On 10-case geometry and beyond

[tiddlywinks]

The "trade intraday" problem solver I introduced has nothing at all to do with a gap/de-gap conundrum you mention. It is all about making money! There is no conundrum.

Someone trading with daily bars, (generally speaking)would not be watching during the day. In effect, he/she is an end-of-bar "trader". In high volatility times, when a single daily bar is worth many thousand dollars... mere loss of money is only one category subject to substantial, perhaps even permanent damage. An end-of-bar trader would be well served to use faster than daily timeframes, and whatever JH methodology he/she wishes, to mitigate or sidestep such significant damage, and even profit shortterm, all the while maintaining the "daily" picture.

 

[baro-san]

The day-to-day degapping of the intraday charts insures continuity because the RTH, and the after hours markets, are driven by different forces, and have different players.

Degapping a daily chart would insure that we track only one of those two markets. That might be useful; I don't know.

I read that the overall market price is mostly dictated by the after hours contribution, which is also predominantly bullish. This could be used.

I don't have the data to back it, but several times I noticed that the turns are "phoned in" by the day-to-day gaps. It seems to be the case with the last turn too. Maybe I'm inventing ...

The 5 minute bar-to-bar degapping is a filtering that evaluates a price bar only from its OHLC point of view, and isolates it. The rdbms method seems to be a combination of Jack's original (price-volume) "pattern", and statistical data that defines end-effects. Probably, statistical data was collected on bar-to-bar degapped 5 minute charts (what spydertrader was working with when he faded out from the public eye), so the method works best on such charts. It might've been an unnecessary restriction; I don't know.

I believe that the 5 minute bar-to-bar gaps have two different causes. One is the permanent oscillation of the last trade between bid and ask, which is kind of a random noise. The other cause is the slope of the sentiment, that, when it is high, produces a price acceleration fast enough to be seen between 5 minute bars. I guess that you can identify which of the two is the case for a specific gap by looking at the volume level: high volume points to a likely acceleration, low volume points to a likely randomness. This can be used. I still don't see how bar-to-bar degapping would eliminate noise.

Unfortunately, excepting channeling Jack's spirit, we can't learn more from him (yesterday were exactly 4 years since he passed away). As far as I believe, spydertrader could still come back and lead us toward acquiring better understanding and use of the method, if he wanted.

 

[Sprout]

ESZ8-5m-181102-carryover

Opening bar will be lat 23, lat 14 and lat 5
Continue -> B-turn long to A-turn short to B-turn long
Change -> C-turn short to A-turn long
Overlap of trend -> C-turn to C-turn



Full day - scale kept at trading calibration.

 

[nir]

Hi all ,
the main goal remains to make money and because of that i like to think of it as "you get what you get and you don't get upset" .
degapping helps me most of the time in keeping fractal continuity across days, however sometimes it doesn't. mostly i can track it to a mistake i've made on a previous day(or two) which should have either accelerated or fanned a container.

in the past i would get stubborn and lose money trying to be right in my preflight analysis.presently i always carry the notion that i might
have been wrong and adjust if need be.
a non-dom traverse of a dominant channel can last the whole day, the whole day today might be an internal in a shadow
of a huge bar from yesterday, regardless it really pays off to consider the relative nature of things and start building some containers,
after all today is more important to making money than yesterday .

having said all that i don't employ the latest JHM 2.0 as discussed here but rather the basic fractal analysis that has been talked about in much older threads.

good luck to everyone...

 

[tiddlywinks]

Clean copy.
ES Daily Degapped + Gapped.

Degapped does not include today... 1-off code error. Oh well.

 

[Sprout]

Hi all ,
the main goal remains to make money and because of that i like to think of it as "you get what you get and you don't get upset" .
degapping helps me most of the time in keeping fractal continuity across days, however sometimes it doesn't. mostly i can track it to a mistake i've made on a previous day(or two) which should have either accelerated or fanned a container.

in the past i would get stubborn and lose money trying to be right in my preflight analysis.presently i always carry the notion that i might
have been wrong and adjust if need be.
a non-dom traverse of a dominant channel can last the whole day, the whole day today might be an internal in a shadow
of a huge bar from yesterday, regardless it really pays off to consider the relative nature of things and start building some containers,
after all today is more important to making money than yesterday .

having said all that i don't employ the latest JHM 2.0 as discussed here but rather the basic fractal analysis that has been talked about in much older threads.

good luck to everyone...

Hi @nir! You don't post much however the posting that you did do supported my effort in transference and I appreciated your participating with the drills in 'SCT learning from scratch thread.'

Hope you can offer your perspective more often,... Thanks so much!

 

[Sprout]

Result of the earlier carryover

The turn sequence crystalized into B-turn long -> C-turn short -> C-turn long -> A-B-A-B turns as move reversals. The first A-turn caused the larger channel long to fan until the final B-turn which resumed the fanned channel long.

The laterals ended at bar6 BO lat 10, bar9 BO lat21, bar19 BO lat41. Until bar19 no-wait on any internal price cases.

After the BO of lat41, and a non-Dom traverse short, price returned to the Dominant direction long which for the day ended near the high.

 

[Simples]

Clean copy.
ES Daily Degapped + Gapped.

Degapped does not include today... 1-off code error. Oh well.

Investigating degapped daily QQQ for some time while learning about JHMs, what stands out is that degapped charts, especially daily, tend to focus on intrabar "flow". Stepans examples earlier in this thread clearly show "flow" continue past large gaps, and should be enough to convince "there is something there". However, same can be said for cyclic analysis, you may find smaller movements also there.

Eventually though, past movements fade and is overshadowed by new information and volatility, so first priority to be on the right side of the market.

Several stuff may lead in the small, then one need to manage the trade, in order to scale it in the larger / longer context.

Thoughts on the actual chart: Degapped remains divergent bearish, so would expect at least one more reaction down. Problem is if market takes off with gap remaining, FOMO ensues, so better approach would be to be earlier, in sync with the market. This is where FS, EEs and gaussians may assist, if one manages to be there when the turns happen. Last turn seemingly non-dom, also supports some down reaction to find support.

 

[tiddlywinks]

Thoughts on the actual chart: Degapped remains divergent bearish, so would expect at least one more reaction down. Problem is if market takes off with gap remaining, FOMO ensues, so better approach would be to be earlier, in sync with the market. This is where FS, EEs and gaussians may assist, if one manages to be there when the turns happen. Last turn seemingly non-dom, also supports some down reaction to find support.

Using container method there was BO. 2 consecutive closes outside solidified, and Fridays IV, although slight, took away the IBGS or 2-bar completed sequence option. Additionally on Friday, BM from Wednesday was violated. Downslope gaussian is complete as well. There is an upslope container. It is a non-dom move. So yea, I completely agree, expect more downside once this non-dom container, pt1, pt2, pt3, completes.

As for d-gap... Maybe it is useful as an indicator. For pricebar formations/cases only. I will program it in Sierrachart to be such. I can not even consider it as a tradeable chart for all the reasons I have stated in the past. Case in point... up to 50 handle price differences exist in the clean degapped chart vs normal!!

 

[Simples]

Using container method there was BO. 2 consecutive closes outside solidified, and Mondays IV, although slight, took away the IBGS or 2-bar completed sequence option. Downslope gaussian completed as well. There is an upslope container. It is a non-dom move. So yea, I completely agree, expect more downside once this non-dom container, pt1, pt2, pt3, completes.

As for d-gap... Maybe it is useful as an indicator. For pricebar formations/cases only. I will program it in Sierrachart to be such. I can not even consider it as a tradeable chart for all the reasons I have stated in the past. Case in point... up to 50 handle price differences exist in the clean degapped chart vs normal!!

For degapped, absolute price is irrelevant, but relativity (as Sprout mentioned) is.