Experimental Indicators for 10-minute Alan Box
I've collected the following indicators as a template for those who are using
the 10-minute Alan Box. I call them experimental due to the limited amount
of real-time trading with them. However, the principles of their use is sound
and based on methods you've probably already used.
- Alan Bars DYO
This DYO highlights Bar 1, Bar 8, and Bar 11 (see Alan's
Trading Discussion). Also highlighted are the 2pm, 4pm, and 4:15 bars, which
I find useful, but are not integral to Alan's method.
Note: The times are for
PCs set to US/Eastern (NYC), so if your PC is in a different time zone,
please change accordingly. Additionally, you can unclick any bars you
don't want to see or delete the entire DYO if you want.
- RSI-21 with Fisher Transform
RSI is a useful indicator for trending
price. I've added the Fisher Transform, which heightens the "cyclic" aspect
of RSI. This was done primarily to capture the price action from Bars 1 through
11 as they follow the often flat Globex price.
- For those accustomed to using Bline Sto35, it is included as its usefulness
when "decked" is well understood.
- Short Cycle 3-bar Stochastic
During my time with Alan's method, the
immediate and information-packed use of bars means that for an over-sold/over-bought
(OS/OB) oscillator to be useful, it must react quickly, yet not be so noisy
as to create confusion. For that reason, I tested and have settled on this
3-bar, HLCO/4, smoothed stochastic.
- Short Term Bias MACD(3-10-5)
To some extent, this indicator confirms the stochastic, but catches the eye
more dramatically. Additionally, it can show divergences (like the Sto3), and
has the benefit of the 3-10MACD/5ma spread as an intermediate indication between
the long RSI-21 and the short 3-bar Sto.
USE
Add this template to your Alan Box chart. Use the RSI/Sto3 "slings" as
you would normally, as well as look for divergences in the Sto3 and MACD, and
pay particular attention to a "decked" RSI or Bline.
amg