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JFC Intraday Hi Lo Indicator
The
JFC Intraday Hi Lo Indicator is a useful tool which is used to automatically
notify the user when the high or low of the current day is being approached.
This
indicator is used only on intra-day charts.
The
JFC Intraday Hi Lo Indicator plots a series of blue dots at the high of the day
and a series of red dots at the low of the day.
Obviously,
on big range days, this would compress the price bars near either the top or
bottom of the chart. For this reason an input is used to govern the location of
the plots which define the high and low of the day.
With
the Pts input set at the value of 3, as shown above, the high of the day would
only be plotted if the high of the bar in question was within 3 points of the
high of the day. Also, the low of the day would only be plotted if the low of
the bar in question was within 3 points of the low.
Obviously,
this input will need to be altered for each issue / contract being monitored by
this tool. In this case, the input is set at 3 since it is being used on a one
minute e mini chart. See the price chart in this section for more
detail.
Style
The
plot which tracks the high of the day is defaulted to blue while the low of the
day is marked by a red plot. These colors may be changed to more closely match
various color schemes being used by the trader.
It
is very important that the scaling for the JFC Intraday Hi Lo Indicator be set to
Same as symbol. Other settings will result in a meaningless plot.
This
indicator should always be plotted in subgraph one, as noted on the following
page. There are no alerts associated with this indicator. It is not necessary to
update this indicator every tick.
The
following chart is a one-minute bar chart of the Dow Jones Futures Contract.
Notice the plots of the JFC
Intraday Hi Lo Indicator as they define the high and low of the day as the
session progresses.
Note
also that the plots only appear when necessary, as defined by the Plt. input.
When
one looks at the chart of a complete day, as in this chart, the usefulness of
this simple trading tool is not immediately obvious. However, when plotting this
indicator on a real time chart, you will soon see how this plot can save you
time and possibly eliminate some trading errors throughout the day.
The
market will behave in certain ways when the high or low of the day is approached
during the middle to later part of the day. It is in the best interest of the
trader to first be aware of this phenomenon and then be able to easily identify
this condition before it appears.
Often,
during the middle to later part of the day, the entire chart will not be
visible. To determine the position of the high or low of the day the trader
would have to either compress the chart, scroll back to the beginning of the
day, or carefully examine the quote numbers at the top of the chart. All this
takes time and effort, time and effort which should be used toward developing
your strategy for the next trade.
Using
the JFC Intraday Hi Lo Indicator the trader is able, at a glance, to determine
the relative position of the current market with respect to the high and low of
the day.
