Analyzing Market perturbations

Discussion in 'Technical Analysis' started by astral, Jun 4, 2008.

  1. astral


    I will from time to time post some profound indications which we derive from our OTR charts, volume and the use of the Pair (Index-futures) correlation.

    Hi Padawan:D
  2. Padawan


    What's up, Astral! :D
  3. astral


    Okay, here goes!:)

    for those who are interested incorporating the use of the pair dance:

    There are instructing how to put this up in Quotracker.

    I do not have the energy now to explain how the dance occurs, but I can tell you this: you are able to short/buy every wiggle in the market.
    you believe it or you don't, I don't give a sh..
    However, It's a tool that will, no doubt, kill you in the beginning. The smarter your ass is, the more you will lose.

    The knowledge comes from Jack Hershey, and by this I got inspired to dig deeper into this tool. I have not, at all, fully incorporated the intricacies of this tool, but I'm almost there. big moves are easy to recognize giving the appropriate context. Little moves is where I'm digging right now.

    The intricacies of the dance contain the following:

    The magnitude of the swing: signal
    The stickiness of the swing: Signal
    The oscillations of the peaks: signal
    The waves which occur after the peak: signal
    **No volume supporting: instant signal
    The flaws in it: signal

    It's really that simple: Just go put it up, and analyze. This tool works on every major index. The dance is the same, but the moves may be different

    The chart is from the AEX futures, the pair dance is very clear! Here's a spike bar, which are the easiest ones to reverse, because the signal is so huge! Note how there no volume supporting, you could've known only looking at the volume price would go down.

    More to follow later on:)
  4. astral


    • sssx.gif
      File size:
      72.7 KB
  5. astral


    Okay, here a more profound one.

    This is medium use, medium wiggle.

    Note the ciricles, on the dance curve, the top occurs after the swing, at the second oscillations. At times it if different, but then again, context and pace is different too!:)

    Note the huge peak, and then look at volume, it goes hand in hand.
  6. astral


    Okay, Hank, look at what I was telling you

    The dance, first it makes it's extreme, then does 2 extra oscillations.

    Also note the patterns I told you about. Let it sink in, do not think, just absorb. Remember what I told you!:)
    • ds.gif
      File size:
      90.2 KB
  7. astral


    Now look what happened:

    We got fine signal for 2-3ticks profit
    Notice the pattern I drew in, I knew price would spike just below my lowest horizontal line, we go long, spikes above my upper horizontal line, we short.

    Notice how Str/squ Also gave you the heads up (I'm using the ES-SPX here, but ER2 would give you a better signal)

    Str/squ is merely a dance, the extremes give you a head up when the reversal will occur. After 2 more oscillations the market reverses, confirming with the patterns spike.

    This occurs All the time on the ES. But, with an open mind, you know all the major indexes are ties up together.
    This means we do not only reverse one the ES, but instead reverse on 8 other indexes too!

    Hank, it gets even WAY easier when we add channels and gaussians, it's ridiculous!
  8. astral


    Hank, when looking at the "patterns" I drew in, be careful to now try to interprete or rationalize them.

    Look at it this way: The patterns I draw in are like water, Not like Ice. It's a dynamic pattern.

    The width of the pattern give you additional upcome price movements. I know this seems really complicated, but It's really not.

    Start with the Pair dance first, It enables you to take probably 80% of the markets movement(not High/low) in a day, with the patterns, you got 95%, so it's not a big deal:)
  9. astral


    oh boy, very volatile right now, but thousands of signals appear!

    Little head up, Hank, when the Market is REALLY volatile, the str/squ takes a higher fractal oscillations.

    Where's normally we would need 2extra oscillations to go long-short after the extreme value, we now have Huge oscillations which each give a signal.

    let me explain, Right now the market dropped REALLY heavy and strong, there for our signals where fractally bigger. However, after the peak, there was an upportunity to instant reverse, reverse back 4-5ticks- New huge oscillation, reverse, 4-5ticks later reverse back and Now we come to the third oscillations which stall/ends the huge move down.

    note: I use to ER2 Pair because they give much smoother signals compared to ES and especially YM! :)

    edit: Seems my analysis was Spot on, market instantly reverse up after the last huge oscillation, beat that!
  10. Padawan


    Great info, Astral. Thx for sharing. :D
    #10     Jun 4, 2008