First, let me make THREE things clear:
1. I have never attempted to day-trade, even though in the past I have had occasion to use MetaStock Pro, which tracks the markets live in any level of trading chart you want. You can trade "tick", 1-minute, 5-minute, 10-min, etc., or go with Daily, Monthly, whatever. You can do a mixture of multiple time frames, if you wish.
2. Although I fully believe that TW-Channels should be implemented in the End-of-Day version of MetaStock, and in MetaStock Pro as well, I cannot say whether it would be a good idea to actually plot TW-Channels in day-trading time interval charts, such as "tick", 1-minute, 5-minute, and the like. Certainly they would be useful in Daily, Weekly, Monthly charts, but I've never had a chance to try using them in any time-interval less than Daily.
3. I have, however, watched 1-minute and 5-minute chart prices react to the Support/Resistance price-levels in my Daily charts having well-drawn TW-Channels in them. I'm certain that with well-drawn TW-Channels in a Daily chart, any day-trader could strengthen his/her trading with regard to using Support/Resistance levels to make trading decisions. Assuming, of course, that the Day Trader is willing to try it long enough to see it work.
The trouble with doing this now, though, is the tedium and time needed to place valid TW-Channels in a Daily chart of the targeted trading instrument. In order for TW-Channels to be as useful as they could be, a new tool is needed,...
the TW-Channel Tool that I've proposed for MetaStock.
the TW-Channel Tool that I've proposed for MetaStock.
The illustration below is a crude one, but it will serve to show how TW-Channel Daily charts could help the day-trader see Support/Resistance areas before they are actually hit:
On the left you see an image of the candlestick that appeared on my Daily chart, with lines crossing it at various angles and prices. On the right is an OHLC Bar of the same date's price movement. Note the purplish and reddish Std-Err Channel Lines that draw a flat sort of X across the candle and the bar. Also note that the mid-point of the X is just to the right of the mid-point of the candle and just to the right of the OHLC Bars vertical line.
Candlestick on Daily Chart of GM on 11/07/14 |
OHLC Bar on Daily Chart of GM on 11/07/14 |
Two screen-shots of Google's 1D chart of GM for 11/07/2014. |
If you are a day-trader, can you not picture yourself being able to use the extra "intelligence" that these lines provide to help you make a trading decision?
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