Compression Project

Maybe not required, but someone correct me if I'm wrong, I believe there are physicists out there working for the banks. We have them were I'm at doing studies trying to figure out traffic jams!
If someone told me about all this stuff when I was in college picking a major....sigh

Good question about moving stoploss to even. I asked myself this yesterday as well. I think most people scale their profits, so they close half and keep half open with the stoploss at B/E to not exit too early. Otherwise, it did kick me out a few times yesterday too early, but prevented heavy loss.

Are all indicators better on constant rangebars - seems like it...







remember to keep clicking on the thumbnail until you see a clear full-size image, in my forefox browser I have to click three times

Great thread. The application of physics to trading seems logical with terms such as momentum, support, resistance etc. Signing up.

I use SP500 futures as a general barometer of risk-ON vs risk-OFF in the global markets. This is roughly the inverse of the USD index. Risk-OFF (flight-to-safety) usually means a flow back into USD and YEN. This observation is important for me to understand what is driving exchange rates.

The chart below shows how compression increases as a move progresses. In other words more and more volume is required to move price as opposition is encountered. More energy or effort is being compressed into smaller ranges with less results.

By contrast, when most everyone is in agreement about a new direction there is much less opposition and this shows in low compression scores.



After 31-Aug you can see we have had a 2 month risk-ON direction, the dollar weakening, and pretty much everything else strengthening. I am watching now for a new direction confirmed by low compression scores.

SP500 futures (ES) daily chart. If the down channel holds this rally then a drop to 1000 is possible before the end of this year.

http://www.forexfactory.com/showthre...30#post4484730



my goodness, you have made this far more complicated than need be


explanation is above, exactly why prices behave in the manner they do within the compression stage and why prices react in the manner they do once compression is complete









a few examples





http://www.forexfactory.com/showthre...288142&page=73

....... and a few more from friday NFP

Well it took nine days of testing but the upper side of the down-channel held the SP500.

The last four days are tracking on the same angle as previous steep descents.

Just two weeks remain to reach my estimate of 1000 by the end of the year. August's big fast drop to the channel floor is being used to provide the slope and vertical size for my estimate.


Keep clicking on this chart until you see the full size image.
It takes me three clicks in Firefox to see full size.

Robdee

such a great thread..
why not keep continue this method..??