Your Xmas Gift.......come and get it

[HamzeiAnalytics]

The idea for the Directional Volatility was first presented at a http://www.OUGA.com meeting by my long time friend and former TradeStation Solution Providers Tech Advisor, Miles Dunbar.

I coded it and played around with it a bit, before offering to our Diamonds Users last summer. This is an excellent addition to your daytrading toolbox.

Here it is offered to you Free of Charge till February 1st, 2005. Consider it as your Xmas Gift from HA.

Here is where you download it from: HamzeiDV.efs

A how-to pdf document will be posted shortly.

In a capsule form, this is how we use this indicator:

We all know that prices have cycles but did you know that volatility has cycles too ? What DV does here is to identity when the volatility has collapsed and thus the next big volatile day is coming.

Look for low levels of blue curve... they usually precede a big day in the asset you are following.

DO NOT USE LESS THAN DAILY DATA COMPRESSION, as interday volatility is not a mystery, it is an "U" -- that it is highest at the Open and the Close. That fact we know.

The best days for intraday trading are the big directional trades, that is buy the open and sell the close, in case of up move, or vice versa, sell the open and buy the close, in case of a down move.

Keep in mind DV will NOT foretell you the direction of prices, only the odds of volatility expansion. You need a good momentum/trend indicator (like CI) to detect that. As matter of fact, the combo of CI and DV indicators have shown an unccanny ability to give us a heads up for a potential upcoming big day and its direction.

[HamzeiAnalytics]

re: your emails

We had a number of emails regarding the DV indicator already. Thanks for your participation and keep 'em coming !!

The main question seems to be regarding the correct application of this indicator. We'll have a how-to PDF ready for you shortly. Our typical answer was/is as follows:

The DV Indicator is an excellent addition to you daytrading toolbox. It forewarns you of an upcoming long bar day for the asset to seek to daytrade. Typically, as a daytrader, you are looking for a day that opens at the high or the low and closes at low or the high of that day. If you can harvest 70% plus of that move, you do well daytrading the markets. This indicator tries to pinpoint those opportunitiies for you. Look for a low reading of the BLUE curve. The big bar day is coming up in a day or two.

This indicator WILL NOT TELL YOU THE DIRECTION. THAT YOU CAN ASCERTAIN FROM A ZERO-LAG MOMENTUM/TREND INDICATOR such as our CI Indicator.

[HamzeiAnalytics]

Timebomb Date

The Timebomb Date is not cast in concrete. It can be extended. In all probability, as we did for CI & DCI Indicators, it will be. This is the reason:


The plan is to to add the Directional Volatility (DV) Indicator to our HA toolkit currently offered by eSignal, in their next Release (7.9), due some time in Q1 '05. If there are any delays in the roll-out of Release 7.9, the timebomb for the trial versions of both TradeStation and eSignal codes will be extended accordingly.