First thing to note is this is a resource hog and it takes considerable CPU processing time, that came as a surprise. I have filtered my charts down to 2 and sometimes one large monitor. Of late all my trading has been long term and I have had no need for using more monitors to get more time frames in front of me. It is a bonus when you can eliminate lower time frames, providing you have the discipline to set some kind of alarm when price reaches an area you are interested in.
Fair warning, the charts I am about to show are full width of my monitors and this could well cause some scroll bars to come into this blog, I will just have to see how it looks and if it need fixing I will depend on some of the web guru's who are here.
A look now at the S&P500. Ah, scroll bar has come. If you all dont like the scroll bar I can reduce the chart size. In fact, let me add the same chart below this one with the reduced size and you can say which you prefer.
The details are all lost on the second file, but for the moment I will continue and find some sense in all this. The two black horizontal lines are near term support and resistance and between them is where a large range setup and held the majority of the trading for a long time. We now have broken out of the range and last week I passed a comment to a friend that this thing is long over due for a deep pull back. Our conversation went further and talk of the real crash being long over due came to the fore. In case some of you dont get that part, the S&P is made up of the top 500 US companies and shows an over all view of that market.
Any company shows a strong share price if the company is doing well, has good sales, hiring new people and expanding etc. But, and here is the real fly in all this. There is no positive economic news from the US and the company share price in my view is being bought into by institutions who are using FED money to get short term gain and the share price is in no way reflected in real economic numbers. Same can be said for Europe.
Keep in the front of your mind all the time, when price is set to collapse, it must first be run up. When price is due to become bullish it must first be marked down. What I see now is price rising with no good reason why it is going up, other than being marked up. Needless to say I would not be long the S&P nor short either, yet.
A closer look on the weekly and see what else we can see. Scroll city again, but at least you can see it.
First thing to pop out is we pretty much hit 2000 and fell back sharply. The last leg looks very weak and taking a long time to get anywhere. Since the break out of the trading range it has taken a lot of effort by the bulls to get prices moving higher. Sensible traders will wait and see where support comes in, if it comes in.
Lastly for the S&P is a daily chart.
Your first glance at a closed candle tends to be your best analysis. What can we see here?
How about the obvious sharp fall followed by break of near term support. Next support is 1900 and the media at that stage will whip up a storm. Our unanswered question is, where will the buyers come back in, or will they come back in at all?
Lets take a look at Oil on the weekly.
With all the mess in the middle east happening the reaction in the price of Oil is.....range bound. There is no panic or interest in Oil trading for higher prices. One reason is Russia, they need a 100 dollar per barrel price and the west is determined to hurt their pocket. But even prior to the mess kicking off, look at the historic price. It has not been rising much and if anything there appears to be potential for more downside coming in. The last two attempts to push price higher failed.
Onto Oil on the daily chart.
We see price gained a little but the reaction by the bears was strong, there is no upside on this chart. At present we are at support and price will dance around here for a while and likely fall further. Look at where the last real buying came in and there is a target pro money will aim for. Getting an entry might be entertaining.
Oil on the 8hr chart. Yes I did say 8hr. One thing I do like about the platform is it has many time frames not seen on MT4 and it is useful to have.
More good information here, note the last attempt by the bulls. It was very strong, sudden and did not have the legs to get anywhere. The bears are clearly in control still and we now see price at near term support, look at current price and then scroll left to see historic demand. I doubt this will hold, but doubts wont make you money and for the moment take note of the price range setup by the buyers and wait.
Last Oil chart on the 15min.
All big moves down and not a bull to be seen. Most commodities need lots of time to get moving and when the move getting in is not easy if you trade near term. The only thing I can add to this chart is price now likely wait for NY open.
Final chart, usd/jpy on the monthly.
Look carefully and you will see current price is at a major support and resistance level. Anything can happen here. In is Japanese policy to reduce the value of their currency against the US Dollar. So far this is working for them and this level is where we may see some big action happen by their central bank. If they dont see price move higher, they may help it on its way. Currencies are manipulated by very deep pockets and dont be under any illusions of countries not acting in their own interests.
There was strong buying off the 80 level here, a possible sign of more upside.
Closing note on the platform, so far I have only used it for live orders, hard stops and manual close. I do not see a take profit setting and it may be that a limit order is used for that purpose instead. The information about the platform and all other web platforms is very sketchy and none I found gave a crystal clear brief breakdown on their use.
The platform is very poor for marking up charts, note all I have posted here do not have anything drawn or written on them. The tools for annotating are poor and do not have enough adjustment. I will have to take a chart pic and use some other program for drawing on them.
I have found the data feed for the web platform is more reliable than MT4. There are also less times when getting and order filled stalls.
Hi Doc.
ReplyDeleteI learned about your blog in RTM.
I have to say that I "strongly dislike" FXCM's TSWeb platform.
TSII - Marketscope for Windows is way better.
However I'd say that for web charting, TradingView.com is worth trying. It has many tools.
I tried numerous web platforms with the intention of being able to travel around and maintain some level of trading activity. All of the platforms were lacking in some way and as you have seen, I returned to MT4.
ReplyDeleteMS windows was being emulated on my computers via Mac OS, but I ended my time with that OS and moved everything to Linux and MT4 works fine when used with emulation.
A few web sites have stocks that I like to keep an eye on and also on some commodities. I only use them for longer time frames and looking at the big picture.
Punjab National Bank is currently trading at Rs171.4, down by Rs3.4 or 1.95% from its previous closing of Rs174.8 on the BSE.
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