QuestionsCategory: e-Tick-ToolsWhat are the DOTS on the tick tools charts?
Anonymous asked 3 years ago

I see horizontal lines that look like support and resistance levels. What are the large DOTS on them? 
Sometimes I see a square DOT and sometimes a round one? Is there a difference?

1 Answers
mcm-petermcm-peter Staff answered 3 years ago

 

eTickTools Confirmation Boxes

eTickTools Confirmation Boxes

The e-Tick Tools methodology is to measure a number of facets of emotion. When emotion reaches statistically significant levels versus the market probabilities a price tracking line is rendered. This is the thin line. If the market is in the midst of a move tis tracking line can move to the next relevant emotional measurement price level and therefore, can follow prices. This is something we very much want ti to do as it give time to research the trading environment and prepare. When an extreme is confirmed it means that capitulation has most likely completed. At this time the price tracking line becomes significantly more important as it is confirmed and there most likely remains a shortage of seller or buyers as the case may be since the available inventory has been capitulated.

george fuks replied 3 years ago

based on what is explained here , looks like etick tool boxes have failed several times along Friday (06/05/2015) ?? how we can use them ? when to follow and when to ignore ?

mcm-petermcm-peter Staff replied 3 years ago

This QA thread goes into details about that: http://mcm-ct.com/question/trying-to-grasp-the-buy-and-sell-xtreme-concept/One of the core things to keep in mind is that these tool tell you WHERE an inflection point is high likelihood of occurring in real-time. Inflection points can go on both directions. The points certainly represent lower than normal risks for either direction in that the implications at all times are clear and the option can very quickly be considered wrong with simple rules and understanding. In the case of ES – Its good to look to things like accumulation index and possibly larger market structure potentials or timing. Once you make a decision in the case of X-Ticks we like to see around 3 ES points (handles) room held to maintain confidence. In the case of normal non-X buy and sell extreme – tighter tolerances often are logical.When a buy x-treme, for example, breaks out…a successful retest of if is a clean place to clearly define a potential long entry point for follow through up. Also, that kind of situation is usually clear with regard to a reversal having failed and sellers having been overwhelmed. This is a very important concept. In the case of a buy x-treme, since we know more than the price and since we know sellers capitulated. The implication is that when we overwhelm those sellers by more than a few ticks, even professional sellers who are shorting when other sellers are already capitulating are being overwhelmed. Trying to think about it as a battle between consensus market participants and more sophisticated participants who fade them really puts into perspective what is happening when an x-treme reverses or get broken out. When it gets broken on more sophisticated participants are being vacated from positions and that is usually more lasting than when a bunch of consensus operators are.