Bride of If You Can Draw A Straight Line

[DanioZ]

DB what is your opinion on taking trades right into demand/supply lines from higher bar interval (buying after brokern supply line + RET @ 1min bar interval right into not broken supply line @10m bar interval). I understand that those lines only track D/S and don't provide support/resistance but maybe it's better to pass that kind of trades.

Sorry for my English

Best regards

 

[dbphoenix]

Quote from DanioZ:

DB what is your opinion on taking trades right into demand/supply lines from higher bar interval (buying after brokern supply line + RET @ 1min bar interval right into not broken supply line @10m bar interval). I understand that those lines only track D/S and don't provide support/resistance but maybe it's better to pass that kind of trades.

Sorry for my English

Best regards

I only use a 1m interval or less, so I can't help you there. If you want to use a 10m for some reason, you'll be able to find your answer through testing.

 

[dbphoenix]

Quote from blakpacman:

The USD index is worth watching. It hit a downtrend line in July, then immediately turned down coincident with Fed's non-tapering decision, and continued almost to 12 month lows on further non-tapering. I think it's read to break down in the months ahead from its deformed head and shoulders pattern. That would be very good for gold. Catalyst for the break would be a combination of worse than expected economic data and another instance of taper talk that is followed by untapering, which would lower confidence and value in the Dollar from ongoing debt monetization. Also notice lower and lower highs on successive crisis. Greek crisis in 2010 was on lower highs, then the 2011 and 2012 European Sovereign crisis, which was of greater severity since in included Italy and Spain, saw even lower highs in the Dollar. A possible inference is the Dollar losing status as a safe haven. This conclusion supports the view of an imminent break to the downside on Fed's inability to taper QE and decreased confidence in the Dollar as a a result.

You appear to be in the wrong thread.

 

[bmwhendrix]

Thanks to DB I have been watching the price action around midpoints of ranges more. The action of the last few days has been pretty interesting to me. The high of the 22nd of 77 has been respected numerous times in the past week. The nq has made 2 LL's and 2 LH's
but still holding above the range bottom around 60.

What will be interesting at least to me is what happens Sun night as we closed Friday with a bounce off of that midpoint.

 

[tradingjournals]

Quote from bmwhendrix:

Thanks to DB I have been watching the price action around midpoints of ranges more. The action of the last few days has been pretty interesting to me. The high of the 22nd of 77 has been respected numerous times in the past week. The nq has made 2 LL's and 2 LH's
but still holding above the range bottom around 60.

What will be interesting at least to me is what happens Sun night as we closed Friday with a bounce off of that midpoint.

Good chart BMW! My analysis tells me that 3400 is likely a top, so what we see is probably a topping process. When I look at the rise from 3330 area towards the 3400, I see a possible nonlinear price-time curve with a negative second derivative. So a non linear curve such as A+Bt +CT^2 could give more information. If one were to look at the changes in price and time measured from the 3330 bottom, one then get A to be zero by looking at price changes and counting time starting at the bar when prices started to rise.

BWM: could you please post the excel file containing your numbers?

Anyone else: Could I suggest that we get the A, B and C. SQRT(ABS(B/2C)) should tell us where would the price peak?

Some might say why do we discuss something non linear when the lines are the focus of this thread? I would say it is true that lines could be fine as long as one can analyze time as continuous (as DB reiterated a number of times, and he is right to do that), but one could also analyze it as non-line curves such as the curve I suggested above. This would allow one to see the picture at a higher level. Demand-Supply waves do not always travel in a constant angle. They could also go sideways, or follow a non linear curve. Think of the example of a rock thrown upward. The trajectory could be viewed as many pieces of lines with decreasing slops over time, but also as an A +Bt + Ct^2.

 

[Gringo]

Quote from tradingjournals:

Good chart BMW! My analysis tells me that 3400 is likely a top, so what we see is probably a topping process. When I look at the rise from 3300 up to 3400, I see a possible nonlinear price-time curve which a negative second derivative. So a non linear curve such as
A+Bt +CT^2 could give more information. If one were to look at change in prices from time and price since the 3300 area rise, we can get A to be zero but looking at price changes, and counting time starting at the bar when prices started to rise.

BWM: could you please post the excel file containing your numbers?

Anyone else: Could I suggest that we get the A, B and C. In fact. SQRT(ABS(B/2C)) should tell us where would the price peak?

tradingjournals,

What you have written actually may be quite valuable. Unfortunately in this thread what you have written is a bit off topic. Perhaps, if you could start another thread where those of us who like what you have to add might engage in a direct discussion, and benefit from it.

Gringo

 

[llIHeroic]

Quote from tradingjournals:

Good chart BMW! My analysis tells me that 3400 is likely a top, so what we see is probably a topping process. When I look at the rise from 3330 area towards the 3400, I see a possible nonlinear price-time curve with a negative second derivative. So a non linear curve such as A+Bt +CT^2 could give more information. If one were to look at the changes in price and time measured from the 3330 bottom, one then get A to be zero by looking at price changes and counting time starting at the bar when prices started to rise.

BWM: could you please post the excel file containing your numbers?

Anyone else: Could I suggest that we get the A, B and C. SQRT(ABS(B/2C)) should tell us where would the price peak?

Some might say why do we discuss something non linear when the lines are the focus of this thread? I would say it is true that lines could be fine as long as one can analyze time as continuous (as DB reiterated a number of times, and he is right to do that), but one could also analyze it as non-line curves such as the curve I suggested above. This would allow one to see the picture at a higher level. Demand-Supply waves do not always travel in a constant angle. They could also go sideways, or follow a non linear curve. Think of the example of a rock thrown upward. The trajectory could be viewed as many pieces of lines with decreasing slops over time, but also as an A +Bt + Ct^2.

How much of the three threads on this method have you read?

I ask because the things you are saying are valid, but they have already been thoroughly covered within the discussion of this method and you speak like you are introducing a new concept. The basis of this entire method is the tracking of the changes in supply and demand. We only view supply and demand from a strictly linear perspective for very short periods of time.

Instead of adding an additional layer of complexity as you've suggested, since the spirit of this methodology has been boiled down to a very simple and minimalistic core, we just make new lines in order to track the 'derivatives' of supply and demand dominance. Is it a perfect curve like it could be? No, but it conveys the exact same information.

See attachment for examples.

 

[tradingjournals]

Quote from llIHeroic:




Instead of adding an additional layer of complexity as you've suggested, since the spirit of this methodology has been boiled down to a very simple and minimalistic core, we just make new lines in order to track the 'derivatives' of supply and demand dominance. Is it a perfect curve like it could be? No, but it conveys the exact same information.

See attachment for examples.

You showed a case where the trade is long, and the second derivative is positive. How about if you are long, and the second derivative is negative? One should be able to see the value of the second derivative, and when not to go against it.

 

[dbphoenix]

Quote from tradingjournals:

You showed a case where the trade is long, and the second derivative is positive. How about if you are long, and the second derivative is negative?

TJ, please start your own thread. None of this has anything to do with the content of this one.

 

[tradingjournals]

Quote from dbphoenix:

TJ, please start your own thread. None of this has anything to do with the content of this one.

Fine DB. I was just answering his post for completeness, because the I thought the readers might benefit from knowing the other case. I would not ask another question on your thread. Feel free to remove all posts and the related answers. I think, in any method the pluses and minuses have to be shown. and one should not only focus on the positives. The markets would show the negatives at time or another, and people would pay in money for the negatives.

I wish you well in this thread and in your trading, and please feel free to remove any or all of my posts.