Quote from smwbbe:
snip....
The charts of yours that I've seen only show RTLs. I acknowledge that I'm reaching here...)
Thanks Again!
Those are rtl's, meaning they are sub trading fractal RTL's.
I do not superimpose the geometric trading channel PA trading on this paradigm where the leading indicator of price dectates the hold/reversal trading. PA trading is done with hold/reversal and NOT done with entry/exit and lots of sidelining time.
I added a failsafe to hold/reversal trading. there is no point being in the market and on the incorrect side of the market.
A potential trader must also be aware of the context of his "holds". As the trend type progresses through the succession of trend types, advancing from an incomplete tend to a not yet completed (complete trend to be) is a very significant step in the sensitivity for the learning trader.
as you may read in a lot of approaches in trading, there is risk for these people. they also do not allow themsleves to use any significant mount of capital in any trade. Often while keeping their trading on the chicken feed level, they use stops which are not tools of professional traders.
Context is everything in trading. This is achieved in only one way.
By naming each of the independent variable bars, the potential trader begins to get a handle on the system of the market's operation.
By using an ontological approach to define all parts (pieces) of the market, then a metaphyical "after being" can be used to manifest total order. The astronomical universe is a good example:
the moon revolves around the earth which revolves around the sun which forms a solar system that is part of a two armed galaxy which rotates about a core and where our galaxy is part of an exapnding universe of galaxies and interstellar space.
I see the trader at the core. He looks outward in all directions to see the "context" of the system of operation of the market.
The mind is so capable that trading is just a simple reading exercise.
The tasks to learn to read a language are simple and follow a set order:
1. learn the aphabet. (ten characters in price and 11 in volume)
2. use the alphabet to make words. (words are letters ending words as End Effects). There are 35 words grouped in sub sets of which there are 10 subsets. The language, therefore, has 35 words. A person IS capable of having a 35 word vocabulary.
3. Read what the market composes.
a. Annotate
b log the annotations
c. Use a and b to form a letter of the alphabet for each bar of the system of operation of the market.
4. read the words formed.
a. look at the train of letters to see the word in one of three lookup tables.
b. if the word is not yet formed repat 3 and 4.
5. If a word forms put it in the type of trend underway.
a. look in the log leftmost columns to see the "turn" sequence underway.
b. Anticipate by going to the Modrian Table to see the "next" turn possibilities (always two, thus there is always certainty since only one of the two will happen).
6. read the end of a profit sequence.
a. repeat 3, 4, and 5.
6. In the Modrian table find a c turn forming.
7. Go to the trading platform and use big money on the DOM to get the last tick of the turn (carve the turn). Use 10 to 12 other leading idnicators of price to help the carving (always use STR/SQU for example)
So why do people not create languages to read and use them to make money? It is like starting a new business who's output is profits. This has been studied eloquently. Look up incubating in the business world. Turn to papers by professors at the Wharton business school. There Ethan Mollick , assistant Prof, looked at 48,500. See page 52 of B/BW.
What if ET had an incubator? Well I guess that would draw too many great trades as mentors.