Public Charts Area - Legend/ Key - Explanatory

Legend to the Public Charts Area 

Last Updated 12/10/2019
Stockcharts.com doesn't allow for much room to provide explanations, and notifications, in the public charts area, so I've created this page in order to provide a detailed explanation.

Please read my disclaimer, and carefully review all the information provided below, so that you can gain a better understanding of my charting style, as well as to what all those crazy multicolored lines mean! 

The #1 chart located at the top of my Public Charts Area: The #1 chart is usually a 1-10 min chart, and lately I've found that the longer term - 10 min - chart view seems to work better...

As long as the short term chart it working, which is most the time, I'll chart it for entertainment purposes, if nothing else, but unless you're a monster day trader, you're probably better off trading longer term targets, rather than jumping in and out of trades intra-day, and this point becomes even more relevant as Volatility increases.

 You'll find me charting the #1 chart, in real time, at every opening bell. You'll also find my notes on this #1 chart, in the annotations, and current $VIX alert (if any), and jokes, and whatever else I feel like putting in there. Sometimes the #1 chart will become clogged with too many notes, and lines, but I try to keep it legible. Occasionally I'll switch out the old chart, for a fresh new chart, or a different time line, so the #1 chart is worth watching.

$SPX 10 min. view - This is the current view of the #1 chart in my public charts area. Not too messy. Wave B (or 2) is bearish, and you should familiarize yourself with the Elliott Wave Basics at least, because then you will know what I'm expecting the next wave to look like.   

When the short term chart breaks, I may replace the (#1) short term chart with a longer term chart, and you'll find longer term charts already in my public charts area.

You'll find many chart views in the public charts area, with different timelines, and these are switched in and out on a regular basis. I may have an oil chart in there one day, and a gold chart the next. I may include financials, or $SOX, or whichever sector is moving the broader market. If you want me to include a certain sector, I may willing to do that, but it may require some hefty recurring monthly payments.

Alternate chart views Bullish vs Bearish: At times I may provide alternate chart views, so that it's easy to tell where a trend may break, or I may be uncertain which outcome is the correct one. It's common to have a bullish outcome, and a bearish one, and I'll often let the $VIX determine, which is correct.  I may give my opinion on which outcome I believe is correct, but I try not to make too many predictions. It's better to let it play out, and trade the charts accordingly, than allow your personal bias (emotion) to determine your trades. If the bullish trend breaks, and support breaks, as the $VIX continues to break out, then it becomes obvious which trade is the correct one, and to trade it accordingly. Trade what you see. For instance: Let's say Oil is trading above the 50 day moving average, at clear support, and it's found support above my green line, and I even have a green arrow on it.... if that support breaks, you better know what to do, without me having to put a red arrow on it.
It's up to you, to know how to trade, and to know your own risk tolerance.


$VIX Alerts: The $VIX - manipulated or not - is our number one sentiment indicator, and at the time of this writing, you'll see the $VIX alert is set at resistance @ 13.75. The $VIX is currently trading at a historically low level, so as of Dec 2019 I remain very bearish, even as we see recent market highs being tested.

$VIX breakouts point to risk off, so it's important you watch this indicator in a complacent market, just as it's important to recognize a $VIX reversal, when fear comes out of the market, at a market top. At this time I don't provide $VIX charts in the public charts area, but you may occasionally find one included in one of my daily market updates. The $VIX may seem confusing to some traders, but it's one the most important thinks to watch. 

My short term outlook: For my short term outlook, you should check for my daily market updates on the front page of this website. For intraday updates you can follow the #1 chart - located in the Public Charts Area. You can also follow me on twitter, if you like, and you'll find the "don't follow me", button in the side menu. Twitter is mostly for entertainment; it's a place for me to blow off steam, troll some fools, show-boat, expose "conspiracy theory's", play classic rock, rant, and otherwise, kill time when the market trades aimlessly sideways, which is most the time.  

Twitter Warning: I'm pretty liberal with the (twitter) block button, so don't pester me there, and especially in the morning when I'm updating the charts, and preparing the daily update. I'm happy to answer questions, but I'm not there to pump your position, or to hold your hand, and opinions - unless based in technical theory - are not appreciated. I can't tell how many people I've blocked from my twitter feed, but It's probably in the 100's. The internet is full of trolls, and bots, and idiots, and I don't waste a lot of time trying to weed out the good from the bad. If I block you by accident, let me know, and I'll consider unblocking you.  

My long term outlook: Very Bearish, and that's the way it's going to stay. It's been over 10 years, since the great bailout. Of course money printing, and market bubbles can continue... so don't base you're short term trade on my dreadful looking 20 year charts. For example: The 20 year $NYSE chart located in the Public Charts area. Markets can, and do overshoot.

Tell me what to do!:  I don't give to many real time alerts. It's up to you to know how to read the charts, and trade accordingly. Charting, and calling out trades, is way too much for any one person to handle, and especially during those rare times when I'm looking for the next support level, in a market crash; for instance. It's just not going to happen.

Charts Legend:


Blue lines - trend or channel

Purple lines - consolidation pattern in a bearish range, or pattern

Black Lines - Alternative and or hypothetical trends

Black, (or Grey) dotted lines (with or without an arrow) signifies possible price actions, or direction. 

Pink - Key support

Pink line with a circle - identifies a stop-hunt (same as hey support, but with added weight).

Pink (price circled) - sometimes I'll circle a price label - for instance; the SPX 3000 level, or the DOW 30,000 level, if it seems this is what everyone is watching. This level may also coincide with a moving average, so this could also be considered a stop-hunt.        

Green line -  obvious generic support - although the market commonly takes out support,  before breaking out again. This is what is commonly referred to as a shakeout.

Red line - resistance - although more often than not you'll see resistance taken out, before you see a reversal. When that happens you'll often see the red line changed to a pink stop-hunt. 

Orange - minor resistance

Green arrow - buy signal - although the market commonly overshoots to the downside, and if support breaks on heavy volume, you use this arrow as a contrarian indicator and sell. 

Red arrow - sell signal - although more often than not you'll see resistance taken out, before you see a reversal. Markets tend to overshoot more and more these days.

Pink arrow is a buy, or sell signal with a tight stop. Pink arrow may also identify the break out point, or broken support (after the fact).

Numbering and Lettering is associated with Elliott Wave Theory, and I use a simplified method, rather than the official labeling method.

Fibonacci tools (lines) are usually in grey, unless for instance - if we see a reversal at a key FIB target, in which case I may highlight it, green, or red. depending on the circumstances)  


Trend Lines with Arrows: These are intended to show reversals.

Looking at the current 1 yr. DOW - DCS (daily candlesticks) - chart below:

Example #1.

Lets say the market  is rallying in a bullish parallel channel, as it was the plunge protection team was calling in at the Dec. 24th, 2018 bottom.

The first black line with the arrow shows where momentum was lost in Feb., while the second black line (arrow) shows exactly where the bullish channel broke, back in April.  From there we saw, a "Sell in May", followed by a pullback to a Key Fibonacci target, and the Pink line shows exactly where the bullish reversal occurred back in June. It also broken out above the 200 day moving average, so that reversal was pretty obvious.

Example #2: This is shows where the most recent uptrend broke







 

6 comments:

  1. ...
    2 comments:

    sharetipsinfoApr 17, 2012 03:11 AM

    Nice blog,
    Just wondering what people think about current market situation? Are we ready for another phase of recession? How our stock market are gonna react? Lets share our view in this cool blog. What Say?
    ReplyDelete
    Anthony AllynApr 18, 2012 07:35 AM

    Thanks for the compliment sharetips,

    I wonder if I can set up a separate page on this blog dedicated to comments. I'm going to look into that, so folks can find comments easily.

    Concerning the market. I think once investors realize the fed is out of ammo, and nothing can be done to stop crash part II, we will finally see real panic.

    From an Elliott Wave Standpoint the bulls are running out of options. Once a triangle pattern completes that's the end of the larger combination pattern.

    I think everyone is tired of trading sideways, while the media and the government continue to lying to us about how strong the recovery is going to be.

    Thanks for stopping by,
    Anthony Allyn
    ReplyDelete

    ReplyDelete
  2. 2 comments move from the Forex Page:

    May 10, 2012 11:30 AM

    Followed your charts with interest for almost 2 years, now that you've stepped into fx I just might subscribe.

    One thing I've learned about fx is that E-wave is a little different here. Major moves are all 3 wave affairs. Think about it and it makes sense, because currencies travel in a range (unless one goes extinct).

    I've been charting U/J for a couple of years now and it has moved along with my count so I thought I'd throw my long term count at you. In wave 4 triangle now with 5 to soon (soon is relative, this is monthly chart) get under way.
    Monthly:
    http://www.tafool.com/Charts/usdjy051012M.png
    Daily:
    http://www.tafool.com/Charts/usdjpy051012.png

    I'm not saying you're wrong, just sharing what I see.
    TAfool
    ReplyDelete
    Anthony AllynMay 10, 2012 2:22 PM

    Hi TAfool,

    First off - Thanks for following my blog. When I started this blog I was still pretty green, but I'd bet I've put in 10k hours charting since. I'm pretty confident, but triangles are tricky. I go by feel a lot, and it sure felt like wave e panic the other morning - looked like the word was about to end, and now the Euro is rallying as forecast. Only time will tell.

    You're welcome to join the website, but Forex is going to remain here. I like trading leveraged ETF's, commodities, and beaten down stocks now and then.

    You may be right, wave E can end in a triangle in that situation. It's too bad my charts don't go back further. I'll take another look once I'm rested, but if it's a wave e reversal we should know by morning. Take Care

    Regards, Tony

    ReplyDelete
  3. Very nice and helpful information has been given in this article. I like the way you explain the things. Keep posting. Thanks.. Free Stock tips

    ReplyDelete
    Replies
    1. Thanks for the positive feedback. Means a lot. I should check comments more often.
      AA

      Delete
  4. I am following you on tweeter for many years and you are the best.
    Any thoughts on TMV (short Treasuries) going into the Future?
    Thank You

    ReplyDelete
    Replies
    1. I think now is a good time. Too bad I can't post a chart here. Ask me on twitter @3xtraders

      Delete