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Pesavento Patterns Marking Swings, New Line Markers - Virgin POC, Fib Levels, Coloring Bars by Time Group |
November 15 , 2006
16:33 Ensign Howard: Welcome to training class this Wednesday afternoon, Nov 15th. Hope you all have enjoyed experiencing the new highs in the Dow the past few weeks. Hope you all enjoyed the article published in last month's Trading Tips newsletter about the Richard Smitten books I reviewed. Since we last met, I have been informed that Mr. Smitten has passed away. A reminder to us all that life is fragile, and precious, and we all need to live life fully because we do not control when the final chapter gets written, and at times it seems like the end happens in mid sentence.
16:40 Ensign Howard: A few months back I spent a week in the mountains two different times and had major creative spurts to add lots of new features to the program. A list of these enhancements can be read on the What's New page, particularly the entries for the month of September.
http://www.ensignsoftware.com/whatsnew.htm
16:41 Ensign Howard: All of these features, and a sprinkling of additional ones in the past few weeks have been well received and polished off now. So we are increasing our encouragement that stragglers who have been reluctant to upgrade should do so.
Pesavento Patterns Marking Swings with HH HL LH LL and =H =L
16:43 Ensign Howard: In responding to a couple of users earlier this week in their efforts to accomplish a visual with the Pesavento Patterns, I ended up adding the visual as a new feature to the PP study.
http://www.ensignsoftware.com/help/features.htm#Labels
16:44 Ensign Howard: This chart shows an example of the swings on the chart, and the new visual is to label the swings with tags of HH. HL, LH, and LL, which mean Higher High, Higher Low, Lower High and Lower Low. (=H and =L are tests of last swing H or L) This is a quick way to show the footprint of price action, and is used by many traders.
16:49 Ensign Howard: On the Pesavento Property form is a check box option for Auto Min Size, and when checked the program will use about 1/20th of the scale range as a default size for Min Size. The Min Size parameter is part of the filter logic for deciding is a swing is too small to be considered a new trend. A new swing must exceed the size listed for Min Size (i.e. minimum swing size) and the Min Bars is another filter to eliminate a spike, wherein the new trend is blind to quick moves that do not have more than the Minimum Bars count. So the new swing must have at least the Min Bars count and the Min Size distance. (If you wish all possible swings marked, use 0,0 for these settings.)
16:52 Ensign Howard: I think PP is very useable to have the box for Auto Min Size checked so a percent of the range is used for the minimum size, and use 3 for the Min Bars. That is a pretty generic and useful setting that works quite well of the majority of charts, and is the setting I use for PP.
16:53 Ensign Howard: There may be times when I want to over write the Auto Min Size with a specific swing size for a specific chart, such as 5 points for the e-Mini. Usually I am trying to make the PP less sensitive and mark only the more major swings.
16:52 Kim: so Min Size is a number of ticks
16:54 Ensign Howard: Kim, Min Size is NOT a tick count. Min Size is a price change, so an entry of 5.00 is 5 points on the chart scale, like the price change from 1600 to 1605. If the tick size is 0.25 then a 5.00 price swing would be 20 ticks
16:53 Kongfuzi: Can the PP swing line be turned off so that it doesn't show?
16:56 Ensign Howard: Kongfuzi, you can have just the labels and no trend lines by changing the Line Style to be blank on the Up Trend and the Down Trend rows. The Show box still needs to be checked.
16:57 Ensign Howard: Kim, there is no override for the min bars. The override for the manual entry of the Min Size is the box labeled Auto Min Size.
16:57 Kim: yes okay I get it thank you
16:58 Ensign Howard: thx, sniffy, was just going to do that type of example
16:58 Sniffy2: yw Howard
16:58 Ensign Howard: In this property form, only the labels will show on the top of the swing points
16:59 Ensign Howard: the HH, HL and =H will show using the color white and the LL, LH, and =L will show using the color cyan. The LBL will show the text AND the dot together, and the dot is not optional
17:00 Ensign Howard: thx sniffy
17:00 Sniffy2: np
17:00 Ensign Howard: Have we answered all questions about the PP study and the new auto labels?
17:01 Kubes: great work Howard....real value in this new feature for me
Virgin POC w/Fuzzy Lines
http://www.ensignsoftware.com/help/features.htm#virgin
17:02 Ensign Howard: This example shows another small change to the Virgin Point of Control in the Price Histogram study.
17:02 Ensign Howard: Recently we increased the number of Line Style selections on the tool and study property forms to have some fatter lines that have a gradient transition to the chart background color. For lack of a better term, we have called these fuzzy fat lines.
17:03 Ensign Howard: The example shows how the Virgin POC line can be drawn using a fuzzy fat line, and it gives a very appealing visual of these important Point of Control lines on the chart.
17:04 Ensign Howard: By having the option for Virgin POC checked, the POC line stops when it is touched by price action on any subsequent day. A POC that is not yet touched continues to be extended to the right side of the chart. The information from this tool is not new, just the ability to show the VPOC with a fuzzy fat line is new.
17:05 Ensign Howard: Any questions or feedback about this study?
17:06 Shar: Nice, thank you Howard.
17:06 Kim: What does the restart value refer to?
17:11 Ensign Howard: Kim, restart is ability to restart the histogram at a particular time of the day, such as 930 entry will start new histogram at that time of 9:30
17:08 panda: Howard can you add sound alarm as bar completion on chart?
17:12 Ensign Howard: panda, you can add a Study Alert that is sounding the alarm on the Bar Flag First Tick of New Bar.
17:12 Kim: and what does Decay refer too?
17:13 Ensign Howard: Decay is used by the Rainbow feature that can be show with Price Histogram study. It controls show quickly a hot color cools off and returns to the back ground color.
17:13 Ensign Howard: Let me show example of Rainbow image
17:15 Ensign Howard: This is just another variation of the price histogram concept, where the more time the price is dwelt on, the hotter the color. This shows as a flame that extends rightward, and cools off with the passing of time. The hot colors show where potential support and resistance areas will be. You also have a good example in this chart of the hot spot from Nov 10th was the support that the market retraced to on Nov 14th and then resumed its upward march to 1400
17:17 Ensign Howard: Any more questions about the Histogram study?
Fibonacci Levels Tool
http://www.ensignsoftware.com/help/features.htm#Styles
17:18 Ensign Howard: The next feature to cover in class today is the addition of another style to the Fibonacci Levels tool. The Fib tool is very popular and used by many. The examples show different properties being checked or unchecked to give different styles.
17:19 Ensign Howard: First example shows the Fib lines full width from the beginning of the first swing point and extending rightward.
17:20 Ensign Howard: Scroll the screen down to seen 2nd example where the trend is marked with a trend line and the Fib lines begin from the 2nd swing point and extend rightward.
17:21 Ensign Howard: 3rd example is the new style where the Fib lines are only shown in the right side margin, which thus keeps the chart cleaner by having fewer lines on the charts. The 100% line which is a base line back to the first construction point will be drawn back to that swing point as shown in the example.
17:22 Ensign Howard: Scroll the view down again and see the option to move the left and right side labels to an above/below the line arrangement.
17:24 Ensign Howard: The label location being left/right or above/below can be applied to any of the styles listed above, so you have lots of combinations with the tool's presentation.
17:24 Ensign Howard: Any question about the Fibonacci Levels tool, its properties or styles?
17:25 Ensign Howard: The examples showed the use of the fuzzy fat line selection, and there are other cool selections for gradient fill between the Fib levels. This tool is one of the most flexible for how it can be configured for colors, styles, lines, levels, labels, extensions, etc.
17:26 Ensign Howard: Scroll the screen down again to see examples of the Gradient Line styles, which was the topic of an earlier class, so we will not repeat ourselves today with gradient fills.
17:28 Ensign Howard: Can someone show an example of using some of these features in their charts today? Some good examples were posted yesterday.
17:29 cherokeeruby: This uses fuzzy line and gradient line fill on S&R also the HH and LL -- but would like them bigger and bolder
17:29 Ensign Howard: Thanks cherokee, very nice
17:29 @Buffy2: I used the HH HL lbl and also heard so many say they loved it -- many charts were posted in daily folder with it too -- and it hasn't even been out 24 hrs.
17:30 Ensign Howard: Great buffy, that is music to my ears.... I like it when features get used and appreciated
17:30 Ensign Howard: Thanks sniffy
17:30 Sniffy2: Very useful stuff Howard, many thanks
17:34 olli: What is that bar? Looks great
17:35 Sniffy2: Colored band is the 62/78% retrace marked with Howard's new banding line - see properties posted
17:36 olli: very beautiful
17:36 merlin: very nice sniffy
17:36 Sniffy2: Howard is amazing, I am only mildly exciting :-) but thanks anyway.
Coloring Bars by Time Group
18:05 cherokeeruby: Buffy you showed me this -- gives me this
18:05 cherokeeruby: Bar colors one minute too early -- it counts midnight as the first minute instead of 12:00 to 12:01 and the first minute -- counting 11:59 to 12:00 as the first minute
18:08 Ensign Howard: So you want the minute bar on the 15 boundary to be colored same as minute ahead of it so its color is last bar of the group instead of first bar in new group
18:08 Ensign Howard: ok, 1 minute
18:08 cherokeeruby: yes
18:09 cherokeeruby: The bar on the boundary ended at the 15 min mark. It is the end of the 15 minute period. It should be colored the same as the previous 14 bars.
18:10 Ensign Howard: So the 14:45 bar you want to be orange instead of green
18:10 cherokeeruby: yes
18:10 Ensign Howard: OK, try the suggestion of the # on Line B being 3.9333333 -- then show me picture
18:12 Ensign Howard: Got more than wanted -- but on right track
18:12 cherokeeruby: correct
18:12 Ensign Howard: try 3.94 for number
18:12 cherokeeruby: How did you come up with that number?
18:13 Ensign Howard: 1 minute less than the full boundary is 1/15th ahead of 4 which is 3.9333333. But that rounds down and got caught in the modulo and we got extra bar. So lets round up to 3.94
18:14 cherokeeruby: Works, but is it going to change color halfway through formation?
18:14 Ensign Howard: Excellent, should work perfectly for you
18:15 cherokeeruby: thanks
18:15 Ensign Howard: welcome
17:47 Ensign Howard: Any more questions? if not, we will call it a day.
17:48 @Buffy2: Thanks so much Howard
17:48 Shar: Thank you Howard.
17:49 Ensign Howard: Thanks for attending class. Good night - have a good week.
18:03 @Buffy2: night Howard
18:03 cherokeeruby: bye
18:03 sputnik: good night and ty
18:24 Ensign Howard: Our statistics show we have customers in 52 countries
18:25 @Buffy2: Bet you never thought that big when you first started Ensign 25 yrs ago.