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  • #104462 Reply

    Mark G.
    Participant
    Registered On: July 16, 2015
    Topics: 1
    Replies: 0
    A few questions here regarding indicator lines on 2 attached charts from yesterday’s session please.
    I’m purposely asking very basic questions because I want to make sure I clearly understand the “purpose of indicator lines” displayed on Tick Tools chart and Accumulation Index chart
    I also want to make sure I’m correctly interpreting the condition of these indicator lines in relation to price …..for example a condition where line direction diverges from price direction.
    mzeTickTools
    Attached “Tick Tools” Chart 
    1) What is Name of “Magenta /  Blue Line” ?
    2) What is Purpose of “Magenta / Blue Line” …….and How should it be used?
    3) At <span class=”aBn” tabindex=”0″ data-term=”goog_731687403″><span class=”aQJ”>11am</span></span> the line color changed from Magenta to Blue.   What is the significance of this color change from Magenta to Blue?
    mzAccumulationIndexes
    Attached “Accumulation Index” Chart
    1) What is Name of “Red / Green Line” displayed in Price section at top of chart?
    2) What is Purpose of “Red / Green Line” displayed in Price section at top of chart …….and How should it be used?
    3) At <span class=”aBn” tabindex=”0″ data-term=”goog_731687404″><span class=”aQJ”>1pm</span></span> the line color changed from Red to Green ……,What is the significance of this color change from Red to Green?
    4) Is there any significance when  “Red / Green Line” crosses Above or Below Price?
    5) Is this “Red / Green Line” Similar to  Magenta / Blue Line” in Tick Tools chart?  Or is “Red / Green Line” completely different than Magenta / Blue Line” in Tick Tools chart
    THANK YOU!
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  • #104501 Reply
    mcm-peter
    mcm-peter
    Keymaster
    Registered On: May 12, 2015
    Topics: 0
    Replies: 1

    My answers are in Bold and Blue below


    A few questions here regarding indicator lines on 2 attached charts from yesterday’s session please.

    I’m purposely asking very basic questions because I want to make sure I clearly understand the “purpose of indicator lines” displayed on Tick Tools chart and Accumulation Index chart……

    I also want to make sure I’m correctly interpreting the condition of these indicator lines in relation to price …..for example a condition where line direction diverges from price direction.

    Attached “Tick Tools” Chart

    1) What is Name of “Magenta /  Blue Line” ?

    This is the accumulation Index

    2) What is Purpose of “Magenta / Blue Line” …….and How should it be used

    3) At 11am the line color changed from Magenta to Blue.   What is the significance of this color change from Magenta to Blue?

    Accumulation index is specifically designed to show emotional accumulation or distribution. This is extremely powerful during a consolidation So for example if the market is consolidating and accumulation index is trending up that gives you a pretty high confidence that the break will be to the upside. Similarly, if accumulation index breaks to a new high before the market breaks to a new day high – that is something to be quite aware of – especially if short. When it shifts from magenta/red to Cyan/Green this indicates – shift to confirmed accumulation or confirmed distribution. While the move above and below ZERO
    are important for this tool – they can be noisy and this function helps filter out the noise.

    Attached “Accumulation Index” Chart

    1) What is Name of “Red / Green Line” displayed in Price section at top of chart

    That is the same accumulation index shown on tick tools

    2) What is Purpose of “Red / Green Line” displayed in Price section at top of chart …….and How should it be used?

    3) At 1pm the line color changed from Red to Green ……,What is the significance of this color change from Red to Green?


    See 2 and 3 above.


    4) Is there any significance when  “Red / Green Line” crosses Above or Below Price?

    No

    5) Is this “Red / Green Line” Similar to  Magenta / Blue Line” in Tick Tools chart?  Or is “Red / Green Line” completely different than Magenta / Blue Line” in Tick Tools chart


    T
    his is the same line as standard accumulation index shown on tick tools. it is shown here in concert with its components and other MCM indexes so that you can have more color about what may be driving the market – such as if money is being added to the market or not. Or execution quality via the rich or cheap trading tickets

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