TRADING ROBOT DESIGN SERVICE

An OHCLM bar, or any bar for that matter, is made from the trading activiy tick by tick during market trading hours.  The chart above is for the SPY or the Exchange Traded Fund (ETF) that mimmics the SP-500 Index in 1 minute bars for February 1, 2021 during regular trading hours from 9:30 am to 16:00 pm.  The SPY is one the largest, most widely traded and liquied ETF.  The daily bar turned out to be a classic bullish or Up Bar (1UP).  The Open (O) is the only value  known at the start of trading hours.  The High (H), Low (L) and Midrange (M) are dynamic during trading hours, but sometimes can be guessed before the market closes.  The Close (C) can only be known when the market closing bell rings.    Image above is a Bullish or Up Bar (1UB)

ASSET INFORMATION

Symbol
SPY
Underlying Index
SP-500
Asset Type
Exch Traded Fund
Exchange
NASDAQ
Market Hours
9:30am-4:00pm EST
Avrg. Daily Volume
84 million shares
Capitalization
$ 435 Billion

INTRABAR OHLCM PRICE POINTS

FOR UP BAR (1UB) IMAGE ABOVE

(H) High
377.34
(C) Close
376.23
(M) Midrange
374.38
(O) Open
373.72
(L) Low
371.42
(R) Range Pts/%
5.92/1.57%
Bar type
Bullish/Up Bar (1UB)

DAILY UP BAR EVOLUTION

It is extremely important to understand that any bar is a living object that will affect price action, technical indicators and trading strategies interpretation within the same bar  until its timeframe its closed.   The 1/3 day sections, from 9:30-11:40, 11:40-13:50 and 13:50-16:00 show the evolution of the daily bar for february 1, 2021.  The Open (O) was set at 9:30 am.  The Low (L) was set early in the day around 10:00 am.  Trading moved higher all day until the High (H) was reached around 15:00 pm.  The Midrange (M) changed everytime a new hign or new low was made.  The Close (C) changed continously from the Open (O) to the Close (C).

PA0002 Daily Chart Evolution
PA0002 Daily Chart Evolution

DAILY UP BAR EVOLUTION

It is extremely important to understand that any bar is a living object that will affect price action, technical indicators and trading strategies interpretation within the same bar  until its timeframe its closed.   The 1/3 day sections, from 9:30-11:40, 11:40-13:50 and 13:50-16:00 show the evolution of the daily bar for february 1, 2021.  The Open (O) was set at 9:30 am.  The Low (L) was set early in the day around 10:00 am.  Trading moved higher all day until the High (H) was reached around 15:00 pm.  The Midrange (M) changed everytime a new hign or new low was made.  The Close (C) changed continously from the Open (O) to the Close (C).

BEARISH OR DOWN BAR (1DB)

PA0002 BEARISH BAR EVOLUTION

DAILY DOWN BAR EVOLUTION

The image abose shows the daily evolution of a Daily Bearish or Down Bar (1DB) from a 1 minute char.  The next image shows 1/3 day sections as the daily bar is constructed.  It is important to note that these are not 1/3 day bars (except the first one), since they would have their own OHLCM for their corresponding timeframes.  The 1/3 day sections, from 9:30-11:40, 11:40-13:50 and 13:50-16:00 show the evolution of the daily bar for march 31, 2021.  The Open (O) was set at 9:30 am.  The High (H) was set early in the day around 10:30 am.  Trading moved lower until the Low (L) was reached around 13:30 pm.  The market trended higher to the Midrange (M) and it a sharp drop genereated a very bearih bar at the Close (C).

PA0002 BAER ONE THIRD DAY EVOLUTION
PA0002 SPY CONTECT GRAPH

SPY DAILY GRAPH CONTEXT

The march 31, 2021 (1DB) and the february 1, 2021 (1UB) discussed above are identified in the the SPY ETF  daily graph for context reference.  As an introduction to Technical Analysis assesment the very bearish (1DB) is followed by strong reversal busllish bar.  These trend reversals tend to accurr at bottoms of swing movements.  The bar types shown in the graph are Japanese Candle Bars with Trend.  It is extremely important to understand that bar colors on popular charts are based on interbar relationships of their Closes (C) as explained in PA000X Soandso.

0 Comments

Submit a Comment

Your email address will not be published. Required fields are marked *