Let's talk about eliminating noise in the charts

[nooby_mcnoob]

Notice the pattern during today's session that appears many times per month. Drop at RTH open, and right around 10:30AM ET it reverses and rises through the afternoon. Super-easy to see on both charts. I wish I could predict those days. Bollocks.

Bro you trade futures and you don't use the overnight structure? ES during RTH bounced clear off of the low of a massive overnight bullish structure.

My preferred way to rape is RTY.

 

[deaddog]

I tried.

That's all you can do.

 

[SunTrader]

I just got back this evening from 4 day-er so I didn't trade at all today but ..... ES massive overnight bullish structure?

Looks like gap up last night then sidddddddddddddddddeways 10, 12, 14 hours to mid morning. No?

 

[nooby_mcnoob]

Bullish because it made no attempt to go down. Doesn't mean some sort of bull pattern like bull flag.

 

[Overnight]

Bro you trade futures and you don't use the overnight structure? ES during RTH bounced clear off of the low of a massive overnight bullish structure.

My preferred way to rape is RTY.

Good, please do. RTY, when it was TF years ago, raped me one summer evening. Get back at it for me!

As for the overnight structure? Yep yep...That hi/lo line always attracts my eyes like a moth to flame. But like every other signal/chart read, it can go awry. If I were not stuck in the trades I am in from the Friday drumming, I would have gone long last night after the Goldman Sachs shit all over the Omicron panic idea.

 

[nooby_mcnoob]

Good, please do. RTY, when it was TF years ago, raped me one summer evening. Get back at it for me!

As for the overnight structure? Yep yep...That hi/lo line always attracts my eyes like a moth to flame. But like every other signal/chart read, it can go awry. If I were not stuck in the trades I am in from the Friday drumming, I would have gone long last night after the Goldman Sachs shit all over the Omicron panic idea.

Yeah overnight structure is quite handy for some instruments sometimes. Can't be relied upon, but can be useful if in a strong multi-day trend.

 

[easymon1]

post them charts gents, hell yes! Thank you nooberino!

 

[jys78]

Zoom out.

 

[ph1l]

How do you eliminate noise in the series?

Here is one way.
https://www.mesasoftware.com/papers/ZeroLag.pdf
ZERO LAG (well, almost) By John Ehlers and Ric Way

 

[QTrader20]

It's reasonably straightforward to trade a chart like this:

I spent a lot of time trying to figure out how I could eliminate the noise. Options include:

1. Moving averages
2. Tick/renko/range
3. Volume/# of trades bars
4. Line-on-close

etc etc

None of these are truly satisfactory. Moving averages are too slow, 2, 3 need calibration and 4 is pretty much the second chart above.

None of above will work. No matter how many years you spend trying to squeeze out useful data from these indicators.