Applying STOPD on US 30-Year Bond Futures
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.
Week of Apr 13 to Apr 17.
Week of Apr 20 to Apr 24 with Apr 27 Monday completed.
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.
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.