Registered: Nov 2006
04-19-12 07:58 AM
Quote from baro-san:
You can't have it both ways: either the market has a fractal structure or it doesn't, trend and no trend. If the OP decides "not to sit" and trade each leg, his problem doesn't go away because each leg has the same three move structure, and he faces the same question but one fractal faster.
Yes, Jack mentions this all the time...
Quote from jack hershey:
The part of your ATS that is plunking BUY and SELL needs improvement.
Indeed! as has been judged.
You are getting fairly close as one of your paragraphs that describes an FTT indicates.
Trending trumps the R or S values. So far you do not deal with the nesting of fractals. At the stage of dealing with nesting of fractals gets on the table and handled, then consolidation goes away. You then see there is no consoludation in markets. Convention names it and defines it BUT it is not there in the sense of extracting money from the markets using an ATS.
Trading is a timing game and the timing is certain. Price is not where timing comes from, however.
I'm glad to see you have come up with a description of the pattrn that the market makes over and over. However, your description does leave out one variable.
What if the third movement of price was "not" weak (shallow is your specific term) as you think it is. Suppose it is stong (and you prove it to yourself one way or another so you believe it) AND suppose it fails a test that is measurable. The test failure combined with the strong effort is what BEGINS the next trend.
If you used this BEGINNING point and found out that the BO of the RTL comes next on the new trend (the trend overlap ends), what would your P&L become with all that added profit. You get to add the two legs of profit right now and you have those signals already plunked in. Plunk in the end of the third leg signal and unplunk the BO of the RTL since you are already on the right side.
This keeps you in the market all three legs and you already know that is when the three legs repeat with the opposite sentiment.
Indeed! Plunk it up to full force.