Friday, May 23, 2014

This is some thing I've been working on for a few months, but it's related to the Weekly Wrap Up below as well. The SPY closed at an all time high, but if you look at it, it closed out side the upper bollinger band, and closed right at the previous all time high made on an intra-day basis back on 5/13, which is ALSO the previous SWING HIGH's, if you look on that chart we did the same exact things back in January and March just before we had pull backs. We get through these things two ways, one is we have a candle go right through them, the other is we eliminate the resistance by GAPPING over it, which Da Boyz do in the EXTREMELY low volume over night futures, which may happen going into the open next Tuesday. Other wise, we may pull back from here again.
What I've been working on is the "BBSqueeze" indicator, the top indicator on the chart. Now, the million dollar man, John Carter of "Simpler Options", used this indicator exclusively last year to make a million dollars in his trading room on the site. Well, ok, he doesn't use it exclusively, but he uses it a LOT, in conjunction with FIB confluences and extensions, and other things. What I've been doing is watching his nightly video's that you can get for free by signing up for them at his site, I've been watching him for about six months now, and if you stick with it you can pick up little bits and pieces of how he uses it, probably just enough to make you dangerous, hahahahahahahahaha!! That's a Ninja Trader indicator on that chart, he uses his own "special" indicator on Trade Station, but I can tell you that the one up there is pretty close.
The concept is simple, the bollinger bands "SQUEEZE" together during periods of low volatility, which lasts until they break out in a high volatility move in one direction or the other, the indicator does NOT tell you which direction that will be, only that a move is coming, this indicator DOES have buy/sell buttons on it but I've never been able to get them to work. There's much more to the indicator that just bollinger bands, like Donchian channels, momentum, RGaussan filters, periods and poles, and CCI, but the basic concept is all I look at.
The red dot's on the middle line indicate the "SQUEEZE" is in play, the blue dot's are simply normal conditions, the red and green boxes I drew on the chart just show some places where it worked, and also how you can use an indicator like the Woodies CCI to give you some odd's of which direction it might break out in, usually once they break out over or under the bollinger's John figures the move is good for like up to eight bars or so.
To be FAIR, we actually had a BREAK OUT of a "SQUEEZE" today, so, IN THEORY, we should be on a buy signal, it's just that I have a few reservations as mentioned at the top.

Here was a wonderful signal it generated on some thing called the EPI, hahahaha, once it gapped over the bollinger is was Sadie Bar the Fricking Door!

Indian Stocks: You Want a REAL Opportunity? Know WHEN to Look for It
Why the Nifty and many other emerging market stocks screamed "Buy!" three months ago
By Elliott Wave International
See how these indicators turned us bullish on India: 1) bottoming Elliott wave pattern, 2) bearish sentiment extreme towards Indian stocks, 3) big capital outflows from emerging market ETFs. Read more.


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