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Channels with draw or linear regression, help on connecting, playback max and auto trends |
October 27 , 2004
Channel lines done with drawtool or linear regression
Help on connecting link
Playback Max
Support and Resistance Lines
Pesavento Patterns
Auto Trends
6:33 @Ensign_H: Welcome to today's class with the developers of Ensign.
Channel lines done with draw tool or linear regression
16:34 @Ensign_H: One of the features added to the program since last week is the ability to have a channel line draw through the range High and range Low for a regular Draw Line and for a Linear Regression Line.
16:34 @Ensign_H: I will illustrate.
16:35 @Ensign_H: In this chart we have the AutoTrends tool drawing the thicker Blue lines under and above the trends. I have used the regular draw line to draw a line through the middle of one of the shelves. The tool automatically drew parallel channel lines through the High and Low of the shelf bars.
16:36 @Ensign_H: Here is the property form for the draw line.
16:37 @Ensign_H: The new feature is the H/L Channel check box option. When check, the tool will examine the bars between the 1st and 2nd construction points and draw channel lines through the high and low points and parallel to the draw line.
16:38 @Ensign_H: Now the same feature is included with the Linear Regression draw line. The user selects the 1st and 2nd construction points to mark the range of the bars to consider, the tool puts on a best fit linear regression line, and draws the channels parallel to the linear regression line.
16:39 @Ensign_H: Both the draw line and the linear regression line will use the line style and colors from the Std Dev Channel entries on the line property form. That is why my channel examples are drawing in Green and Red. Now, I also had the Extend Multiplier property set to 1 so the lines extend beyond the 2nd construction point. This then makes the channel useful for the breakout either side.
16:41 @Ensign_H: Let me change the example to using Linear Regression for the same shelf.
16:42 trader: what is the extend multiplier for?
16:42 @Ensign_H: I happened to have the manually drawn line very similar to the best fit line, so the example did not change much.
16:43 @Ensign_H: The extend multiplier extends the length of the drawn line into the future. The line was draw between points A and B, and extend 1 makes the line twice as long by extending that distance again.
16:44 trader: ok ty
16:44 @Ensign_H: in this reposted example the red arrows and blue balls show the 2 construction points used for the tool. This H/L channel option should find immediate use by some of you.
16:46 @Ensign_H: Here is Linear Regression repositioned on the ascending data, and it gives you a nice channel to now watch for a break out to the downside. Linear regression finds the best fit, or average slope through the data, and the channel lines adjust to the high and low in that range of bars. Works pretty slick. And you can still use the standard deviation type of calculation to have those types of channels added if wanted.
16:48 prakso: when I click on the regression Tool I only get one line ??
16:49 @Ensign_H: ok, go to the tool property form and check the H/L Channel box and have colors and line style set for the Std Dev Channel properties.
16:49 @Buffy 2: what version has this
16:50 @Ensign_H: 10-26
16:50 @Buffy 2: tks
16:52 Shar: What's the difference between a Linear Regression line and the regular one you showed?
16:52 @Ensign_H: Regular draw line is manually drawn and stays on the construction points you use. Linear regression will stay horizontally positioned, but auto adjust the end point prices so it is a best fit line through the bars between 1st and 2nd construction points inclusive.
16:53 Shar: I see. Thanks.
Help on Connecting
16:50 @Ensign_H: Ok, on to next item.
16:51 @Ensign_H: We have added more help documentation for new users getting started.
16:54 @Ensign_H: The new menu item is shown in this image.....; Help Getting Connected.
www.ensignsupport.com/tutorial
16:54 @Ensign_H: This takes you to this web page on our staff web site. There are links for each data vendor, and some starting information for charts, playback, etc. You can click on the links in the above image now to navigate to see some of the pages. That viewer in this chat room is sure nice. You can use it to navigate the internet and see information in the viewer.
www.ensignsupport.com/tutorial/eSignalConnect.htm
16:57 @Ensign_H: This information was prepared by my staff based on the type of support questions they field in their support calls. The menu is in the new version. you can see it now in the viewer above. It is just a URL to a particular web site.
16:58 @Ensign_H: If you have feedback on ways to improve, let Paulo in this chat room know about the ideas or information you would think helpful. the project is on-going, so the pages will be added to and become more complete.
Playback Max
17:00 @Ensign_H: The last item to mention is we have had a request to have playback run at its maximum speed, (limited by CPU speed only) and so there will be a new speed selection on the playback form below the 10X entry and shown as Maximum. Now you will not be able to stay synchronized with others for a playback class using Maximum because each has a different computer than another but there will be some use to spin through a playback day as quickly as possible and watch it. This is different than just jumping ahead in the day as is done with a later Start time. The Maximum speed option will be in the next version of playback, probably released later today as 10-27 version.
17:03 @Ensign_H: Have received many compliments on the latest Trading Tips newsletter issue.... thank you.
Playback speed change
17:03 LW43: I have problems trying to alter the speed during a playback, eg, to fast forward through noon hour or something. Is there a preferred approach?
17:04 @Ensign_H: If any of you use the DTN satellite feed, there is a 10-26 upgrade you should upgrade to as it has resolved a couple reported access violation issues.
17:04 @Ensign_H: LW43, the speed change will kick in on the next minute period.
17:05 LW43: I've been using volume bars
echat voice
17:05 @Ensign_H: Last week we tested the voice feature in our stand alone eChat program and concluded that the first 18
17:06 @Ensign_H: to connect as clients would get great sounding voice, and any who connected after the 18th one would have lousy broken voice. Some attempts to improve on that behavior have not caused any change yet, so we
17:07 @Ensign_H: are still investigating and trying to understand where the bottleneck is. We have hopes for great voice for a much larger audience than 18 listeners.
17:07 diego: Howard, when I click the ctrl key, being in any program it activates the talk function, ie: if I copy and paste it activate twice. You told me about the win98 compatibility issue, but could this create extra traffic or delays? This happens with every user using ctrl on every program. May be useful an option in the setup to change the key or win98 compatibility?
Auto Trends
17:06 JW79: On Auto Trends, what is the difference between "Min size" and Min Bars"?
17:07 @Ensign_H: On Auto Trends we have two things we use to filter out the noise and see the more significant swings. One is Min Bars and what this does is require that a trend have at least this many bars. IF the value is set to 3 then the next swing high considered must be at least 3 bars after the prior swing low, etc. The other filter is for the size of the swing, and this we call Min Size. IF the value entered is 2 then there must be 2.00 points between swing high and swing low to be considered a swing to consider.
17:10 @Ensign_H: Some have the problem of the Min Size being 2 and trying to see any trend on a currency that trades with 4 decimals. 2.0000 points of swing just don't happen on those charts. What they need do is adjust the Min Size to reflect a typical move on the price scale of the chart, and for a currency an entry of 0.0010 or 0.0020 might be a much better filter size for the currency swings.
17:12 @Ensign_H: The Min Size can influence the number of trend lines drawn, as illustrated here on the 5-min ES chart.
17:12 trader: Howard is it possible to have fib clusters shown on a chart?
17:12 @Buffy 2: if you find a market has two swing numbers can put on two autotrends
17:12 @Ensign_H: In this chart the Auto Trends min Size is set to 4 points and 5 bars.
17:13 @Ensign_H: On this chart there are more trend lines drawn with the Min Size set to 2 points and 5 Bars. Each are great charts, but the tool is being used differently.
17:13 JW79: Great tool!!!!!
17:14 Shar: So it's a matter of experimenting with the different tfs, Howard?
17:14 @Ensign_H: it is a matter of what kind of trade you seek. In the b-line room many are scalping smaller point trades. IN the TradingTutor room they are after the 5-8 point trades, so the style is different and their stops are different.
17:14 Shar: That was one of my frustrating points of auto trends, it would keep moving.
17:12 LW43: Can you explain the breakout bars and S % R lines a bit?
17:16 @Ensign_H: S&R lines are support and resistance lines based on three prices. Typically the S&R calculations are made using the prior day's high, low and close. This gives support and resistance levels for use the next day, and is a formula often followed by pit traders. This has been around for the 2 decades I have been creating software.
17:17 LW43: the S%R option in autotrends is the same as the stand alone draw tool?
17:17 @Ensign_H: Some of the lines being watched are easy to understand, such as the prior day's High and Low, and prior days average point, which can be either the (H+L)/2 or the (H+L+C)/3. Then to these three key lines, additional levels are computed by taking the range and adding or subtracting from the average point, etc. You can check out the formulas for each S&R line calculation in the help documentation.
17:19 Shar: My S&R lines stay put. Is this correct? or why can't they move like the Time lines do? Same with Fibs.
17:20 @Ensign_H: S&R should stay put. Yesterday's high, low and close used for the calculation are not changing.
17:20 hobo3: how do you adjust auto trends for a time frame?
17:21 @Ensign_H: hobo, the auto trends probably will not need any change for Min Bars. But a swing on a daily chart would obviously be a different parameter than on a constant tick chart. So you will just have to look at the chart and its scale and see what looks like a typical swing size and use half of that amount as the Min Size parameter.
17:23 hobo3: thank you
17:20 @Ensign_H: Fib levels stay put for the swing you marked.
17:20 Shar: Ok. thanks.
Pesavento Patterns
17:21 @Ensign_H: IF you want dynamic marking of swings and the Fibs on those swings then use the Pesavento Patterns tool which does all that for the Fib levels on recent swings.
17:21 trader: Howard is it possible to have future fib clusters shown on a chart?
17:23 @Ensign_H: Trader, use the Pesavento for Fib clusters, it can show clustering for prior 3 fib levels automatically.
17:24 trader: how exactly not familiar with that feature?
17:25 @Ensign_H: here is example of Pesavento Patterns tool with the diagonals removed and the Fib levels enabled. You have the clustering on the right side. Lines of equal length belong in the same calculation.
17:26 trader: whats fib 1 and fib 2 ?
17:27 enzo: can you post the properties for that
17:27 @Ensign_H: Fib 1 shows fib levels for most recent swing. FIb 2 shows 2 more fib levels for prior 2 swings, for a total of 3 fib calcs. The 3 calcs can give you the clustering.
17:29 @Ensign_H: So the 1.272 Fib level is coming from a swing way back off left side of chart.
17:29 trader: so fib 1 show previous swing high fib levels and fib2 shows from the previous high?
17:29 @Ensign_H: here is a bigger view Let me turn some off so we can see better where each comes from
17:32 @Ensign_H: This is Fib 1 and it is based on the small retrace. So 100 marks top of this move, and 1.618 is extension of the move, which the last trend exceeded. Now I will turn off Fib 1 and add Fib 2
17:33 trader: how did you project such a small range for that? Thought it would be from swing high to low
17:35 @Ensign_H: Fib 2 is showing 2 fib levels, and I can see one of the calcs is done using the two significant swing points that I have highlighted with the yellow circles. And you have some clustering here. This levels at price 1119 is apparently the 100% or swing high for the point marked with the yellow circle as the swing high. AND it looks like it is 0.618 level for an even bigger swing, whose High swing top is off the left side of the chart. On the levels at 1127 one of these is the 1.272 of the swing which leads back to the swing top marked in yellow there is a 1.272 diagonal like connecting back to this swing top.
17:38 @Ensign_H: Anyway, this is a power tool with lots of built in intelligence at finding and marking swings and fib levels automatically.
17:38 diego: the rounding of the fibs of Pesavento tool is +- 1 tick of the actual number or a % ?
17:39 @Ensign_H: To be labeled with the nice fib number on the diagonal, the swing has to be plus or minus based on % not on a tick or two. Let me turn the rounding off to show actual percents.
17:40 @Ensign_H: on the swing level we have discussed to the high, the actual percent was 1.28 as shown, and for labeling purposes this is a 1.272 level.
17:41 trader: so basically it depends on the number of bars used for each swing that will alter the clustering
17:41 diego: ok, many thanks
17:41 enzo: can you tell what is the ideal min. size min. bar to have for the pesavento
17:41 @Ensign_H: the Min Size and Min Bars can affect which points are considered important swings and which are too small and are ignored as noise. Depends on what kind of trade you seek. The example is 5 points. Using a smaller Min Size marks many smaller swings, and adds clutter in my opinion, let me show
17:43 tradinoncoffee: now that is a chart...
17:43 @Ensign_H: Here is Min Size at 1 point, and so all the small chop is marked with swing lines. Perhaps like watching the eddies in the river and failing to know which way the water flows.
17:43 trader: Howard my es 5 min had more cluster why is that?
17:44 trader: shows many more than yours?
17:45 @Ensign_H: your 3 fibs are using smaller swings as shown on your chart. See were the 100 % is on each fib level as it points to the swing point used for that fib calc.
17:45 trader: swings are determined by min size correct?
17:45 @Ensign_H: you have biggest one at 1116.50 and you have 2nd big swing back to 1120.50. You have the smallest swing back to 1122.75. Those are the 3 recent swings used for the fib clusters.
17:46 trader: ok understood. What is the min size and min bars ?
17:46 @Ensign_H: they are the 3 swing bottoms on the chart you posted. and the swing top used for all 3 is the high at 1126.75.
17:47 @Ensign_H: we already went over that, it is a filter so we find the more important swings.
17:47 @Ensign_H: with Min Size at 0 any ripple counts. Change it to 1, then 2, then 3 and you will see some of the chop dropped
17:48 trader: why is it only projecting down and not up as well? Can it do both?
17:48 @Ensign_H: it will project UP when you head UP. Right now last swing is down so it projects the retrace of the prior up moves.
17:49 trader: oh I see. But by the time the market starts moving up there will be some delay for up projections correct?
17:50 @Ensign_H: Well I think that is enough for one day.... thanks for coming
17:50 JW79: Great class
17:51 @Buffy 2: thank you Howard
17:51 trader: so if setting of min bars is 5 it will only project 5 bars later is that correct?
17:51 @Ensign_H: yes trader, the delay is we have to meet the min bar requirement and 38% of the Min Size requirement.
17:51 trader: thks so much Howard great stuff..;-)))
17:51 @Ensign_H: welcome, have a good week trading. bye
17:52 trader: you too
17:52 enzo: thanks have good night
17:52 Shar: Thanks Howard.