Applying STOPD on US 30-Year Bond Futures

By Lawrence

I was asked if STOPD works with US 30-Year Bond Future. Instead of a simple yes or no answer, I think it is better I show some charts to illustrate the point. Following are several charts of the US 30-Year Bond Futures (symbol ZB) with STOPD price levels.

Weekly STOPD Price Levels on 20-min RTH only ZB.

 

Week of Apr 6 to Apr 10.

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Week of Apr 13 to Apr 17.

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Week of Apr 20 to Apr 24 with Apr 27 Monday completed.

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Bonds actually response to the the weekly STOPD price levels very well, including the expansion targets.

 

Now let’s take a look at the intraday STOPD price levels over the past 5 days.

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Again, it is obvious bonds response to the intraday STOPD price levels and expansion targets very well.

 

One thing worth talking about is that bonds loves the 25% and 75% levels much more than many other markets.

 

In short, remember that Special Theory of Price Discovery (STOPD) is not a theory constructed from imagination or data mining. I obtained the results from mass scale simulations against all kinds of virtual market participants. As I explained in the book, as long as the market participants have some common objectives to archive in a market, price will behave in the way I explained in the book.

Comments
  • skippy April 28, 2015 at 10:49 am

    I’ve looked at STOPD levels on 24hr charts (on ZB as well as US equity indices) and found them useful, as well. But I see you base yours on RTH. Are the RTH levels, in your experience, more “noteworthy”? Or is this just a question of personal preference?

    • Lawrence May 2, 2015 at 9:49 am

      It used to be dominated by RTH levels only, just like Emini S&P and other markets.

      For Emini S&P’s case, the RTH levels can be complemented with the afterhours levels.

      So the same can be done with bonds.

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