Duxon's Archive

OTHER DAILY CHART BOUNDARY VIOLATIONS:
  • 2-day price range envelope at 1.35% deviation; ended by a reversal in the daily trend
  • 6-day price range envelope at 3.00% deviation; ended by a reversal in the 2-day baseline, confirmed by a reversal in the four-day baseline
  • 12-day price range envelope at 4.60% deviation; ended by a reversal in the 2-day baseline, confirmed by a reversal in the four-day baseline
  • 24-day price range envelope at 5.00% deviation; ended by a reversal in the 2-day baseline, confirmed by a reversal in the four-day baseline
  • 40-day price range envelope at 7.00% deviation; ended by a reversal in the 2-day baseline, confirmed by a reversal in the four-day baseline
OTHER MEASURES TO USE FOR INDIGENT (FORMERLY PRODIGAL) SETUPS IN ADDITION TO THE EIGHT-HOUR BASELINE:
  • 2⅔-Hour Baseline
  • 40-Minute Baseline (Must rebound off 48-minute temporal support/resistance)
 
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expiated said:
OTHER DAILY CHART BOUNDARY VIOLATIONS:
More...
2½-Hour Boundary Violation

Anticipate a possible regression toward the mean/mean reversion type maneuver when candlesticks begin painting outside the upper or lower band of the 2½-hour price range envelope at 0.50% deviation. Note however that reversals are often executed at a much less extreme level (i.e., 0.29% deviation). Explore how this setup might fit in with the other potential trade setups already described.

Make this the "2⅔-hour boundary violation" rather than 2½-hour. Also, note that in addition to being defined by statistical support or resistance at 0.50% deviation (or possibly even 0.29% deviation); this setup is also characterized by 8-hour temporal support or resistance. (The reversal is confirmed when the 40-minute baseline begins to head back in the opposite direction toward the 2⅔-hour baseline.)

In between these violation levels, you will often observe the "Five-minute Return of the Indigent Son" maneuver, where the five-minute tend (line) will transition from a course opposed to the slope of the 40-minute baseline to one that is aligned with it after rebounding off the 48-minute temporal support or resistance level from behind (from the "far" or "wrong" side of) the 40-minute baseline.

These two types of reversals sometimes take place in between the upper and lower price range. This would be the 2⅔-hour baseline indigent setup listed in Post #831, except that statistical support or resistance is rendered in this case by the baseline itself, which should be sloping relatively dramatically; and additional support or resistance is typically found in the form of the 2⅓-hour temporal support or resistance level rather than eight-hours or 48-minutes. It could be argued that, here too, the reversal is confirmed when the 40-minute baseline begins to head back in the opposite direction, but since this is often preceded by the 10-minute baseline beginning to head back in the opposite direction, I'm changing the name to this setup to: The Ten-minute Return of the Indigent Son.

Again...the five-minute return is off the 40-minute baseline, whereas the ten-minute return is off the 140-minute baseline.
 
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Since the 12-hour price range envelope constitutes, not only the upper and lower limits beyond which price will not go on a weekly AND daily basis, but also the gist of where price is headed from a weekly perspective; when it is on a steep incline or descent, the center of the range (i.e., the 12-hour baseline) can serve as statistical support or resistance, as appropriate. Reversals from behind this "wall" are confirmed by the two-hour baseline, but so are several others, so it would not make sense to call it "The Two-hour Return of the Indigent Son." Moreover, the other reversals similar to it are all likewise reinforced by eight-hour temporal support and resistance, so I'm going to name them in accordance with their measures.

The 12-Hour Baseline Bounce comes to mind, so I will start there.
Then there is the 16-Hour Baseline Rebound.
And finally, there is the 8-Hour Baseline Bank Shot

So, you will be watching for five "errant" (not "indigent") type setups...
  • The Five-minute Return of the Errant Son (40-minute baseline)
  • The Ten-minute Return of the Errant Son (2⅔-hour baseline)
  • The 8-Hour Baseline Bank Shot
  • The 12-Hour Baseline Bounce
  • And the 16-Hour Baseline Rebound
But, based on Post #829, I could include 4-days, 8-days, 12-days and 40-days as well. So, rather than think so specifically, I will simply check for any and every "Errant Son" setup on my daily and intraday charts, except that on my intraday charts, I will continue to check each hour.

Another very basic way to look at it is to simply ask myself two questions:
  1. With respect to which baseline(s) is the exchange rate errant, if any?
  2. What, if any, price ranges are currently being violated?
Two additional questions might be: Are any key moving averages reversing direction at, near or beyond these measures, and if so, are these reversals being backed up by any of the temporal support/resistance levels?

At this point, I'd like to go to my "Compare and Contrast" thread and consider these kinds of questions.
 
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My Fictional Introduction...
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Hi!

My name is William F. Duxon II, and whether it is music, art, stories, businesses, or instructional programs; I am at heart—a creator.

As a veteran educator, I was in the habit of finding solutions to achieve success rather than hypothesizing theories to excuse students’ failures; and this is the same ethos I brought with me to the financial markets.

I developed my system primarily as a solution for the average retail investor as well as for professionals looking to take their game to a whole new level. It incorporates low-risk, high return tactics that traditional buy-and-hold strategies cannot match.

However, rather than mimicking the kind of AI or machine learning so popular these days—modeling my system after the human brain or seeking to find patterns that enable it to draw inferences—my goal has been to design something more reflective of flight dynamics, which uses the laws of physics to explain how forces act on vessels to govern their performance, stability and control to ultimately determine their velocity and attitude with respect to time.

So, in the same way pilots are aware that a Boeing 747 will lift off the ground by angling upward at two to three degrees per second with a maximum angle of 10 to 15 degrees; I as a retail trader know the parameters dictating whether an asset is rising or falling from the perspective of a day, swing, or position trader.

As a result, I know precisely when to buy, sell, or pass on any given financial instrument to virtually guaranty my activities in the markets each and every day lead to a larger trading account than existed when the day began.

(Or at least, this is what I'm shooting for.)
 
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expiated said:
So, in the same way pilots are aware that a Boeing 747 will lift off the ground by angling upward at two to three degrees per second with a maximum angle of 10 to 15 degrees...
More...

Whomever that guy is a moron, and should STFU.


Trust me. The bank angle can go way over 15 degrees before a problem occurs.
 
I finished my work at the library yesterday and wanted to spend a little bit of time relaxing doing nothing. I didn't really want to go to the park and take a nap, so I thought about what I might do instead, and decided to check out a couple of books on trading Forex to read just for entertainment value. I more-or-less read this one yesterday...

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