|
|
|
|
|
|
|
tools to improve what is basically a throw of the dart. This ''gut feel" trading approach is not for everyone. |
|
|
|
|
|
|
|
|
Neal: Maybe you should make wild claims or something. |
|
|
|
|
|
|
|
|
Neal: Seriously, will your software help day-traders? |
|
|
|
|
|
|
|
|
Larry: Definitely. And even swing traders are day-traders when they get in and out. WINdoTRADEr provides a lot of information on the character of the markets. It uses color and/or numbers to show where the tick volume is. It's almost like hearing the yelling on the floor. |
|
|
|
|
|
|
|
|
Neal: Can you give a specific example and how you would identify a good trade? |
|
|
|
|
|
|
|
|
Larry: Figure 21-1 can't be fully explained in a sentence, but it shows March 99 TBonds for parts of December 29 and 30. The boxes and numbers in the upper left are for December 30, and the columns of numbers in the middle and right are a five-minute bar chart for part of December 29. The bar from 127-10 to 127-14 under the fourth letter at the top (I) is a high-volume squat (it had 37 ticks and was also a key reversal bar). Five bars later (the third J) was also a high-volume squat (41 ticks and a key reversal). |
|
|
|
|
|
|
|
|
These bars were highs of the day when they formed. They showed the market running into resistance, with a lot of volume. They should have caused the market to reverse. The fact that the market fought through this heavy resistance was a clear indication that the market would move to higher levels. As a day-trader, I would have stopped fading the market when the first squat failed and would have had a long bias the next day. If I were a swing trader who decided to go long December 29, for |
|
|
|
|
|