Hi WeToddDid2:
Like your verbiage quite a bit.
But what do you personally say on this subject then?
Would like to hear your personal experiences and thoughts too,
if you have some time to share.
Thx much WeToddDid2
To all thee would-be traders out there....
- Thread starter truth101
- Start date
Like your verbiage quite a bit.
But what do you personally say on this subject then?
Would like to hear your personal experiences and thoughts too,
if you have some time to share.
Thx much WeToddDid2
Not sure how to do this on regular EOD candlestick charts. The bodies have many gaps and doesn't fit the model exactly, so feel compelled to investigate custom charting for this. Or maybe use number of periods before breaking SYM s/r as a custom "timeframe" (period) reference, but would perhaps also need to search for better SYM starting points.
Another attempt, but using HL-ranges thus less gaps (but then not using open and close as it would again complicate stuff):
I believe the 10 case geometry model is fine, but not sure how to find it in such charts.
The answer is: You don't do it! Switch to bar charts or use another application which can display bar charts.
Regarding gaps... either:
- Use applications like Ninjatrader, Sierra Charts, etc. which can create a de-gapped chart or display de-gapped bars as indicators.
- Later in the evolution of this method mentally degap.
- Measure the difference between the bars and move your drawn line accordingly up or down.
- Ignore the gaps and simply connect highs and lows. <--- For now this should be fine.
What Frenchfry contributes is accurate and precise. He has sage perspective and has provided clarity for me where there was once confusion.
De-gapping brings up the concept of "Two levels of Awareness".
Each level of of awareness is an arbitrary distinction. We use it to facilitate understanding.
For example consider a coffee table. Through our five senses we perceive the table as solid. This perception has relevance in our immediate environment. Having a solid table provides utility and functionality.
Through the concepts, experiments and tooling of modern physics, we extend our five senses and come to another perception. The table is mostly empty space.
This awareness, though not entirely useful in day to day living, gives a larger context by which a greater understanding of the reality we find ourselves within. It has also allowed for all the modern technological conveniences we take for granted.
The tools at our disposal and that we have facility with determine how we perceive a problem and subsequently our solution to that perceived problem.
We can put aside degapping for the moment and do as FF suggests and focus on connecting the H's and L's to build tapes. Know that it's something one will naturally gravitate towards once some other more general pieces are in place.
Before we deconstruct the open and closes of a bar, let's utilizes the 10 case model. Doing what you did with the 2nd chart, do that with the model. We are looking at two bar relationships. With that in mind, drawing as you did with the above chart, do that with each two bar relationship. The length of your lines would project past the second bar into empty space. In this model example, it would project out the distance to include the coming third bar (not out to the edge of the sheet). A simple hand drawing would work.
This is the empty space that price on the coming third bar will either:
1) Be within the bounds.
2) Pierce one of the trendlines with it's H or L yet close within the bounds.
3) Pierce one of the trendlines with it's H or L and close outside the bounds.
When one case is true, the others are false.
With this complete, the next task is to color code the two bar relationships. There are four cases that get colored the same. These are the internals. Notice they make a smaller diamond formation as the larger model does. We know that when price is contained with these internals, price is contained by the "Shadow" of the previous bar. The convention is purple lines for the bounds with the interior a shade of yellow.
If we add a third bar that is contained with the bounds, we get the ten case - Laterals.
Laterals are defined as a three bar relationship where the H's and L's of Bar.1 and Bar.0 are equal to or within the H and L of Bar.2
Back to the chart, notice what volume does at Sym. Notice the volume of the bar prior. Notice what volume has to do for price to move directionally past the "lines in the sand" you've created to support a concept known as Laterals.
We are working with EOB atm. The price cases at this level of working does not get defined by us until EOB.
In your second chart notice the rtl of the bars for May 17,18. Notice what price did in relation to this line. In addition, on the 26th, the CW view of support becoming resistance comes into view.
Seems bar before SYM being formed is often higher volume (and higher volatility), while the bar forming SYM is less volume and always less volatility (per definition). Thus modelling a relationship between volume and volatility (timing). Maybe first bar with low volume before forming SYM makes lateral less significant too?
Seems lower-volume breakouts of laterals maybe less significant, and you can track breakout of volume from volume of bar before the SYM-forming bar?
17-18 RTL broken by 26 high volume breakout. Do you mean resistance becoming support by 25-26 SYM boundary? Lots of confluence in that area, both for trendline and horizontal lines.
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See following image for debrief.
If we start with your pic, the addition third bar that you drew, change the two-bar internal formation (Internals, Formations) into a Lateral. All four examples fall into that category.
This is known in CW as chop or sideways market. It's just a subfractal where advanced experts are trading in faster timeframes. Beginners and intermediates would be wise to exercise caution within these zones of trading. You, in an earlier post, sussed out the prime entry for an anticipated event resulting from a turn.
In the debrief pic, if we look at the hitch (equal high, equal low) in the center. The blue dotted zone is the Hitch. The Pink doted zone is a Sym. When we use the model, every new bar we evaluate starts at Sym.
If by the EOB we see an STB. There is only two possible paths to get there;
1) Sym->FTP->Hitch->STB
What is the other path?
The pic also has the color coding of all the price cases.
We also see the addition of trendlines. In looking at XB, a long trend is defined by the the placements of points 1, 2, 3. Drawing a line through 1 and 3 always gives us a right trend line. The market has symmetry, so the opposite is true as with the XR.
Sometimes pt2 is on the first bar, sometimes the second. Volume will support determining which.
We can also see the path from XB->STB-> OB starts as long sentiment, crossing the rtl and becoming a short sentiment. The same is true for it's opposite the STR.
Interesting enough, if the path included a Hitch->STB then that is a different context. Even though the STB is the same bar, how that bar was built gives an indicator of the current dominant sentiment. Just looking at the bar itself at EOB misses the opposing non-dominant force that is always ready to exert dominance depending on the entry, exit and reversals of market participants at different skill levels.
What's interesting about the hitch is that once we get there, the XB and XR are not possible.
The next task is to take your second chart, use bars and draw more trendlines. Our goal is to build tapes. Tapes are drawing one of the three types of trends between every combination of two bars.
As a tape gets longer with each successive bar, a picture will start to form. The run of the tape has ends and a middle. The ends are where the tape starts to move in the opposite direction, creating an opposite leg of price movement.
The convention is to use light thin black or gray lines drawn only as far as the H or L of the second bar in every two bar combination.
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boy I am sure happy this is so simple... geez.... I trade off a very very simple chart...I used to plot out all kinds of stuff, all it did was confuse me and keep me out of trades, by the time I decided what it all meant the trade was gone...
I won't say who it is (hint: he is one of the richest most successful billionaire investor ever) who
last I heard does all his analysis by hand and does not have a computer in his office. Think about that!
I won't say who it is (hint: he is one of the richest most successful billionaire investor ever) who
last I heard does all his analysis by hand and does not have a computer in his office. Think about that!
It must be Baron Rothschild
"Old Baron Rothschild's recipe for wealth winning applies with greater force than ever to speculation. Somebody asked him if making money in the Bourse was not a very difficult matter, and he replied that, on the contrary, he thought it was very easy.
"That is because you are so rich," objected the interviewer.
"Not at all. I have found an easy way and I stick to it. I simply cannot help making money. I will tell you my secret if you wish. It is this : I never buy at the bottom and I always sell too soon."