And just as an aside, it ranks right up there as one of the finest drama movies
ever made … simply brilliant acting, and the storyline is chilling. IMHO, it ranks
right up there with “The Godfather”.
Blood in markets? … here’s the link of what the world’s largest crude oil hedge
fund trader says about crude oil, from an August 31 ZH post … directly below.
https://www.zerohedge.com/commodities/oil-market-completely-broken-says-
worlds-largest-commodity-hedge-fund-trader
While other markets VIX ebbs and flows, sometimes ridiculously from low to
high extremes in very short time periods, crude oil simply remains bat shit crazy
[BSC] … unlike other markets, IMHO the key to profits in oil rests with changes in
VIX over the short term relative to a slightly longer term … search engine VIDYA
CMO and you can get a detailed explanation of how VIX is incorporated into
EMA’s … for trading purposes, crude is so volatile, that I’m not sure anything
longer than m15 or m30 matters, in terms of learning information about price,
volatility, or any kind of trend … it simply changes too fast.
From an algorithm trading perspective, it’s very tough to distinguish between a
“scalp” or “day trade” … time might be the only element, cuz it certainly ain’t
simply price … the lines here are very blurred indeed. Unlike other markets,
where we have the HULL 120EMA, I don’t see where it matters in crude oil
… instead, I use 2 VIDYA CMO 1.1 lines, along with dumb money [MFI / Money
Flow Index]. The first VIDYA IS CMO PERIOD = 23, SMOOTHING PERIOD = 7,
PRICE = MEDIAN PRICE … colors are UP SLOPE = LIME, DOWN SLOPE = RED
[This is the longer (SLOWER) time frame VIX parameter] … The second VIDYA
IS CMO PERIOD = 8, SMOOTHING PERIOD 3, PRICE = MEDIAN PRICE … colors
are UP SLOPE = PLUM, DOWN SLOPE = YELLOW [This is the shorter (FASTER)
time frame VIX parameter]. Along with MFI OF PERIOD = 8, the crude chart
looks like this directly below [from Friday].
Crossover FAST OVER SLOW VIDYA can generate buy signal, and after longer
declines of approximately 15+ minutes, a change in the FAST VIDAY SLOPE
FROM YELLOW TO PLUM can also generate buy signal for more aggressive
traders … flip it for short trades … I’ll have more during the week as I trade this
puppy. The VIDYA CMO 1.1 is available for download over in “Download Links” in
the right hand column, in mql4 code format, ready to be installed directly into the
MT4 … it comes from my shared file folder at box.com and is guaranteed virus
free … it’s totally FREE, no gimmicks of bullshit here, simply download it and
install if you don’t already have it.
Directly below, this week’s 20 Day Range MA’s for selected pairs.
A pickup in ranges for FX, thanks to the BOJ intervention in USDJPY, but I expect
that to wear off … “Stock Bellies” look increasingly vulnerable to further downside
on expanded ranges, which isn’t a good sign … only Spicoli knows how much pain
he has in store for most Americans … my guess is a lot more!
Onto the week, where we’re one week closer to winter for Europe … OUTTA HERE
… “The future’s so bright I need 2 pairs of sunglasses 😎😎, and my own Brinks
armored truck” 💓!! … Onward & Upward!!
-vegas
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