Repeating patterns

I recently saw a comment indicating that each bull/bear market has its signature patterns. For example the bear market of 2000-2002 had V bottoms as bottoming patterns. It appears that the first pattern is created based on events/emotions and then the various players try to game that initial pattern to base their subsequent trades. So we get a similar pattern that morphs a little but retains the basic structure. Here are a few examples:

Progression of simple and exponential RSI

Here is a 2m, 5m and 15m snapper on a 1m chart. The red line indicates how the snapper would look when the 1m bar closes.

Wedges

There have been a few good wedge patterns on the NASDAQ 100 index hourly chart over the last month. The market is currently setup close to breakdown but this week is options expiry so who knows where the additional volatility will push this market.

Another nice trending day

No red candles until about 12:30 pm and then a bounce off the 0.5 Fib level around 2:30 pm.

Another nice trending day

... with mixed signals after 3 pm. Two good trades of 100 YM points long and 50 points short.

Tradestation strategy with Vix, AdvDec and Volume

Here is an example of couple of good trending days:

Where to find the tradestation code?

I got a question on how to get to the code for the tradestation indicators. To copy the code, click on a blog post's heading [for e.g. 'Fed Funds Target rate'] and the code for the indicator is the first comment. The code then needs to be copied to a new indicator/paintbar on your tradestation platform. Once that is created you can then apply that indicator/paintbar to any of your charts. This whole process requires some good knowlege of the platform [in my view a force multiplier on TS].

Most of the indicators have the code attached. Some that don't are because they are a bit involved but if you are interested please leave me a comment and I will be more than happy to share any of the indicators.

Fed Funds Target rate

St Louis Fed has lots of free data available for download.

http://research.stlouisfed.org/fred2/

Fed Funds rate data since 1983 can be found there. Here is the chart of the rate as a TS indicator.

Breakdown paintbar on VIX chart

The Breakdown / Breakout paintbar works great on a 5m VIX chart



Or a 15m chart.

IntraDay Fib lines

The line in the middle is the 50% between high and low.

MACD

MACD as charted by some software vendors.

RSI

Relative Strength Indicator as charted by other software vendors.

Break out / Break down

This setup helps to see the waves clearly. Dark Blue and Red indicate Break out and Break down respectively. Green is an up candle and Brown is a down candle.

Breadth and Volume studies

5 minute Volume Studies on TradeStation

• Sub-graph 1 is Dow Futures YM


• Sub-graph 2 is Advancers - Decliners


• Sub-graph 3 is Advancers volume - Decliners volume


• Sub-graph 4 is Advancers / Decliners


• Sub-graph 5 is Advancers volume / Decliners volume