One really important way traders develop an edge is by quantifying the odds. The best way really understand the odds – or more properly stated, the probabilities – is to use the good ol’ scientific method. Get your curiosity on. Ask a question. Develop a hypothesis. Run the numbers, examine the results, draw your conclusions and then act accordingly.
Some basic study questions might include things like “for my instrument, how often does price do X when volume is Y?” Or, “what time of day is a new high or new low most often made? Least often made?”
The answers to these questions lie in the data. But where do you get that data? Why, the Acme Market Study Pack (AMS), of course. This pack frees the data that is locked in the bars on your chart. Free your data, free your mind. You can do it, and it takes only a few clicks (watch the screencast here). The studies in this pack are complimented by the data export features in the Acme Volume Profile, and are the first of several more to come.
Initial Balance Breakout
Many traders are aware of the concept of the initial balance (IB). Basically, the IB is the range of prices in the first “X” number of minutes of trade. Traditionally, the IB is 60 minutes, but many traders use additional durations either singly or in combination with each other.
Some interesting questions can be answered with this study – how often is the IB range is broken? At what times? To the high or low side? How far did the breakout travel? On what day? In fact, these few examples barely scratch the surface. Many, many other questions are waiting to be asked and answered with this study. So get your curiosity on!
The following data fields are exported:
- DATE – The date and time the session started
- IB DURATON – the duration of the initial balance, in minutes
- IB HIGH – the high of the range
- IB LOW – the low of the range
- IB RANGE – the range total, in points
- IB +x1 – the first 50% IB high-side range extension
- IB +x2 – the second 50% IB high-side range extension
- IB +x3 – the third 50% IB high-side range extension
- IB +x4 – the fourth 50% IB high-side range extension
- IB -x1 – the first 50% IB low-side range extension
- IB -x2 – the second 50% IB low-side range extension
- IB -x3 – the third 50% IB low-side range extension
- IB -x4 – the fourth 50% IB low-side range extension
- BREAKOUT HIGH TIME – the time the first breakout of the IB range occurred on the high side of the range.
- BREAKOUT HIGH – the highest price achieved after the breakout
- BREAKOUT HIGH RANGE – the range of the breakout, in points
- BREAKOUT MAXHIGH TIME – the time that the highest price was achieved after the breakout
- BREAKOUT LOW TIME – the time the first breakout of the IB range occurred on the low side of the range.
- BREAKOUT LOW – the lowest price achieved after the breakout
- BREAKOUT LOW RANGE – the range of the breakout, in points
- BREAKOUT MAXLOW TIME – the time that the lowest price was achieved after the breakout
- SESSION HIGH – the high price of the session
- SESSION LOW – the low price of the session
- SESSION RANGE – the range of the session, in points
This is a specialized study that counts how often each bar makes a new high or a new low over the span of time covered in your chart. The data in this chart can produce answers to one of the questions posed above – what bar over the course of “x” sessions is most likely to produce a new high or a new low? Or given a particular bar in the session, what is the probability of seeing the existing range expanded before the end of the session?
I’m sure there are other gems in there. Can you find them? The following data fields are exported:
- TIME – the time bar closed
- NEW HIGHS – the number of times in the sample this bar was a new session high
- NEW LOWS – the number of times in the sample this bar was a new session low
- SESSION START – whether this bar was the first of the session
Acme Market Study
This is the “generic” study that exports raw bar data for examination and manipulation later. Your ideas are the rocket… this is the fuel. The following data fields are exported:
- TIME – the time bar closed
- SESSION START – Whether this is the first bar of the session
- OPEN – the opening price of the bar
- HIGH – the highest price of the bar
- LOW – the lowest price of the bar
- CLOSE – the closing price of the bar
- RANGE – the range of the bar in ticks
- VOLUME – the total volume of the bar
- NEW HIGH – whether the bar was a new high for the session
- NEW LOW – whether the bar was a new low for the session