siliconhippy
37 posts
msg #32552
- Ignore siliconhippy |
7/11/2004 6:47:02 PM
I was looking at www.prosticks.com and while their charts/customization is not great at all (nor the technical screens), the site has an interesting idea: including a "Modal Point" (red square within blue/white body) on an otherwise candlestick chart that indicates the most heavy buy/sell point (e.g. 50-70% of that day's volume.)
The theory behind the Modal Point is that it acts as a pivot, so taking it into account can enhance other tech indicators (support/resistance/breakouts.)
See the explanation under their EDUCATION section. Also this site gives you a list of its buy/sell signals history and the resulting P/L.
What seems intriguing is that the addition of Modal Points makes some false signals look suspicious, while providing earlier exit/entry than the usual candlestick or other tech indicator patterns...
Anyone interested in building a Modal Point filter on a candlestick chart? Since SF has red/black candlesticks, maybe the Modal Point can appear as a white square, or better, can be colorcoded.
An additional step then would be to build filters that draw the support/resistance/breakout line crossovers using the Modal Points(e.g. using the least squares method.) I believe that using RSI's (leading indicators) backed up by MACD crossovers (lagging indicators) could be useful. The Modal Points would then be used instead of other price points (e.g. close, or, say, weighted average, weighted average being a form of Modal Point.)
siliconhippy
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