Support Board
Date/Time: Tue, 26 Nov 2024 13:23:17 +0000
Post From: Rotation factor
| [2014-05-01 14:21:04] |
| cmet - Posts: 551 |
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I would like to see this added too. This is from James Dalton's Mind Over Markets. It is as follows: Rotation Factor "The Rotation Factor objectively evaluates a day’s attempted direction. Each auction rotation is measured step-by-step, allowing the trader to discern overall daily directional attempts. The method for assigning a value to each time period’s auction rotation is relatively simple. If the high of the current time period is higher than the previous period’s high, then the rotation is given a +1. If the high is lower than the previous period’s high, then it is assigned a -1. Similarly, if a time period’s low is higher than the previous period’s low, then a value of +1 is added. An auction bottom that is lower than the previous period’s low receives a -1. And if both periods’ highs or lows come out even, then no value, or 0, is assigned. The same process is performed for each subsequent time period, ultimately resulting in a number that can provide a good indication of day timeframe sentiment. It is important to keep in mind, however, that the Rotation Factor only answers one of the two Big Questions—that is, which way the market is trying to go. Before any conclusions can be drawn, you must also determine if the market is doing a good job in its attempts to auction in that direction." Reference Image: http://s10.postimg.org/ws5agxfc9/rotationfactor.jpg Example: http://s27.postimg.org/e8gz87rtv/rotation_TY.jpg |