The Odds Czar: Index Futures Biases for March 27

Popular Articles

By Art Collins | Published 03/26/2006 | Currency , Futures | Unrated

The Odds Czar: Index Futures Biases for March 27

The indexes resumed their uptrend on Friday, and I expect that will continue at least through Monday. The calendar indicators are unanimously supporting that notion. The either-ors are also in solid agreement.

Interestingly, although the S&Ps rallied, they conformed to the three-day resistance area mapped out by the fourth line of the second signal box. The displayed -1 signal refers to the fact that the distance from the highest three-day high to the lowest three-day high was 20 percent or less of the total three day range. That suggests an unpenetrated overhead resistance. I guess my response to the overall picture will be to lightly enter longs at the open and add to the 131625 high when taken out. 131650 minus the lowest high of 131425 would represent more than 20 percent of the current 111625-110525 total range -- meaning one dissenting signal would fall at that point.

Either-Or Biases

The first set of biases includes six biases that individually signal either long or short on a daily basis, except for the rare tie. Each bias has a +1 value for long bias, and a -1 for short. The bottom line is the sum total, which can range from -6 to 6. Positive totals are bullish; negative are bearish. For bullish signals (opposite is bearish):

The 2-day average is below the 5-day average.
The close is above the 40-day average.
The highest close of the last 50 days occurs before the lowest close of the last 50 days.
The day's trading range is smaller than the 10-day average range and the day's close is higher than the 10-day average close OR the day's range is larger than the 10-day average range and the close is lower than the 10-day average close.
The close is above the midpoint of the average 15-day range. (The 15-day high average plus the 15-day low average divided by 2.)
Fade the majority direction of the last three open-to-closes.

Infrequent Biases

The five infrequent biases are listed below. For bullish signals (opposite is bearish):

Four successively higher closes were followed by yesterday's down close. Today's action was irrelevant.
Five successively lower closes were followed by today's up close.
CUP trade. For the last three trading days, the middle day had both the lowest low and the lowest close. In addition, the low on the middle day must also be lower than the lows from the previous three trading days before the middle day. (CAP is the reverse and bearish.)
The highest low minus the lowest low of the last three days is less than or equal to 20% of the highest high minus the lowest low of the last three days.
For the previous two days, the market closed lower than it opened.

Calendar Biases

The calendar biases in the indexes are listed below. For a more in-depth explanation of these, click here.

Click here for the TradeStation summaries of all 14 futures biases.

DISCLAIMER: It should not be assumed that the methods, techniques, or indicators presented in this column will be profitable or that they will not result in losses. Past results are not necessarily indicative of future results. Examples presented in this column are for educational purposes only. These set-ups are not solicitations of any order to buy or sell. The author, Tiger Shark Publishing LLC, and all affiliates assume no responsibility for your trading results. There is a high degree of risk in trading.

Art Collins is the author of Market Beaters, a collection of interviews with renowned mechanical traders. Much of Art's TigerSharkTrading.com material will be expanded upon in his upcoming book that is scheduled to be released later this year. E-mail him at artcollins@ameritech.net.

It should not be assumed that the methods, techniques, or indicators presented on these websites will be profitable or that they will not result in losses. Past results are not necessarily indicative of future results. Examples presented on these websites are for educational purposes only. These set-ups are not solicitations of any order to buy or sell. The authors, Tiger Shark Publishing LLC, and all affiliates assume no responsibility for your trading results. There is a high degree of risk in trading.