My Custom Charts Explained
Post Bottom Opportunity Finder (PBOF) Link to heading
My PBOF chart is an attempt to identify, and be decisive, after a potential bottom has formed through with a good sequential 9 or 13 and triple exhaustion signal. Oscillator divergence and volume are clues to a potential bottom. But they are hard to buy into real time. If it appears a bottom has possibly been established, and I have not bought into the teeth of it via my exhaustion signals alluded to above, then I want to buy the next pullback. To identify that pullback I am hoping my PBOF chart will be useful. It would show some indications of a bottom as described, followed by oversold conditions on fast CCI and RSI oscillators. The price ought to be near the bottom of the bollinger band as well. Triple exhaustion and sequential aren’t of use generally once the bottom is in. So now I would reduce my focus to these oscillators and the bollinger bands (which is a useful short term volatility indicator), and seek out oversold conditions. I would also look at volume profile here and see if we are in a thin volume area or not? Are we pulling back to volume support? Where is that support? Near POC or the lower end of the value area?
A corn trade that I mishandled (missing the first pullback) inspired me to design the PBOF chart. So here are two corn charts (ZS and CORN) that I published as an idea in Tradingview so that they are fixed in time and not updating. If they update then the chart will lose meaning. So it is static. You just have to pull up a later chart and see how it worked. If you have a tradingview account you can hit the right arrow to show subsequent price action but the indicators do not update.
As you will see in these charts, after ZC and CORN bottomed in late February, it got overbought and pulled back with clear buy signals on the oscillators and bollinger bands. The lower end of the value area was interesting information as well (reperesented by the blue dotted line) as it acted as resistance on this six month chart.