Quote Originally Posted by trader847 View Post
Hi Mike. On the chart of ACIA, you have "% Range 12/15Up(15)". Can you explain? Then there is "Power of Three" but I don't see one on the chart? What are the diamonds above 5 of the price bars? And are you saying the buy point is $124.90?
Thank you - Frank
Frank,

% Range is an indicator I wrote for eSignal to read out a bar cursor value for where the price close is relative to the high and low of each bar. It helps determine if a bar is showing distribution, support, stalling or accumulation. The formula is % Range = 100* (H-C)/(H-L). % Range is 100% if the close is at the high, 0% if the close is at the low. These are cursor values only, not visible on the chart itself.

The 12 of 15 up indicator is what creates the diamonds above the price bars. Bill O'Neil has these on his charts. A diamond is printed whenever 12 or more of the last 15 trading days has closed up. An alternative buy point is created if we get 12 of 15 up (sign of strength) followed by a short pull back and breakout to a new high. Looking at the ACIA chart, you can see a place to buy or add to the position after the green diamonds and pullback, the buy point being around a price of 65.50. The buy point is when price moves to new high ground.

The Power of Three indicator is something I wrote to flag whenever three of four moving averages have converged to nearly the same price (10-day, 21-day, 50-day, 200-day). When price bounces off of a convergence of moving averages, I believe this is a stronger structure than bouncing off of a single moving average. The chart I posted did not show this condition if it had the background would have changed from green to gray during the time of convergence.

You will also see diamonds above volume bars. These are historical volume trigger alerts (pocket pivots).

The high-tight flag pivot point is 124.90. You should demand high volume if this happens.