How To Make Money Trading The Markets.

timsk

Well-known member
Mar 18, 2002
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Would anyone like to explain what the hammer at the extreme right means?
Evenin' Richard,
It doesn't look like a volume blow off because - errr - there's no volume. Well, nothing special at least and then there's the minor detail of the spike pointing down rather than up! It could just be a trader having a bad day - fat finger syndrome? I wondered about a block trade going through as it's just into the US lunchtime session, but I would have thought the volume would be bigger if this was the case? That leaves rogue data which I assume is the wrong answer because you wouldn't tease us with a trick question like that - would you?
:cheesy:
Tim.
 

Mr. Charts

Well-known member
Sep 18, 2001
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www.nasdaq-nyse-trading-courses.com
Good evening, Tim,
Me tease anybody? How could you suggest such a thing? :cheesy:
No, it's a genuine question and who knows, some might find the answers illuminating, though others will already know.
Thank you for setting the ball rolling with your ideas. Let's see if anybody else wishes to stick their head above the ramparts. They are not going to be shot at by me !
This thread is meant to be helpful :)
Take care,
Richard
 

DionysusToast

Well-known member
Dec 6, 2009
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www.jigsawtrading.com
Maybe some people might find it interesting to go off at a tangent sometimes, so here goes.
Would anyone like to explain what the hammer at the extreme right means?
No answer, right or wrong will be laughed at by me.
Go on, have a go.
Richard
Well - without looking at Time & Sales ('cause I can't see ze symbol) it is hard to tell but I would say that it appears to be entirely possible that most of the action on the bar was at the $21.60-ish level but that a single trade at $21.30-ish created what on the surface appears to be a pin/bar.

I would say that this is NOT the price dropping to $21.30 and a bunch of buyers rushing in to push the price back up.

Like I say - hard to tell with out T&S though.
 

amit1986

Well-known member
May 19, 2009
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Ontario
I was also going to suggest something similar to Tim - the possibility of a block trade. However, the candle spiked down to a low where there was significant support on the previous retracement, so I would have to say it was a placement of a limit order gone wrong :D

In other words, someone may have decided to place a limit buy order at that price since there was support there, however, they may have initiated a limit sell order accidentally at that price, which immediately got executed because it was lower than the inside ask at the time.

Maybe some people might find it interesting to go off at a tangent sometimes, so here goes.
Would anyone like to explain what the hammer at the extreme right means?
No answer, right or wrong will be laughed at by me.
Go on, have a go.
Richard
 

morgan_edge

Active member
Jan 28, 2004
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something to do with a big print going off at the low of that bar, creating a split second 'spike'?
 

DionysusToast

Well-known member
Dec 6, 2009
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www.jigsawtrading.com
Maybe stop hunting by a MM?
Dom

I don't believe that MMs can do that. Sure, they will wiggle the price around in quiet times to find interest which could also be stops.

The buyer/seller with the best bid, always gets the trade, an MM can be buyer/seller when they are best bid. In the abscence of other players, their own bids/asks have to be 'reasonable' (which is a vague concept).

So - in this case, the prescence of other bids would prevent the MM from spiking the price like that and more than likely, so would the rule of them providing a reasonable bid of last resort.

Someone correct me if I am wrong here.
 
Jun 17, 2004
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Toronto
Dom

I don't believe that MMs can do that. Sure, they will wiggle the price around in quiet times to find interest which could also be stops.

The buyer/seller with the best bid, always gets the trade, an MM can be buyer/seller when they are best bid. In the abscence of other players, their own bids/asks have to be 'reasonable' (which is a vague concept).

So - in this case, the prescence of other bids would prevent the MM from spiking the price like that and more than likely, so would the rule of them providing a reasonable bid of last resort.

Someone correct me if I am wrong here.
You may be right. So maybe a broker is stop hunting?
 
Oct 5, 2009
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All

I found this method requires fast fingers if you have a few positions on at a time, so here's an ELD.

Idea is that you put this strategy on a chart window but disable it. When you are ready to buy, just enable the strategy and it will instantly buy as well as put a stop order at the low of the last bar.

Make sure you test, test, test & make any adjustments you need before running it on your live account please !!

Code:
[IntrabarOrderGeneration = True];
Inputs : QtyOverride(0), AccountSize(25000), RiskPercent(.25), MaxTradeValue(0) ; ;
Vars : intrabarpersist Done(false), intrabarpersist RiskCents(0), intrabarpersist NumShares(0);
if marketposition = 1 or GetPositionQuantity(GetSymbolName, GetAccountID) <> 0 then done = true;
if GetAppInfo( aiRealTimeCalc ) = 1 then begin 
    if done = false then begin
  RiskCents = (Close - Low[1]) + .01;
  NumShares = ((AccountSize / 100) * RiskPercent) / Highest(RiskCents,AvgTrueRange(14)) ;
  if MaxTradeValue <> 0 then NumShares = minlist(NumShares,intportion(MaxTradeValue / Close));
  if QtyOverride <> 0 then NumShares = QtyOverride;
  buy NumShares contract next bar market ; 
 end;
 if NumShares = 0 then NumShares = GetPositionQuantity(GetSymbolName, GetAccountID);
    Sell NumShares contract next bar Low[1] Stop ; 
end ;
Qty Override - number of shares to buy if you don't want the system to calculate
AccountSize -
RiskPercent - Risk per trade (%)
MaxTradeValue - max number of dollars to commit to a trade (total, not risk total)

Enjoy
Hey Pedro01 can you give any guidance on turning your code into an ELD, i know how to import one but not how to create one. Looks like a great automation to Mr. Charts strategy (which i'm attempting to learn). Thanks.