Xmas Rally Has Finished.
- Thread starter GrandSupercycle
- Start date
Since there is no timed interval with a linear relationship between time and price you must redact price down to its fundamental component volume.
My system is designed to work on bars in powers of 7, like so 7^1, 7^2, 7^3, ..., 7^6, and those are the only constant volume bar chart intervals you should base your decisions on, because it will eliminate the variability of every timed interval, while giving you a logical method to place trades knowing how fast the market is trading, which varies by volume but this is the only method that does this.
So, 7^3 bars, and each bar defines what period? Probably one day.
woops, meant to write 7^4.
Sorry, I don't understand that. Volume required to generate a particular unit of price change? How do you define that?
I wish I had access to volume. Volume doesn't appear to be an option with FXCM, and I miss it. I used to rely on this to identify a breakout - converging bollinger bands followed by a burst of high volume.
No more making of fun of you Beau, you have an interesting idea.
Yes, but it's a method, and 6 or 8 do not redact as well because 7 is the magic number. At its least largest increment of 7, think about ticks coming in. You have 1,2,3,5. That means that the first ticks and the first contract of the last tick equals the 7 contract bar for that sequence.
The 6 and 8 bars do not perform as well, and it is simply by logic that I understand this. Powers of 7 are obviously the best units to use because any smaller or larger and the chart is not as logical.