ProfLogic's Method

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Here is a point of confusion for me.

On page 13 of the thread there is a chart posted by Prof which shows a 343v chart with the histogram in which he shows oscillations of the histogram as entry points for a trade which has been confirmed on the other two charts. Is this method no longer considered valid? :confused:

I've attached the chart which was originally posted by ProfLogic on 12-02-2008.

Ron
 

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Quote from rsi77:

Here is a point of confusion for me.

On page 13 of the thread there is a chart posted by Prof which shows a 343v chart with the histogram in which he shows oscillations of the histogram as entry points for a trade which has been confirmed on the other two charts. Is this method no longer considered valid? :confused:

I've attached the chart which was originally posted by ProfLogic on 12-02-2008.

Ron
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Those are just large extended PF's of the Prime Bottom and top.
 
OK, so those arrows are not pointing to oscillations on the histogram, but rather price action patterns indicating failure to make a new low (blue arrows) or new high (red arrows) based on your Price Failure definition which was posted in a document elsewhere on the thread.

I guess you stated this clearly in your post.

Sorry for the misunderstanding.

Thanks,

Ron

p.s. I've reposted the PF definition document that was posted earlier (by someone else) to save any newbies the need to search for it.
 

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Quote from rsi77:

I've sent a request to Prof for book and TS indicators. But let me try to take one more step forward right now...

As I understand the 343 chart needs only the Erg line and not the histogram, and the "strength" chart requires only the histogram and not the Erg line.

The Strength chart is used only to confirm that the direction of the historgram agrees with the trade.

The 343 chart is used to define prime oscillations which will determine if breach has occurred (latest prime high is higher than next previous prime high in an uptrend, or latest prime low is lower than next previous prime low in a downtrend) or if a failure has occurred (latest prime high lower than last prime high in an uptrend, etc.).

The 343 is also used to pinpoint entry after the trade has otherwise been "approved" by the other two charts.

Is this correct?

Thanks.
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Rest assured, the 'book' will provide all the answers that you currently seek. I'm happy to help when I can, but keep in mind that I'm also still learning, so my word is definitely not gospel :-)

We do want to include both the erg and histo on the strength chart. I think it's safe to say that the erg line represents the 'trend' in our world - observe where the Prime Trending (erg line) Oscillations occur (+10/ -10 on the scale), while noting the associated areas of extreme price oscillations. Is price making higher highs and higher lows at each corresponding area (up trend) or lower highs and lower lows (down trend). Remember that price is always working toward the opposite Prime Trending Oscillation, after the latest one has occurred (PTO Support -> PTO Resistance -> PTO Support .. etc). We want to enter our trades with at least the 'strength' erg pointing our way.

I believe we can consider the 'strength' histo as more a shorter term momentum indicator. It is favorable to also have this indicator aligned w/ our intended trade direction, but not a necessity. Again, considering the rules, there will be times when the histo is going up and entering prime, when we are keying on a short setup (before the histo actually oscillates - and of course the opposite for long setups). This brings to mind a conversation I had this week, when another participant in the thread shared with me that it is safer to wait while price is consolidating before an actual price direction change begins (iow, price doesn't normally make "V" tops and bottoms). A good example of this can be seen on Prof's 2401 chart from yesterday (4/03) Observe the second blue arrow at the 15:20:43 area. Notice that price had been making LH's and LL's after the earlier breach HH. The first blue arrow entry doesn't have the added confirmation, as provided by the marked convergence between histo and priice which is present by the time of the second entry. Akin to price showing its hand while forming this area of support.

Sorry if this is all clear as mud. Remember Prof's repeated chants of patience - it will all eventually fall into place :-)
 
Quote from IWT2008:


I am no programmer so does that make the Ergodic from Esignal useless for this methhod?

If not I am still not clear on the 3rd Length input to use.

For 1 and 2 I used 49 and then 147 for the signal line.

Thanks for the assitance
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I am quoting myself to seek further assistance with the ERGODIC from Esignal.

Thanks
 
Here was an excellent gamers setup, using the 49,343 and 2401. The red timelines on the 49 and 343 are to show the sequence of how the 49 erg oscillated after the 343 erg, followed quickly w/ a pf for entry. I should note that the trade was taken from a BR PPF HH (label chopped off on the 343 snip) which increased the risk factor. However, in this scalping realm, all other conditions were giving the green light :-)
 

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Quote from mephistoII:

Here was an excellent gamers setup, using the 49,343 and 2401. The red timelines on the 49 and 343 are to show the sequence of how the 49 erg oscillated after the 343 erg, followed quickly w/ a pf for entry. I should note that the trade was taken from a BR PPF HH (label chopped off on the 343 snip) which increased the risk factor. However, in this scalping realm, all other conditions were giving the green light :-)
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Correct.
As a suggestion though, layout the charts left to right (slow to fast). We are taught to read this way so it is more natural.
 
My apologies to the group - the charts I posted earlier are totally messed up. I was comparing notes w/ another person this aft., and our charts were totally different w.r.t the ergodic indicator. Only after my doing a reload (Multicharts/eSignal) would my ergodic be correct, and then minutes later would once again be askew. This is quite disconcerting, now being unable to trust what I see on the screens. I'm running a Dell w/ 1.8GHz Intel dual-core, and 1 gig ram. I had been wondering whether my RAM was sufficient, and am awaiting delivery of an additional 4 gig. Would anyone have any thoughts concerning this problem?

I hope I didn't cause anyone to go cross-eyed, if they were trying to make sense of my charts, when comparing to their own :-)
 
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