Hi,
Sorry - I know this is not a ‘system’ - but I’m trying to find out from others that are already trading with ‘systems’ how they would handle it i.e. it’s not a ‘new trader’ question and requires some ‘weathered’ input!!!
My problem is this:
At all the brokers I trade with - I get a ‘Sunday’ candle or bar.
The reason it’s ‘become and issue’ is that I’m testing a ‘system’ by J. Welles Wilder Jnr. called the ‘Trend Balance Point System’. Based on previous days open, high, low, and close prices there are a number of calculations that need to be done and these include the calculation of the Average True Range (ATR) and a ‘Momentum Factor’ (MF) which really is a sort of ‘hybrid value’ of momentum.
On forex pairs I don’t see that it should (could) be a problem for the simple reason that any momentum from Friday SHOULD theoretically just carry over to Sunday right? (Actually - at first I thought it would be a problem on forex pairs - but in retrospect I don’t think it will be for the reason mentioned above).
However, with the indices (Dow, Nasdaq 100, and S&P 500 Futures Contracts), these are traded the same hours as forex pairs BUT the ‘main’ or ‘proper’ indices i.e. the ‘actual’ Dow, Nasdaq 100, and S&P 500 are only traded from 15h30 to 22h00 New York time i.e. the opening and closing of the NYSE and the futures and the ‘main’ indices are ‘kept in kilter’ with each i.e. the one ‘depends’ on the other as it were.
So, in other words, the question really is this: in your opinion - does the ‘Sunday’ candle or bar have any relevance in calculating momentum or anything else?
If your answer is ‘yes’ - then please give me a short explanation as to why you think so.
If your answer is ‘no’ - then the question is - what do you do with the Sunday candle or bar i.e. you have two options: either you ‘combine’ it’s values with the Monday candle or bar (so that you actually only have a bar for Monday and you are therefore assuming that this data is based on ‘carry over’ from Friday) OR you simply discard the Sunday candle or bar TOTALLY.
I can tell you this: that Delta ONLY gives you a Monday candle but the reason for this is that they open at 00h00 Bulgarian time so they only HAVE or can only give you a ‘Monday’ candle or bar BUT GCI and Tradex (and any other broker that ‘runs’ on New York Time) will give you a ‘Sunday’ candle or bar which is representative of the movements between 17h00 and 00h00 on Sunday New York time. Again - my question is - do you think or believe that this time period has any ‘relevance’ to stocks and the indices (futures)? That’s the question.
Hope this makes sense - I’ve tried my best to explain it.
To be honest: I’m leaning toward the ‘combining’ of the ‘Sunday’ and the ‘Monday’ candle or bar. Just need some second opinions.