@Handle123
No I did not backtest it, just based on observations while trading.
What specifically about candles/bars, price patterns are you recommending i learn?
I focussed on becoming a full time trader no matter how long it takes.
ES Journal | Divergence918
- Thread starter Iwilldoit
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@Handle123
No I did not backtest it, just based on observations while trading.
What specifically about candles/bars, price patterns are you recommending i learn?
I focussed on becoming a full time trader no matter how long it takes.
Good Examples at what I require for "Swings" and mini swings.
Mini Swings which is more than half length of ten day ave swing length allows me to restart using a low pivot of high pivot to determine 7-10pts with 8 points being ten day ave.
When I am looking to do counter=trend trades, some require to be in this zone of 7-10points where-as if it a mini swing, time stops get shorter on counter-trend trades.
I know if sounds confusing, but it allows me to be more conservative when doing counter-trend trades.
Mini Swings which is more than half length of ten day ave swing length allows me to restart using a low pivot of high pivot to determine 7-10pts with 8 points being ten day ave.
When I am looking to do counter=trend trades, some require to be in this zone of 7-10points where-as if it a mini swing, time stops get shorter on counter-trend trades.
I know if sounds confusing, but it allows me to be more conservative when doing counter-trend trades.
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@Handle123
Interesting chart. How are you defining the pivots to calculate the swings and mini-swings? I can think of three ways to calculate them:
1) Zig-zag pivots: Extreme of price movements above threshold in alternating directions. Major issue with this is it doesn’t detect separate consecutive swings in same direction very well, e.g. up, chop, up.
2) Time pivots: Highest high/lowest low within certain time before and after. Good for detecting past pivots but not so good in real time since have to wait minimum time.
3) John Hill pivots: Penetration of low/high in recent highest/lowest bar. Maybe applicable for longer term bar charts, e.g. 5-, 10-, 15min, etc. but won’t detect these swings and mini-swings on 1-min bar chart.
It’s hard to tell what method you are using from the chart. Maybe a combination of zig-zag and John Hill? Or is there another way that I’m missing?
Interesting chart. How are you defining the pivots to calculate the swings and mini-swings? I can think of three ways to calculate them:
1) Zig-zag pivots: Extreme of price movements above threshold in alternating directions. Major issue with this is it doesn’t detect separate consecutive swings in same direction very well, e.g. up, chop, up.
2) Time pivots: Highest high/lowest low within certain time before and after. Good for detecting past pivots but not so good in real time since have to wait minimum time.
3) John Hill pivots: Penetration of low/high in recent highest/lowest bar. Maybe applicable for longer term bar charts, e.g. 5-, 10-, 15min, etc. but won’t detect these swings and mini-swings on 1-min bar chart.
It’s hard to tell what method you are using from the chart. Maybe a combination of zig-zag and John Hill? Or is there another way that I’m missing?
Looking at it again I think I’ve got it. You’re using zig-zag with a threshold of 1/2 the average swing length to define new pivots. What was throwing me off was the horizontal red lines and corresponding small dots, which seem to be the subset of minor pivots (calculated using John Hill pivots?) that form a triple top/bottom or head-and-shoulders pattern. Correct?
Just tad more than 50%. The chart is from a guy I am mentoring new traders always add things I never use, LOL I don't remember John Hill's pivot, but I often forget where I put TV remote.
John Hill's definition of pivot point is cyclically defined along with swing:
"Pivot Point (PP) - A top pivot point is the highest point reached in a swing prior to penetration of the low of the top day. A bottom pivot point is the lowest point reached in a swing prior to penetration of the high of the low day.
Swing - The movement from one pivot point to the next."
Taking a closer look, those red dots probably aren't John Hill pivots. Seems more like zig-zag with a 1 point threshold, but hard to tell for sure.
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Well none of that concerns me other than rules I use, neither your PP or swing definitions you have do I agree or use. But am sure I used those in my youth.
I bought this book,
how about Bulkowskis chart patterns website? http://thepatternsite.com/chartpatterns.html
@Handle123
@Handle123
Quite confusing.
So what is the purpose for calculating these swings? to determine targets? or trend direction?