Some new posts about Market profile and auction theory…
Posted by MC on Jul 23, 2009
http://www.tradersbase.com/forum/broker-platform-reviews/882-investor-rt-professional.html#post6541
and
http://www.tradersbase.com/forum/broker-platform-reviews/882-investor-rt-professional.html#post6542
Is anybody watching my levels??? Keep an eye out and get in the chatbox too.
Posted by MC on Sep 11, 2008
Here’s how the levels played out today. I gave added levels (red & green lines) in the chatbox as well. The levels given worked all day long, including pegging both the bottom and the big down move prior to the EOD explosion. Again the white dots were rock solid signals and the red dots worked depending on your trading plan. The red oval was a great level if you’re a pure scalper, you got to dip in over and over. As you can see these work in chop or trending days making them very noteworthy! 
Levels for tomorrow coming later… 
How did my daily key levels do from last night?
Posted by MC on Sep 9, 2008
How did my levels do from last night? 
The white dots are where the levels worked on the button. The 2 red dots are not on the dot but provided a divergence trade if that’s in your repertoire.
One could argue that the 5 minute cleans things up a bit and lets the candles form. Trade whatever timeframe fits your trading style but I would suggest marking these levels on your charts. 
I’ve not cut these posts off from the general population yet but as soon as I’m healed enough to be consistent on posting I’ll shut this down except for those that are posting valuable content or that have paid the $5 monthly donation. These aren’t magic but they have proven themselves to me time and time again. If you have the right discipline and have created a setup off these levels you have plenty accuracy to be net profitable. 
Daily Key Levels For Sept. 10th 2008
-YM-
High = 11,484
POC= 11,418
Low = 11,301
-ES-
High = 1258.25
POC = 1249.25
Low = 1230.00
How to use MACD? What can it tell us?
Posted by MC on Aug 7, 2008
When it comes to MACD…12,26,9 is the stock and most widely used setting. Often stock settings have the most eyes and are the most valuable when it comes to indicators. In my example…12 is the slow EMA, 26 is the longer EMA and 9 is the smoothing line. The moving lines you see on plotted MACD are 12 (slow EMA) and 9 (smoothing line), the 0 horizontal level represents the 26 (longer EMA). In the background on MACD you’ll often see a histogram, this measures the difference between the slow EMA and smoothing lines and plots this data in an easy way to watch momentum change incrementally. Both pieces of MACD are useful for spotting momentum shifts and divergence.
With 3 lines of interest plotted you can have 2 major crossovers.
1)Slow EMA crossing the fast EMA (0 line) (red circle & arrows)
2)Slow EMA crossing the smoothing line (black circles & arrows)
Most use the slow EMA crossing the smoothing line as indication of a momentum change. Sometimes on longer time frames like the above weekly there is no divergence needed for a mid term reversal and when slow and smoothing cross its a big move. See the below link for an article I wrote on divergence.
http://www.tradersbase.com/forum/technical-analysis/469-whats-divergence-diverging-indicators.html
Note: The most recent down move has built bullish divergence (green lines) where price tested lows yet the MACD as well as the MACD histogram failed to even come close to their prior lows. This was a VERY bullish indicator. I would have preferred the volume had been lower on the 2nd test giving a 2nd and more important diverging indication though. That would have told me there were less sellers at a prior key level and we didn’t get that so I’m not a total believer of this rally yet. I will become more bullish if/when the same level (or lower) has very low volume aka: brings out very few sellers. I will become full bull when the red downtrend and structure resistance are cleared and legitimately defeated.
Bulls on parade today, but don’t forget the bigger picture guys!
Posted by MC on Jul 17, 2008
Still plenty of resistance ahead on the markets overall. DJI has no divergence on a weekly going into this move so perhaps the Nasdaq is leading off it’s divergence. Either way Nas has been the stronger market all the way in this bear really. In case some didn’t catch the tip on the charts…there is a nice ticker to help you spot divergence on highs and lows. 
Again with the UVOL/DVOL…YES I think it’s important.
Posted by MC on Jun 11, 2008
I am starting to love the UVOL setup here. I also run ADVN/DECN, TRIN for the extremes and VIX for an inverse look at the markets. Price action still rules, but these give a good glimpse into the health of the markets IMO. 
So we can see here nothing but price action is always 100% correct, otherwise we’d all be rich. But if you look at UVOL/DVOL expansion or contraction in relation to each other you can often get clues on which is the right side of a trade. If you have a bigger chart I’m sure the moves on the indices are even more clear in relation to this. I had to have things somewhat scrunched up to get it to post and capture right.
Notice Thursday. I just saw something I didn’t catch before.
Wicked divergence, basically hidden selling. So you have UVOL smashing DVOL all day but most the day was consolidation. And it ended with a surge of UVOL but very light price action. So there ya go, there’s another use for this that I’ll add to my bag o’ tricks.
Enjoy,
MC
Looking through some old thoughts of mine…
Posted by MC on May 12, 2008
“WWE looks like it may have based and try to pop in the near term. There is some solid resistance overhead though. I wonder what the overall market is gonna do, we may be near the base of the downtrend if we get positive confirmation tomorrow with any buyers and go on to break the channel.”
I’m learning alot by looking back at past thoughts and realizing patience is VERY important.
Here’s what we have…the blue dashed line is where I made the prior post on another site. You can see the bottom was put in as I called, but the “near term” was anything but reality. Thus my “patience” comment above. LOL
A bit after my post we had a test of the lows with macd divergence as a bullish signal. Also note this…basing under a long term MA like the 200ma here is a bullish sign often. Lots of eyes on that level and when it breaks it often goes BOOM!
In this case they gapped above the “supply zone” which is the blue boxed area and 200sma. They do this to accomplish 2 things, first this keeps those that bought in during consolidation from selling since they now are pretty well in the green and less fearful. This break away gap also keeps those not in yet from buying in at that level. The herd will buy in after it’s gone much higher, they just can’t take it anymore and think they are missing out. The laggards get in just in time for the hand off, pros take profit and the drop can begin. LOL
OH…who is “they” you might ask? That’s the big money, they run the show and they are good people to follow if you know their tricks.
Another tidbit besides the gap above “supply zones” from my arsenal…
Many focus on a 50/200ma cross. That’s great if you want to see what already happened. It’s often late if accurate at all (see the blue arrow). Try using a 21ema and a 200sma for better triggers. Why…easy, the short term is EMA because we want the most current data to be weighted and faster to fire a signal. The long term is SMA because that will reflect the more smoothed out and broad term data.
Ok and now a final note on WWE…the volume stepped in Friday as support at the 200sma/gap fill. That’s a low risk long for a bounce play right there. Gap fill backed by 200sma…double support backed by volume. 
Another post I seemed to have over looked I recapped using the link below. I picked the SPY mid term reversal 1 day before it happened. Fade the herd baby, don’t be afraid because news tells you to be. Be smart though and don’t try to catch a falling knife.
http://www.tradersbase.com/forum/market-index-chatterbox/371-index-chatter.html#post3130
Have a good night!
MC
