This technique works off divergences.

Just chart the standard McClelland Oscillator in TradeStation (which is meant for daily bars). Remember you have to put Adv issues in data1 and Decl issues in Data2, then put SPX or SPZ3 in data3. Then put the McClelland in subgraph 4.

The important difference is this is not another price oscillator phenomena ---- the oscillator works off market internals - - - Adv issues and Decl issues, although in a fundamentally different way than OddBall (and more profitable way as of late). The McClelland Oscillator
based on Adv issues and Decl issues has been around longer than OddBall.

I have applied it to 60 min bars, so there could be a lot of room for improving it by using the T3 average instead of XAverage, or changing the length of periods for the XAverage, etc. Hopefully other list members could improve it --- maybe somebody will code it for backtesting although you would have to change around the function or the indicator so Adv issues and Decl issues could be in data2 and data3 - - - (but seems you would probably need Easy Language expert William Brower’s divergence engine).

For sells, I find it best to trail an entry stop like 1 point below the low after the CLOSE of each successive bar until hit.

For buys, you want to trail an entry stop like 1 point above the high after the CLOSE of each successive bar until hit.

>----- Original Message -----
>From: "John Blucar" <blucar@postmaster.co.uk>
>To: <omega-list@eskimo.com>
>Sent: Friday, November 21, 2003 10:34 AM
>Subject: A better method to trade SP Futures ? ?
>
>
>> In the spirit of MB, I'd like to contribute a chart and reveal the details
>of a method that shows a potentially great way to trade the SP Futures
>lately.
>>
>> Rather than a percentage sell point or buy point (ratio) of Adv issues
>versus Decl issues like OddBall, this technique works off divergence plays
>of a standard indicator included in TradeStation (which is actually meant
>for daily bars). It does use Adv and Decl issues to drive it, but in a
>different way.
>>
>> It could be further optimized perhaps using a T3 average instead of
>Xaverage or changing the length for 60 min bars or whatever.
>>
>> Since the omega list will not allow any files over 30 or 35 K, anybody who
>wants this gif chart (less than 50K) will need to send me an email
>requesting it.