I noticed that the opening gap distorts even the superior trading model.I think if there were no gaps the wouldn`t be a need for any indicators and logging.
SCTlearning from scratch
- Thread starter jack hershey
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Hope to get my hands on your math-heavy description of PM someday.
Brahmastra posted in my old Parametric Measure thread, so I got an email notification which brought me here. Thanks for this batch, Jack.
In the mid '50's IBM published the orientation test and categories for each orientation. All people fall into one or the other of the orientations (vertical or horizontal).
I asked in a drill for a 5x5 matrix in order to show all possible bar representations. Redneck obliged with a left/right (horizontal) orientation presentation. Most others responded with vertical orientations.
All the "draw a straight line" stuff on ET is in a vertical orientation as done by potential traders. These people only recognize one of the four trend types.
Those who recognize Right Trend Lines properly, draw parallelograms properly using Left Trend Lines, and use interlocking fractals have a left /right orientation that can recognize dominance and non dominance in the four types of trend types.
All of this is why I posted the two column contrasting "reading" of market moves.
for the up down trader, the most testy facet is using the pairs of up down 's and in each of the three pairs getting a different sentiment change from the former to the latter. this permanent misbelief approach is one of the major causes of the CW emotional context of fear, anxiety and anger while in the markets.
You can recognize their self created dilemmas.
First they try to trade a DOM to non DOM up down. It may work this once. As it does, they expect it to work again and it comes to them in a DO to DOM sequence and they have stops hit if they used them. This is a losing context for theCW trader.
You read posts about the 10,000 hours.
It is worse, however. On the third pair the up down is the opposite of the first up down sequence. If no stops are used, they really get buried when they freeze in this context.
They could keep trading and see that the first context finally repeats AND it is different than the two most recent.
What does all of this then look like in CW trading? People learn over 10,000 hours to stay on the sidelines and only use "set ups" that fit their character and personalities. A deep set of fear, anxiety and anger is built over the 10,000 hours.
Redneck only trades stocks as he says. he position trades. you can discern when he enters as a horizontally oriented trader. No doji learned from him in her commodity trading (the CL, mostly) She has a collection of about 5 setups, I believe.
Recently one of the journals moved to a discussion of several early organizers of the sytstem of operation of the markets. If you go way back (even before ET), you can find the same names and then find their place in a set of three flow sheets (which I posted in the early days of the web) that outline the most recent100 innovations I noted for the last 400 years.
So as you see the great divide in trading is the personal orientation. the financial industry chose vertical and as a consequence, only makes money doing the collection of fees and commissions. RTH's are primarily short and non RTL's exceed them in long creating a net of long over the decades. I would say mostly no one has calculated this as a matter of being informed.
I probably should post a series of eye opening data that is required of the researchers of how the sytem of operation of the markets work.
when a person can recognize the triad orientation of nature and can also see it in the neurological operation of humans, then he can do the full extraction that is possible.
just notice that I have taken you through the frustration of those who do not know they know. I have explained the consequences they continue to endure. This includes how survivorship works also. I explained all of this to you using the tirad of failure and the triad of success.
I have declined the usual intervies of the usual suspects and I have argued through potential appearances as a technical market advisor to CNBC four times. They do understand how destructive to CW the true facets of the system of operation of the market can be. Using a guiloteen (sp) on TV is not going to happen for my part.
So most money is made in markets using fundamental analysis by the pro's. WJO'N picked up the pieces and used his intial earnings over 27 months to set up his empire. He is so helpful. HTMMIS is a classic. He explains CANSLIM and uses ESP and RS to corral making money with money via fundamentals. This can use the parallelogram and its FTT to make money based upon high quality. Again extraction becomes a left/right enterprise.
WJO'N and I have reults that are "unbelievable" to the CW regime of the financial industry. when you fly into Omaha and see the "bigboy " issuing steam as the American flag waves, you also find simple oak desks and conservative living. Even though the Ogalala is shrinking, there is a long lasting attitute that facts provide the analysis for "knowing that you know". Long term investing is also just a matter of the trading cycle and timing it to make the full offer of the markets.
The independent variable is a leading indicator of the dependent variable and in the system of operation of the markets, anyone can anticipate in advance of taking the full offer of the markets. A left/right orientation is part of this.
Yes you are making a signifcant statement. The lack of degapping in all significant places does wreck totally the reading of signals from indicators.
BUT, that is not to say indicators are unworkable. thier inventors did the work long before the poor handling of data sets came into being with the advent of the PC and the printer. Platform designers and developers do not do a very good job and as a consequence remain as small parochial ignorant shops. their clients find them appealing since they are even more disengaged.
Over the last years I have done many workarounds to eliminante the above problems.
and there have been many discussiions with others who did not catch on to the contexts created.
I'm so glad to hear you are working in the Keynesian context of paradigm theory.
Those preceding Dow worked carefully to state, implicitly, the HS of the system of operation of the markets. (Particularly Granville and Dobbs as I mentioned a few decades back in the early days of the web).
The independent variable is the driving force. All HS's imply relativity. Thus Haskell and SQL become the coding systems for working the systemmic turf regarding markets.
All the misdirection precipitated by the myths believed by CW type practioners, keeps the running field free of any interference. All this malpractice and participation , in turn, firms up and smooths out the environment. Finally HFT, polishes the data to a very high gloss, all to our advantage.
The current hypocracy vis a vis cheaters in complaint of HFT is humorous in the least. Now it even has a political twist as the lobby money begins to arrive.
Thanks Jack for your reply on the topic.May be you`ll share your experience on this subtle matter.I`ve noticed that filters do work quiet well.There are many goo filters outthere,as Gaussian filter,Adaptive filters wich uses digital FIR filters - FATL, SATL, RFTL and RSTL,Roofing filter,etc...I found them quite robust until the gaps show up.I have intrabar degaping,but non of the programmers i have asked can do anything about intersession gaps,which sometimes catch me off guard.So i cant handle the opening gap and the filters after that go frustrated.Can you please suggest how to handle that?
Thanks
Are you sure you hired "programmers" and not fifth graders?
If you look in the JH software thread you will find at least two examples how this is done. Some software packages already have that feature and if you use google you will also find how others create gapless indicators.
I`m not sure if they are 5th graders or not but all of them suggest that there is no technic to override the intersession gaps in Ninja.I`ve tried at least 4 highly skilled c+ guys.If you are aware of the such c+ genius,please post their coordinates,or PM me.
I was under the impression Ninja is C# and not C++. If that is the case you are barking up the wrong tree.