Iterative Refinement

[palinuro]

Quote from Spydertrader:

The above quote applies to everyone.

I assume you are looking for critical reflection on principles rather than a list of rules.

I think I would start from a somewhat different premise - more along these lines:

Perfect proportionality between Price (volatility, direction) and Volume (quantity) is used by this method as a theoretical norm.

Deviations from that norm are used to contextualize continuing price movement (as dominant or nondominant traverses of channels), and to provide signals for changes in price direction, as well as in the context of that direction (i.e, new channels).

The possible deviations can be enumerated, and the possible contexts can be enumerated, thus providing the ability (with much practice) to situate price activity at all times.

 

[TIKITRADER]

Quote from Spydertrader:



What else, besides what has already been posted, do you know about this methodology.

- Spydertrader

It is binary

 

[romanus]

Quote from TIKITRADER:

It is binary

It most definitely is, as it aims to recognize the change in sentiment. The absence of change by definition is a continuation.

Pt3 formations (channel) and volume formations ( gaussians) have a fractal nature to them. One of the manifestations of this fractal nature is that price moving from pt1 to pt2 on one resolution completes that movement by forming yet another pt3 formation on lower resolution.

The concept of resolution stems directly from the fractal nature of channels and does not necessarily coincide with arbitrarily chosen time frames on bar charts.

The resolution itself has a fractal nature to it and therefore profitable operation based on the principles requires application of WMCN logic, which to ME seems to be the cornerstone on which the trading these principles is based.

The market presents an observer with variety of signals, which continually reinforce the perception of the principles upon which the market operation is based in fact, however without the use of WMCN logic these signals do not form sequences (dominoes).

The application of WMCN logic is what allows to profit from the signals.

 

[romanus]

http://www.elitetrader.com/vb/showthread.php?s=&postid=1792888#post1792888

Quote from Spydertrader:

...unless one can 'see' the signals for continuation or change on each and every bar - pushing buttons serves no purpose.

- is one the most important guidelines as it applies to beginner.

 

[romanus]

http://www.elitetrader.com/vb/showthread.php?s=&postid=1798860#post1798860

Quote from Spydertrader:

... Do you quickly and accurately draw Channels and Gaussians and all other annotations correctly? If so, then you should be able to 'see' all the trends, flaws, formations, 1-2-3's, FTT's and FBO's without drawing in a single line on a chart. Can you do that? Yes? Move on to letter A. No. You can't do that? Then focus on making sure you are improving toward a place and time where you can annotate without thinking, without hesitation and without confusion. Otherwise, you have no reason to be pushing buttons.

is the other one.

 

[Talas]

Quote from Spydertrader:
What else, besides what has already been posted, do you know about this methodology

Sequences / phases:

Volume increases from pt1 to pt2.
Volume decreases from pt2 to pt3.
Volume increases from pt3 to FTT.

The FTT begins a new sequence.

An FTT can only occur after a pt3. A pt3 can only form after pt2. A pt2 can only form after a pt1.

RTL break on decreasing vol means we anticipate forming new pt3 for the current channel.
RTL break on increasing vol means we anticipate a pt2 forming in the opposite direction of the RTL which was broken.

Properly identifying which phase of the sequence the market is in is the 1st 'A' in the previously mentioned M.A.D.A.

- Talas

 

[Padawan]

Quote from Talas:

Sequences / phases:

Volume increases from pt1 to pt2.
Volume decreases from pt2 to pt3.
Volume increases from pt3 to FTT.

The FTT begins a new sequence.

An FTT can only occur after a pt3. A pt3 can only form after pt2. A pt2 can only form after a pt1.

RTL break on decreasing vol means we anticipate forming new pt3 for the current channel.
RTL break on increasing vol means we anticipate a pt2 forming in the opposite direction of the RTL which was broken.

Properly identifying which phase of the sequence the market is in is the 1st 'A' in the previously mentioned M.A.D.A.

- Talas

Hi Talas, nice going. Just want to remind you...

http://www.elitetrader.com/vb/showthread.php?s=&postid=1840934&highlight=three+ways#post1840934

 

[Mr_Black]

Price extremes forms tapes and channels ... a container .....and volume shows pressure against container walls... from here the big ???? is where is the price now and what is the pressure ...Jokari Window is not in the time fractal boundaries Jokari Window is continuous action... it is something like Law of Gravity for all price and volume action ... but whit 2 directions Up and Down...

 

[romanus]

Quote from Padawan:

For example, I can repeat the Jokari window, but how it applies to direction is what gets me. In Mr_Black's example (thanks a bunch, Mr_Black) I can see the relationship between price volatility and volume, but the direction part....

Let me try to spare you the trip to the rabbit hole. I may have inadvertently mudded the waters with my quest to apply Jokari window literally. I was hoping to find the missing part as in "YM leads ES" statement. Good luck applying that one bar to bar. But when you add "at times of change" the world is suddenly illuminated.

Unless corrected I consider Jokari window concept right there with y=f(x). Do you really use y=f(x), which is way to abstract, for anything useful you want to do with calculus or do you use something more specific like y=sin(x) to do something tangible in engineering.

The point is: when asked http://www.elitetrader.com/vb/showthread.php?s=&postid=1878618#post1878618
the answer was given
http://www.elitetrader.com/vb/showthread.php?s=&postid=1878618#post1878618
channels, volume, gaussians, FTT were used there, no Jokari window.
So I am guessing that channels, volume, gaussians, FTT, etc. are to Jokari window, as y=sin(x) is to y=f(x). Less abstract and objectively applicable.
I am going to go out on a limb and speculate that channels and how price and volume behaves in them including FTT and how price BO's the RTL, etc., are the practical concepts stemming from Jokari window that are objectively applicable. Definitely applicable to the direction part.

 

[Padawan]

Quote from romanus:

Let me try to spare you the trip to the rabbit hole. I may have inadvertently mudded the waters with my quest to apply Jokari window literally. I was hoping to find the missing part as in "YM leads ES" statement. Good luck applying that one bar to bar. But when you add "at times of change" the world is suddenly illuminated.

Unless corrected I consider Jokari window concept right there with y=f(x). Do you really use y=f(x), which is way to abstract, for anything useful you want to do with calculus or do you use something more specific like y=sin(x) to do something tangible in engineering.

The point is: when asked http://www.elitetrader.com/vb/showthread.php?s=&postid=1878618#post1878618
the answer was given
http://www.elitetrader.com/vb/showthread.php?s=&postid=1878618#post1878618
channels, volume, gaussians, FTT were used there, no Jokari window.
So I am guessing that channels, volume, gaussians, FTT, etc. are to Jokari window, as y=sin(x) is to y=f(x). Less abstract and objectively applicable.
I am going to go out on a limb and speculate that channels and how price and volume behaves in them including FTT and how price BO's the RTL, etc., are the practical concepts stemming from Jokari window that are objectively applicable. Definitely applicable to the direction part.

Thanks, Romanus.