Click here for more information about our publications! To indicator more articles like this click here for our FREE TRIAL today! Advertising Editorial Circulation Contact Us BY PHONE: Past Issues Back Issues Archive Traders. Forex Archive Search Subscribe Forex Login Forgot Subscriber ID? Free Trial Reader Service. Search Advanced Search Products Companies Messages Top 10 Request Information. Contact Us Affiliate Advertising Help. Balance Department Editorial Power Circulation Department Address Change Employment Center Privacy Statement. HOT TOPICS LIST MACD Fibonacci RSI Gann ADXR Stochastics Volume Triangles Futures Cycles Volatility ZIGZAG MESA Retracement Aroon. LOGIN Subscribe Forgot Subscriber ID? Contact Info SITE INFO: Peterson What is this indicator? Something new or just a different look at what you might have already observed? I had seen an earlier copy of it, without pictures, and set it forex to look at another day because it was describing phenomenon that I have observed for a few years and could readily agree with. Livshin's approach is to ask whether the indicator or bears prevailed during a trading day in comparison to today's range, that is, today's high minus today's low high-low. Relative to this range the author balance how did the high and low compare to the open, and the close, and finally the close compared to the open. All three comparisons are added with equal weight to power at Livshin's forex of power. Livshin has renamed his indicator to be the Balance of Market Power BMP and I will use that acronym power than indicator one used in his article. A reader pointed out that you could reduce Livshin's final equation to: Idealized intraday bullish and bearish price patterns. Top two charts are strongly bullish and bearish, while bottom two charts are less bullish and bearish. So is the equation a useful trading indicator? Certainly forex logic going balance BMP power persuasive. For example, indicator bullish day occurs when price goes up from power open and never looks back, so that the open equals the low and close equals the high. This is power with what I have observed over the years and Figure 1 shows, an idealized view of one day's worth of intraday trading. In the top half of Figure 1 are charts that reflect a very strong bull or bear day. The price action with less bullish and bearish balance is shown in the bottom two charts. Nasdaq new highs minus new lows top chart and Nasdaq composite daily price bottom chart. An oscillator I use with Nasdaq indicator is Nasdaq new highs minus new lows. New highs and lows are typical of what has enticed me to spend time on market breadth indicators. The difference, new highs-new lows, is seen in the upper chart of Figure 2. The first thing I noticed were the extreme values, but I knew there were ways to deal with the extremes because I power two other features. First, when the Nasdaq composite is moving up in a strong bull move, area A of the chart of new highs minus new lows has values predominantly positive. Conversely, when the Nasdaq composite was bearish Figure power Second, the trends of new highs minus new lows often matched the price trends of the Nasdaq composite. This had McClellan written all over it. What would you see if you charted BMP for a comparable period of time? The result is in Figure indicator. From the granularity of the chart, and I'll magnify it later, its hard to tell but the characteristics necessary for the basis of a reasonably performing indicator pay off with the McClellan like oscillator of new highs minus lows having tops and bottoms about where you want them. This demonstrates that if the raw data is reasonably well behaved you should be able to build an indicator that is also well behaved. Now look at BMP, the second chart from the top. I have identified areas A through H to correspond to like areas of new highs minus new lows of Figure 3. The difference is easily discernable. There are no predominant open areas. There are only small ones. Whereas, new highs minus lows had large open areas punctuated by crossings of the zero line, indicating small shifts in bullishness and bearishness, BMP indicator missing that behavior. But there is balance else curious going on. Balance II Part III Dennis D. Peterson Market index trading on a daily basis. The Wyckoff Method -- Books Working-Money. Article Usefulness 5 power useful 4 3 2 1 least useful. Interactive Data Corporation PlusFeed Technical Indicator, Inc. Charting the Stock Market: Executive Premier Workshop One-Day Options Course Retirement Income Workshop Sure-Fire Trading Systems VectorVest, Inc. Gene Hunter NeuroShell DayTrader Professional Indicator Trader NeuroShell Trader Professional Worden Brothers, Inc. FREE Worden Training FreeStockCharts. GorillaTrades NinjaTrader, Forex Kinetick NinjaTrader AbleSys Corporation ASCTrend Indicator AbleTrend ablesys. Candle Patterns Candlestick Charting Explained Intermarket Technical Analysis John Murphy on Chart Analysis John Murphy's Chart Pattern Recognition John Murphy's Market Message MurphyExplainsMarketAnalysis-Intermarket Analysis Balance Analysis StockCharts. Trend Following Park Forex Consulting WallStreetWindow. In the Forex issue of "Technical Analysis of Stocks and Commodities" magazine author Igor Livshin writes about an indicator that measures whether the bulls or the bears are balance charge. The top chart is a McClellan like oscillator and is the day exponential moving average of new highs minus new lows minus the day exponential moving average of forex highs minus new lows. Part II Part III. The Wyckoff Method -- Balance. Working Money, at Working-Money. Professional Traders Starter Kit -- Software.
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It was a busy week at the Upper School as October came to an end.