Opening price signal?

[jd1888]

I'm currently reading a book called The Market Makers Edge, in it the book it mentions opening price signal. This calculation is supposed to help gauge the trend for the day.

Heres the equation OPENING PRICE SIGNAL= LAST PRICE - OPENING PRICE.

Does anyone now of this equation and could they please help shed some light on it for me. I am wondering wether the LAST PRICE is yesterdays close or the last quoted price of the day so far?

Thanks.

 

[moogy]

I'm currently reading a book called The Market Makers Edge, in it the book it mentions opening price signal. This calculation is supposed to help gauge the trend for the day.

Heres the equation OPENING PRICE SIGNAL= LAST PRICE - OPENING PRICE.

Does anyone now of this equation and could they please help shed some light on it for me. I am wondering wether the LAST PRICE is yesterdays close or the last quoted price of the day so far?

Thanks.

Hi JD188,

I am new here so do not actually know my way around. I have the same question as you, but as there is no date or time to indicate when you posted your question , I am left wondering how long you have been ignored?
Seems very strange that no dates or times are specified with posts. It this left any good, as links on the home page to articles fail to function and e-mailing the people responsible for the site results in the mail being rejected.
I am not very impressed

Good Luck

Moogy

 

[Lord Flasheart]

looks like a very odd calculation to base things on

 

[moogy]

looks like a very odd calculation to base things on

Many thanks, I will take your advice.

After a whole afternoon of research and head scratching, I have worked out that what Josh Lukeman is trying o say in his book "The Market Traders Edge" ;
Basically if the current share price rises above its days opening price only trade LONG positions and vice versa............ However, it would be impossible to make this simple point any more complex than he is capable of.

Good luck to all

Moogy

 

[bonker]

I'm currently reading a book called The Market Makers Edge, in it the book it mentions opening price signal. This calculation is supposed to help gauge the trend for the day.

Heres the equation OPENING PRICE SIGNAL= LAST PRICE - OPENING PRICE.

Does anyone now of this equation and could they please help shed some light on it for me. I am wondering wether the LAST PRICE is yesterdays close or the last quoted price of the day so far?

Thanks.

Dont know if this helps, but in equities, the closing price is often revised to a settlement price that can really jumble things up.

 

[moogy]

Hi Bonker,

Thanks for your response, that information really messes things up. There is nothing which is simple and straight forward in this game is there!
I think the best way to make money with spread betting is to sell courses porporting to teach others how to do it....25 people in a cheap hotel in London paying £600 each to learn Fibanacci numbers seems a good way of making money to me, been there seen it, done it and walked out the poorer.

Regards and Good Luck and Happy New year to all


Moogy

 

[China Diapers]

Have you read about the DIBS method? One of the rules is to only take long trades above the daily opening and short trades below so that you are always positioned in the direction of the daily trend. From there daily trends can go on to form weekly trends, weekly to monthly etc.

Don't know if this is relevant just feeling trigger happy today.

 

[China Diapers]

Trading the "hot hand": Trading the strongest/weakest market is actually really simple. For example, yesterday the Eur/Usd was up more proportionately than the Usd/Chf was down. This was because the Usd/Chf wasn't even a down day. Definitely off its highs but not down relative to last week's close. The Eur/Usd was up, up and away! So that is the market you buy.

And I did! I'm sure I had company from this group.

In the pit the first thing you learn--- when you are ready to actually make money..., and stop the bleeding, is:

Only be willing to buy a market if it is up on the day.
Only be willing to sell a market if it is down on the day.

Obviously, it would logically follow that the currencies which are up more are better buys and the ones down more are the better shorts. So basically, if you get a buy setup forming on two strong currencies, take the trade on the one up most on the day.

This actually means that you never go short a currency unless it is "down" relative to yesterday's close; or go long for any reason unless the market is "up" on the day.

Review for yourself how many large losses you could've eliminated from your past trades if you followed these rules. At the same time, I am certain you would have eliminated very few of your biggest winners by doing this.

Might be helpful, might not

 

[moogy]

Hi China Diapers,
Having spent most a today and yesterday reading Fibonacci theory, in order to buy the rebound thro' the Fib' percentages and placing an order to by DOM at 403 (above the 76% retractment) with spot at 394p Risk 9 pipd , Target at 434 ( 62% Fib retract could go to the 76% but I a not greedy) for a profit of 31 pips with risk ratio about 3.5:1...............your mail comes as an enlightenment, many thanks for your effort.
Having spent most of last week TRYING to pull the trigger on a day trade I find, checking Weekly trends for direction, then daily , then hourly then 15 mins gives me conflicting signals . I the hourly chart looks like a BUY I find the 15min chart loos lie a SHORT. Yes the bottom of the market was obvious 5 hours ago and 2 hours ago ut NEVER when I am looking at the chart.

This idea of going LONG when the daily price is above its opening is what Josh Lukemans ( 13 years out of date) book is about. However , the details are never actually prescribed. Forgive me for saying that you prescribe trading LONG above the opening and SHORT below it but for idiots like me I find it diffecult to establish what the opening price is? Is it the first tick on the opening minute, the price of the gap-up ( on a Monday Morning) , or is it the close price of the 1st 30 candlestick of the day? Assuming I knew the correct opening price and saw the current price rise above it on a 15 min chart do I go LONG and set the previous day's Highest price as a terget???
I go on courses ( and read several books) but those running courses will never give answers to questions as they use the " Unable to give specific reccommendations) as an excuse to never answer the question. I note no one, but one , offers real time day trading training.

Forgive me for moaning and thank you for your mail I will go away and look at this closer later and see if i can extract some method of executing these type trades.

Happy and I hope Profitable New Year to you and all.

Moogy

 

[moogy]

Dear China Diapers,

Sorry I have re=read your earlier post ( 5 or 6 times). You are of course refering to the current days price relative to yesterdays close? Now, I see the point, I hink I have been too tied up with the current days opening.

Thanks again

Moogy

 

[moogy]

Hi China Diapers,

One more question, you mention the USD/CHF pair, as this is a continuous market starting Sunday 9pm and closing Fri 9pm (I think) when do you determine the "daily closing price"???
This is not obvious to me
Regards Moogy

 

[bonker]

Hi Bonker,

Thanks for your response, that information really messes things up. There is nothing which is simple and straight forward in this game is there!
I think the best way to make money with spread betting is to sell courses porporting to teach others how to do it....25 people in a cheap hotel in London paying £600 each to learn Fibanacci numbers seems a good way of making money to me, been there seen it, done it and walked out the poorer.

Regards and Good Luck and Happy New year to all

Moogy

I know how you feel. Trading for a living can be a real pain in the bum. The situation is a bit like that of a musician struggling to be a rock star. Except the musician has fun whereas a trader gets a miserable life of solitude.

But then again, trading is still better than working in some crappy office shoving paper around