You have seen in previous article than the 1st minute bar can help
you reduce DOF (http://www.econometric-wave.com/articles/3/index.html) not only it can help but it is
crucial to wait for this 1st min bar close notably in the case of
forcing. For forcing see the guide or homepage http://www.econometric-wave.com/articles/1/home.html.html
"When a target is passed without consolidation it is said to be
forced and consolidation generally follows to retest that forcing
zone".
Forcing is THE KEY to understand HIGH VOLATILITY and profit from it.
You can see some illustrations on statistics page these last days by
clicking on the date column when these cases are indicated
(http://www.econometric-wave.com/statistics/1/index.html).
Nevertheless as BEGINNER you shouldn't trade these cases as long as
you don't understand them fully as it implies countertrend,
consolidation and backwardation in time that is to say more knowledge
of market's cycle whereas the basic case in green/red only follows
the one single rule. Once you master them you will love these high
volatile days that most traders can't predict accurately but try to
understand the simple cases before or you will get confused.
To help you understand the importance of opening and of the model in
general we will use a metaphore. Why use metaphores ? In an e-book
called "How to become a supergenius on three wishes" the author says
that the way to do so is to get acquainted with a new material with
something that is already familiar. Genetic is more familiar to you
than model's market since you must have learned it at school. And here
we're going to make an analogy with genetic mechanism which are
Information packing, transcription and alternative splicing:
A biological cell is composed of proteins which are themselves
composed of amino-acids. Let's pretend that these proteins are the
analogs of the swings in market and amino-acids the analogs of waves
which subdivide a swing.
The cell doesn't contain the proteins at its birth but fabrics them.
For that it uses an information which is coded not
in the same form than proteins but in the form of DNA which is a
double string of paired bases of nucleotides.
By analogy, in our model, market somehow coded its information in a
double-string which is our base and projection lines
where each segment are the analogs of amino-acids composing the DNA,
and where each point are also paired like in DNA bases
- we call them "Duals" in our model. Moreover, for organisation
purpose, the DNA is not a floating chain,
it is folded by packing it into some proteins structures called
histones. In the same manner our model shows that
market waves are also condensed into a compact form that needs to be
unfolded to be used. This stage is called
transcription. This is done through the rules for interpreting our
model. This transcription is not unique: depending
on where the DNA is read this can give birth to different proteins
sequences: this is called alternative splicing. By analogy depending on where
the market
opens different market waves can be generated with the same static
structure revealed by the model.
you reduce DOF (http://www.econometric-wave.com/articles/3/index.html) not only it can help but it is
crucial to wait for this 1st min bar close notably in the case of
forcing. For forcing see the guide or homepage http://www.econometric-wave.com/articles/1/home.html.html
"When a target is passed without consolidation it is said to be
forced and consolidation generally follows to retest that forcing
zone".
Forcing is THE KEY to understand HIGH VOLATILITY and profit from it.
You can see some illustrations on statistics page these last days by
clicking on the date column when these cases are indicated
(http://www.econometric-wave.com/statistics/1/index.html).
Nevertheless as BEGINNER you shouldn't trade these cases as long as
you don't understand them fully as it implies countertrend,
consolidation and backwardation in time that is to say more knowledge
of market's cycle whereas the basic case in green/red only follows
the one single rule. Once you master them you will love these high
volatile days that most traders can't predict accurately but try to
understand the simple cases before or you will get confused.
To help you understand the importance of opening and of the model in
general we will use a metaphore. Why use metaphores ? In an e-book
called "How to become a supergenius on three wishes" the author says
that the way to do so is to get acquainted with a new material with
something that is already familiar. Genetic is more familiar to you
than model's market since you must have learned it at school. And here
we're going to make an analogy with genetic mechanism which are
Information packing, transcription and alternative splicing:
A biological cell is composed of proteins which are themselves
composed of amino-acids. Let's pretend that these proteins are the
analogs of the swings in market and amino-acids the analogs of waves
which subdivide a swing.
The cell doesn't contain the proteins at its birth but fabrics them.
For that it uses an information which is coded not
in the same form than proteins but in the form of DNA which is a
double string of paired bases of nucleotides.
By analogy, in our model, market somehow coded its information in a
double-string which is our base and projection lines
where each segment are the analogs of amino-acids composing the DNA,
and where each point are also paired like in DNA bases
- we call them "Duals" in our model. Moreover, for organisation
purpose, the DNA is not a floating chain,
it is folded by packing it into some proteins structures called
histones. In the same manner our model shows that
market waves are also condensed into a compact form that needs to be
unfolded to be used. This stage is called
transcription. This is done through the rules for interpreting our
model. This transcription is not unique: depending
on where the DNA is read this can give birth to different proteins
sequences: this is called alternative splicing. By analogy depending on where
the market
opens different market waves can be generated with the same static
structure revealed by the model.
.