Key Indicators and Their Uses

Above is an example of Market Structure Bias. When the market is making higher highs and lows, the bias is long. When the market is making lower highs and lows, the bias is short.

The Moving Averages on the above chart are the 20- and 38-period EMA's. The paintbar is a reflection of those averages. When the 20-period EMA is above the 38-period EMA, the bar is green indicating a possible long bias. When the 20-period EMA is below the 38-period EMA, the bar is red, indicating a possible short bias. The code for the PaintBar is below.








On the 5-Minute $TICK Chart above, the Red / Green line is the 20-Period EMA of the $TICK's (H+L+C)/3 pivot. The White Line is the 38-Period EMA of the $TICK pivot. The Cyan Line is the 2-Period SMA of the $TICK pivot. The PaintBar of the ES Futures is a reflection of the 20- and 38-Period $TICK EMA's . Green when the 20-Period $TICK EMA is above the 38-Period $TICK EMA, and Red when the 20-Period $TICK EMA is below the 38-Period $TICK EMA.

The PaintBar (Data2 PaintBar) and $TICK Moving Averages ShowMe Indicator (TICK Alert Levels) codes are below.

The Moving Averages on the 15-Minute Chart above is a 14-period EMA of the (H+L+C)/3 for the VIX.X and ES Futures.

The VIX.X PaintBar is Red when the VIX is above the average and the price is above the open price of the current bar; otherwise it is yellow. The VIX.X PaintBar is Green when the VIX is below the average and the price is below the open price of the current bar; otherwise it is yellow.

Even though the bias may be short, a possible long scalp trade is possible if the VIX is below the current bar's open. Even though the bias may be long, a possible short scalp trade is possible if the VIX is above the current bar's open. Otherwise, Red is a short bias and Green is a long bias.

The code for the VIX PaintBar (EMA VIX) is below.

The PaintBar on the ES Futures 1-minute chart above is Green when the $TICK 2-Period SMA is trending up, and Red when the 2-Period $TICK SMA is trending down. The code for that PaintBar ($TICK Pivot) is below.

An example of a long scalp when the overall bias is short is shown above. The VIX was below the current bar's open during this time period, and a long fade sclap trade when the futures made a new low proved profitable. Also notice that the $TICK was making higher lows at the time. Later, the VIX turned back to a short bias, and the market trended down convincingly.




Charles