Hot Copper Charting and Chat, page-216

Wow! @Toastman,@Jako8557 and @wilfran1pm thanks for the team effort in responding to the NoDemand Bar / No Supply Bar question! Superb info and much more than I expectedbut just what I was hoping for. After reading through your posts, and then afterscraping little pieces of my brain off the floor, I mapped it out last nightand had a crack at it this afternoon – below are a couple of charts with theresults.

Here’s thelogic, indicators and settings I used that give the results shown on theattached charts. I’ve written it so all these can be adjusted on the flythrough the indicator settings panel so I can play around and find the bestcombination – this is fresh out of the oven so have done none of that yet:

> 14 period HullMA for trend direction. (Hardly any lag with this ozzy indicator)

> Averagevolume used is a simple 20 day MA.

> 10 periodATR for average spread of the bar.

> True rangefor the spread of the bar in question.

> Two typesof No Demand Bar with slightly different settings, and two types of theopposite No Supply Bar:

1.  A “low spread” bar – maximum 90% of averagevolume, or lower than the two previous, 85% of average spread (10 period ATR),and must close in bottom/top 60% of current true range of bar.

2. A “very lowspread” bar – max 90% of average vol, or lower than last two bars, 60% ofaverage spread, and must close in bottom/top 90% of the TR of current bar.

The (potential)No Demand bars are shown in orange and marked “ND” and confirmation bars areshown as red down arrows. I’ve set a 5 day window for the confirmation period,but already noticed things like the ND bar followed by an upthrust before adown move which takes longer than 5 days to play out- very interesting. The (potential)No Supply bars are shown in light green and marked “NS” and followed up withdark green arrows if confirmed.

So I’veloosened up some of the parameters but tried to account for the very low spreadbars that might close quite high on a No Demand bar for example that Jakomentioned. And as I said these can all be tweaked.

Jako, it wouldbe great if you could sanity check this first draft and highlight where it hitsand misses. The charts background is shaded light grey for Hull (14) uptrendand darker for downtrend- which will help explain if a No Demand bar is notshown in what is being filtered as a downtrend for example. Or if you have achart you are familiar with I could compare signals against that.

Here’s a coupleof daily charts:

APX March through to now and KGN May through to now…