THE MARKET MECHANIC BROUGHT TO YOU BY ODYSSEY TRADING GROUP FOR 08/02/ 2012
Welcome to the Market Mechanic daily blog
TODAYS ACTION: The market gapped open lower our software and system was a little late the party but did generate 2 profitable sell signals. The 1o minute DTI turned positive at 1:50 PM signaling that the sell off had come to an end and our software and system did generate 2 profitable buy signals to take advantage of the rally.
10:10 AM sell signal emini S&P price 1360.50 The set up, with the 5, and 10 DTI’s all with negative readings, the trigger; on the 20 minute chart with the cross and close of the 20 minute DTI from positive to negative a sell signal is generated. Subsequent low 1349.25.
12:15 PM sell signal emini S&P price 1353.75 On the 5 minute chart with the cross of the TI agg above and close above its 70 line and then back below and close below its 70 line indicating the market coming out of an overbought condition in a bear market and with the 10 and 20 minute DTI’s and the 10 minute TI agg all with negative readings a sell signal is generated. Subsequent low 1349.25.
2:20 PM buy signal emini S&P price 1357.50 On the 5 minute chart; the set up, with the 5,10 and 20 minute DTI’s all reading positive and a positive 5 minute MACD, the trigger; on the 5 minute chart a yellow neutral bar is followed with are bullish green bar, a buy signal is generated. Subsequent high 1362.25.
2:35 PM buy signal emini S&P price 1358.50 On the 5 minute chart; the set up, with the 5,10 and 20 minute DTI’s all reading positive and a positive 5 minute MACD, the trigger; on the 5 minute chart a yellow neutral bar is followed with are bullish green bar, a buy signal is generated. Subsequent high 1362.25.
AFTER THE CLOSE: Only the 5 minute TIndex finished positive for the day but more importantly the faster moving DTI from the 5 minute through the 30 minute finished the day in positive territory, suggesting the market has potential to move higher.
ABOUT THE MARKET MECHANIC
The Market Mechanic has developed 3 proprietary indexes and oscillators: the Trend Index Aggressive (TI agg), the Delta Trend Index (DTI) and the Trend Index (TIndex). These 3 proprietary indicators combined with the Directional Movement Index (DMI), the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) give us several distinct, high probability set ups that are used to day trade the emini S&P market. These indexes and oscillators are applied on time frames from 5 minutes to 60 minutes (5, 10, 15, 20, 30, 45 and 60) and these set ups are traded on all time frames. The final product of the combination of these proprietary and non proprietary oscillators and indexes is a mechanical system and methodology for identifying entry points into the market that completely sidelines emotion and allows its user to concentrate on the money management part of the trading equation.
The philosophy of the Market Mechanic is not to predict the market but to anticipate likely market scenarios that the market will produce on a daily basis and the best way to exploit these opportunities. These set ups are designed to profitably and consistently exploit these market scenarios.
Markets are opportunity generating machines; our software and methodology strive to take advantage of these opportunities as they arise and provide its users a consistent and reliable profit making trading set ups.