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8oc

JB 8OC channel width as a LEADING INDICATOROne of my favorite indicators for short-term trading as well as longer-term investing is the 8 open/close relationship. As I have explained it in previous postings the concept and the coding are incredibly simple. We are looking at two moving averages eight SMA close versus eight SMA open. The concept makes sense logically because in a rising market there is pressure to the upside by buyers, therefore, causing the close to be greater than the open in most cases. The reverse holds true on the downside. Clearly, this is not a 100% relationship but it is a significant tendency. Given this tendency, we can help identify trend changes when they happen and in many cases before they happen. As the balance of power changes from bears to bulls, the difference between the eight close and the eight open becomes smaller and the channel therefore narrows. As the balance of power changes from bulls to bears the channel narrows and the trend changes. I have illustrated this narrowing tendency in the accompanying chart. The key, as I have stated earlier in postings, is to determine a profit target. Once the first target has been hit we take action to reduce our risk effectively to zero with trailing stops. Let me know if this is concept is making a positive difference for you in which case I will continue to share my trading experience and indicator usage with anyone who has an interest. No guarantees. Just simplicity. Just logic. Just a little bit of thought but not too much! Jake RBT
COINBASE:BTCUSD
by rulesbasedtrader
8OC and the S&P seasonal tradeI am working on indicators for Jake Bernstein. The 8OC is a simple and powerful indicator for viewing trends and also serves as the timing trigger for Jake's seasonal trades. 8OC gave us an early warning on the recent stock market decline. We triggered on the September S&P short trade this year and reached our first profit target easily. I am now waiting patiently for the next big seasonal trade in stock index futures. (Hint: it is a long trade)
CME_MINI:ESZ2021
by UnknownUnicorn28244186
My JB 8OC timing trigger on BITCOIN/USDIt's easy for a timing indicator or a market forecaster to look good in a trending market. As long as the trend remains bullish with low volatility virtually any timing indicator will be bullish and appear to be valid. The same holds true of down-trending markets. We all know that to be true. The real significance of any indicator or forecasting methodology is determined by how it performs in volatile and/or sideways markets. This chart shows bitcoin versus US dollar, certainly a volatile market and certainly a market that has had several uptrends and downtrends. When the chart bars turn green the averages cross and signal an uptrend. When they turn red that indicates the eight close has moved below the open and signals the start of a downtrend. As you can see the JB 8OC captures meaningful up and downtrends but also gives some back during periods of whipsaw. This is not unusual. Remember that with any indicator you must use it in time frames where it performs best. In my experience, JB 8OC performs extremely well in weekly time frames. I will also post a few charts showing JB 8OC in intraday time. Finally remember that every methodology, at least in my opinion, must contain three elements: set up, trigger, and follow through. As I have shown it in its present state JB 8OC is only a setup. We can increase overall profitability and accuracy and eliminate many losing trades if we add a trigger which I will show over the next few days. Jake RBT
COINBASE:BTCUSD
by rulesbasedtrader
2
My JB 8OC WEEKLY on UNG Nat Gas ETFThank you to those who have responded so kindly and favorably to my postings on the JB 80C indicator that I developed (quite some time ago). The JB 8OC indicator is based on a simple but powerful concept. Specifically, in bull markets no matter what the timeframe, closing prices of a given time bar tend to be higher than opening prices. In a bear market closing prices tend to be lower than opening prices. It's a simple supply and demand relationship. The JB 8OC algorithm takes this relationship into consideration, constructing an indicator to assess the relationship mathematically and visually. As in the case of many indicators, and in fact most indicators, there will be some choppiness but we can eliminate much of that choppiness by adding to the methodology a trigger which will filter out a good percentage of erratic trades. I will show a trigger in later posts if people have an interest in them. If so let me know. Now with regard to timeframe I realize that most traders want to trade very short-term time frames and I have no issue with that but my days of ultra short-term trading are over. I would rather work smart and take my time for bigger moves than work hard for smaller moves. Of course, it's a personal preference. The good news about this indicator is that it's adaptable to all time frames but remember- the bigger the timeframe the more stable the result. Best of trading. Jake RBT (rules based trader)
AMEX:UNG
by rulesbasedtrader
1
Platinum ETF PLTM 8OC WEEKLY triggers buy last weekPlatinum prices surged higher today as did all precious metals. My weekly 8oc indicator triggered a buy signal last week when the 8MA close ended the week above the 8MA open. Signals are only valid at the end of each price bar because they can move back and forth during the price bar but that would not be indicative of a change in trend until the bar is over. Generally speaking a first target for this method would be the range of the largest bar in the last 10 prior to the signal. In this case, for example,that was approximately $1.06 three weeks ago. Adding that to the closing price on the trigger bar would be our first target. Although the 8oc is not perfect (and nothing is), it is an effective way of spotting trend changes early in their inception. Jake RBT
AMEX:PLTM
by rulesbasedtrader