Mean reversion

AMGN was so technically efficient today. Long Entry (green bars) in the early part, then broke down below SuperTrend and Short Entry ( red bars ).

Lower MPD band to VWAP

Go Long when large volume picked up while prices remained below lower MPD band. Earlier penetrations didn't have large volume.

Target is at VWAP. 50 cent profits for less than one hour's trading.

Breakout

This is Ebay against $INDU on 17th August. Ebay was going higher and higher and closed up for more than 6%.

Ebay had been a strong stock prior to this. The breakout happened late 16th. It has to be an overnight trade.

How to join the rally on the 17th?

Entry

Take the long trade whenever $INDU completed a downturn and up again.

Note the followings:

• $INDU was never OS(oversold) in multi-MACCI settings
• Ebay's rally was followed through with high volumes and Ebay was never OB(overbought) in the context of the MPD, in otherwords, Ebay never went outside the upper MPD band

Spot the difference

Two charts for YMU06 on the same day. The first one is based on Dow cash market sessions i.e, without pre-market hours.

The second one is plotted on regular futures session, i.e including all of out-of-market actions.

UK and EU raised interest rates and as a result FTSE and Euro markets suffered.

Dow also fell heavily in the opening bar but quickly regained strength and closed higher for the day.

What are the differences in PaintBar signals...?

Regular session chart

• It reflects the main sentiment of the day
• No RedBar so no shortsale signal
• Timely Long entry with GreenBars, if taken near VWAP
• Just one trade - Go Long

Cash market session chart

• It printed RedBars and stopped out twice
• Long entry was late

Why?

Is it just curve fitting? No, it may well be highlighting the importance of pre-market hours information.

The regular session chart would have prevented another Shortsale entry which were taken based on cash market hours chart.

It is better to check with regular session chart if the Opening bar trade is to be taken.