You have seen in previous article than the 1st minute bar can help you reduce DOF (http://www.econometric-wave.com/articles/3/index.html) not only it can help but it is crucial to wait for this 1st min bar close notably in the case of forcing. For forcing see the guide or homepage http://www.econometric-wave.com/articles/1/home.html.html "When a target is passed without consolidation it is said to be forced and consolidation generally follows to retest that forcing zone". Forcing is THE KEY to understand HIGH VOLATILITY and profit from it. You can see some illustrations on statistics page these last days by clicking on the date column when these cases are indicated (http://www.econometric-wave.com/statistics/1/index.html). Nevertheless as BEGINNER you shouldn't trade these cases as long as you don't understand them fully as it implies countertrend, consolidation and backwardation in time that is to say more knowledge of market's cycle whereas the basic case in green/red only follows the one single rule. Once you master them you will love these high volatile days that most traders can't predict accurately but try to understand the simple cases before or you will get confused. To help you understand the importance of opening and of the model in general we will use a metaphore. Why use metaphores ? In an e-book called "How to become a supergenius on three wishes" the author says that the way to do so is to get acquainted with a new material with something that is already familiar. Genetic is more familiar to you than model's market since you must have learned it at school. And here we're going to make an analogy with genetic mechanism which are Information packing, transcription and alternative splicing: A biological cell is composed of proteins which are themselves composed of amino-acids. Let's pretend that these proteins are the analogs of the swings in market and amino-acids the analogs of waves which subdivide a swing. The cell doesn't contain the proteins at its birth but fabrics them. For that it uses an information which is coded not in the same form than proteins but in the form of DNA which is a double string of paired bases of nucleotides. By analogy, in our model, market somehow coded its information in a double-string which is our base and projection lines where each segment are the analogs of amino-acids composing the DNA, and where each point are also paired like in DNA bases - we call them "Duals" in our model. Moreover, for organisation purpose, the DNA is not a floating chain, it is folded by packing it into some proteins structures called histones. In the same manner our model shows that market waves are also condensed into a compact form that needs to be unfolded to be used. This stage is called transcription. This is done through the rules for interpreting our model. This transcription is not unique: depending on where the DNA is read this can give birth to different proteins sequences: this is called alternative splicing. By analogy depending on where the market opens different market waves can be generated with the same static structure revealed by the model.
See also http://www.elitetrader.com/vb/showthread.php?s=&postid=374402#post374402 Plectics: The study of simplicity and complexity by Murray Gell-Mann, Santa Fe Institute, Santa Fe, USA [and Nobel Prize laureate]
Illustration of how the 1st day of the month of November packed information for half of the month: http://tinyurl.com/x6hj <IMG SRC=http://www.econometric-wave.com/market/images/2003/december/dji/011203/1stDOM_nov.gif>
Do you see the Feynman LT at 9941.8 theorically - on the second green chart (LT=Local Top relative to a scale, Feynman effect = truncation of Max Potential by a parallel branch as explained in paragraph "complements" here http://www.econometric-wave.com/articles/1/home.html.html) : we've just done it with the High today at 9942.01 within 2 points. See previous examples of this strange Feynman-like effect on homepage or directly here: http://www.econometric-wave.com/mar...r/dji/141003/introduction_to_cycle_theory.gif http://www.econometric-wave.com/mar...-like-effect_dji_scale2_081003_for_091003.gif
We made the 9998 theorical pic - the thrust to 10003 was expected since today's projected 10002 : <IMG SRC=http://www.elitetrader.com/vb/attachment.php?s=&postid=387098>
For members of the old yahoo egroup I can't post to it anymore : these #@*%\ have blocked it because I have changed my provider and the mail is no more valid: It is the 3rd time I reported them the problem they answered me ... with an automated reply that just tells me the same solution again and again but it doesn't work: that's the problem with robots instead of humans . So subscribe to the new one that has been setup if you want to receive next mailing until yahoo solves the problem if they ever will. I will also use a direct mailing but only for those who have disclosed their email since I have authorised to hide it in the old egroup, but due to this problem it is not more authorised in the new one in case the same kind of problem occurs.
We have finally finished the development of our own chart system - after one year although we have differed it due to cost of programming - : was fed up with those "sophisticated" software package that don't even allow to draw and annotate trendlines automatically and easily. It will be totally interactive with statistics and decision aid directly on the chart (at the moment they are not yet available because we are in beta test): look and feel here (for the 12th session, next and past sessions coming soon): http://www.econometric-wave.com/statistics/1/intraday.html?pd=1 If you move the mouse over the bar you can see the quotes. We intend to make people do their own annotation on the chart.
We are still following this chart in fact but above ten times unit scale. We are not at the top yet I will post the chart to members this we (or even before).
i have a feeling that some day harry is going to finally tell us "GOTCHA!" and we'll all feel much better.