QuestionsCategory: e-Tick-ToolsDo blue dots tracking with price on ES tick tools chart represent a Moving average? If yes….then how should MA dots be used with buy & sell extremes and x-tick signals? Thanks.
Mark G. asked 2019 years ago
1 Answers
mcm-petermcm-peter Staff answered 2019 years ago

Mark thank you for your question. A reasonably detailed discussion of how these enhancements should be applied can be found in our recent post: http://mcm-ct.com/blog/market-flux-capacitor-in-overdrive-crash-potential-and-techniques-to-trade-one/
 
Additionally, YES when the proprietary MA crosses below a support trigger such as a Selling Extreme this is indicative of impulsive continuation. Similarly for a resistance trigger such as a Buying extreme. Normally a moving average is rather difficult instrument from which to get a signal of much reliability or value. However, the objective here is to determin wich side of teh capitulatory behavior the market is committed. Ofcourse we have the accumulation index and other tools too, but the reality is we wanted to create an easily readable abd relibale mechanizm from which to measure both anything wrong in a current trade decision or the need to make a decision based on continuation with a breakdown or breakout of an emotional trigger - as the case may be. 
 
The approach, while simple and elegant require years of development to produce in that an appropriate averaging process neded to be in place to allow an average price mechanisim to hang inside chopping and cyclic market behavior - by essentially travelling slowly and sideways yet be very senstiive to momentum price movements so that breakdown or breakouts of cycle levels, buy or sell extremes are definably represneted because the averaging mechanisim for price become very sensitive. Without this mecahnisim the confimations wudl nt be reliable or useful. However, we are quite happy with the work we developed for use with impulse cycle confimration and implemented a similar technique fro buy and sell extreme breakdown confrimation or rejecton, This is even more important with buy and sell extrmees that occur with X-TICK whcih represent the strongest actions adn emotions of market participants fver hte last 15 to 20 years, in that reactions from these types of market locations can produce extremely large moves - as occured today. However, today's X-Tick sell extremes got the confrimation via the mcm MA and also combined with stop run warnings in real time to indicate that downside follow through on both X-Ticks were likely.