level=price extended to the down side...
TRIN is the market internals- advancing/declining and the volume that goes with them...The formula for the Arms Index is simply:(Advancing Issues / Declining Issues) / (Advancing Volume / Declining Volume)
http://stockcharts.com/c-sc/sc?s=$TRIN&p=30&yr=0&mn=0&dy=10&i=p38281783395&a=256325457&r=3202
http://stockcharts.com/c-sc/sc?s=$SPX&p=60&yr=0&mn=0&dy=7&i=p68818940955&a=242287439&r=5766
http://stockcharts.com/c-sc/sc?s=$SPX&p=60&yr=0&mn=0&dy=5&i=p75889801379&a=256025830&r=5697
http://stockcharts.com/c-sc/sc?s=$SPX&p=D&yr=0&mn=1&dy=0&i=p63170086178&a=256025337&r=8103
This is trading...at least a start...foundation...
To enter here...you must place that EGO outside...and let the Market tell you what it is doing...not you think you can tell it what it is going to do...failure to do this can be very expensive in more ways than one...that EGO needs limits and money management...
Make the Market your friend... it really is relatively simple...
...only humans like to make simple complicated.
Enjoy...
...theMatrix...