Choppy versus Trending

Discussion in 'Trading' started by abattia, Dec 1, 2009.

  1. No.Heat

    No.Heat

    The best way to answer this golden question is by examining the big picture before the open.

    Looking for things like premarket trading well above resistance or vice versa. Be prepared to get faked in the opening minutes in case it's a breakout failure in which you would need to reverse your analysis in the heat of the moment.

    No Heat
     
    #51     Dec 3, 2009
  2. Thanks, Heat!

    ... and also flattered to be the location of your first posting.

    Welcome to ET!
     
    #52     Dec 3, 2009
  3. No.Heat

    No.Heat

    Thank you friend, hope I was of some assistance.

    Couple of additional tidbits using resistance as an example.

    - Where are we opening in relation to the predominant trend ? Is there a predominant trend ?

    - Are we opening at resistance, below resistance, above resistance ?

    - Are we gaping up above Resistance ?

    This is the proper homework required to be prepared for the open.

    Good trading.

    No Heat
     
    #53     Dec 3, 2009
  4. NYCMB

    NYCMB

     
    #54     Dec 3, 2009
  5. NYCMB

    NYCMB

    Hi Jack,

    Could you provide a currently updated "Hitch" example? TIA
     
    #55     Dec 4, 2009
  6. SK0

    SK0

    Hitch happens when the high and low of a bar is the same as that of prior bar.

    Hitch would need to appear in a forming bar prior to become a stitch black or stitch red which could later develop into an OB.
     
    #56     Dec 4, 2009
  7. Here is a paint of the current set of cases. It is marked up from a session where people were learning to log in real time.

    There were two reasons for doing the logging; they fall under the topic of "Tomorrow's Newspaper Today".

    In trading there are three Q's to have the answers to:

    1. Where is the market in its cycle?

    2. What is next?

    3. How fast is the cycle proceeding?

    As you see in chit chat today these are esoteric questions for the majority of traders. For me and my followers (lol), as a guru (LOL), I insist they use a high speed ball bearing ouija board to ID a letter which is assigned to the case. The hitch is a "C".

    The ouija board is especially designed to deal in a quant manner but it is a narrow one (pseudo-scientificially unverified). No one apparently has been able to check out adjacent bars in throery or practice to determine that these are the cases available. In future years the NSF will probably fund research at MIT to substantively determine these and all the additional ones they discover as well.

    For me, and my followers, we use all of them as information provided by the market.

    As you see under H, I use the "shadow" because "the shadow knows" as they say.

    Two additional facets are in the space as they say: A routine and a pattern.

    The routine destroys the OODA approach of CW. The reason is that OODA leads to emotional fear, anxiety and anger; namely the "unknown".
    (Google Gambling from which some people GAM to get BLING, as is well known).

    Given minds and their functionality, we built ours so they are totally differentiated. We use finite math as a consequence of market dictates; namely binary vectors.

    Anyone from fifth grade on up can reason through why the market has only one pattern: B2B 2R 2B or by symmetry: R2R 2B 2R.

    See todays' chart for a R2R 2B 2R starting at an FTT on bar 16 and going to bar 28. It was three trades for me. Oh!! Whoa!! and Whoopie!!!!! in my guru lingo for complex patterns like three price moves that make up EVERY pattern. On a ouija board, the pattern simply appears in the order of the alpha-numeric order of events. There trades one per portion of the listing. Naturally, these parts of the board are reinforced due to their prime usage.

    See the Tuesday before Thanksgiving for the calls of each of the price moves of Wednesday following. I provided these esoteric not pseudo-scientifically verified calls for the pleasure of traders who wanted to make money on Wednesday all day long on Wednesday.

    The reason why the detractors did not correct any of the calls was because they also were going to do those trades just as flawlessly on some day of their choosing.

    We have cases, we have a routine, and we have a pattern.

    M A D A replaces OODA which is a gambling sequence. In OODA the bet is placed on D. And the bet is tested on A. O and O are Observe and Orient in order to place the BET.

    My opinion on this OODA is that the CW crowd that uses it has a high failure rate for those who actually trade. The reason most people do not use OODA is that they are broke, have no accounts and have learned failure. I am saddened by the continuing effort made by most traders to learn, find an edge and invent a way to trade according to their character (Gamblers).

    Science is the basis of the pool extraction paradigm. It uses two hypothesis to deduce all of the paradigm. Two parametric measures emerged. Volume is measured by either of two binary vectors: increasing or decreasing. The measure of volume dictates the orthogonal choices regarding price's binary vector: contining or changing.

    In the pattern volume goes P, T, P, T, P. Correspondingly, price has a move for P, T, P; a move for P, T and a move for T, P. the first move is a reversal; the second move is a retrace; and the last move is a resumption of the trend.

    This is extremely esoteric, apparently.

    Cases A and B represent trending and are, respectively HH's and HL's or LH's and LL's. This is how money is made.

    All the other cases move price forward so the legs of the pattern may be completed. These include C through J.

    The relationship of adjacent bars changes as the last bar of the adjacent bars forms. This is a mini version of the pattern unfolding. An order of events happens and it leads to cases A or B.

    Finally and very nicely, these things also are nested as interconnected fractals. When trading, knowing the next slower and faster fractal order of events prvides a very certain neighborhood for making money all the time by having answers to the three questions for each fractal. So, in fact three ouija boards are used. One hand and a dick is used, respectively. Most women have dicks immediately available for this since it makes so much money. The generic name for one of these persons in Arizona is a "zonie"; many are found in San Diego in the summer months.

    A reminder, most of my exploration was done before the PC. I am now over 20 by five decades and nearly six.

    Cases>>>patterns>>>nested fractals>>>MADA>>>>continuing answers to three questions. AND a fully differentiated mind.

    Getting the mind differentiated takes work. Work is largely converting short term memory to long term organized memory. one thing created short term memory: doing drills. Sleeping converts short term memory to long term memory. We sleep on our ouija boards, all three are needed obviously.

    There are some really dumb fucks out there, mind you. Read them carefully as a warning to you. They prove that there is a point of no return in becoming a trader. OODA is a trap that creates fear anxiety and anger. each of these three elements have been proven to defeat traders in being rational. Failed traders can go a step further we found out on ET: OCD is the standard result.

    Today there have been three main FTT's up to this point. In terms of the ATR, we are way past 1 ATR at this point; especially if sub BBT's are traded @ three moves per sub BBT.

    Five years at ET were spent putting down the details of the paradigm, its applications and the Q's that can arise. How long does it take to learn to drive a car. Budda monks begin at 8 or 9 after they have learned to read and memorize. At 25 they have been through five level of training and debate. A 71 page pamphlet explains one aspect of this, the knowing that you know aspect. Each of te various monastaries has its own set of texts for the process, not all monks are trained alike; it is not Ford Motor Company.

    The shortfall aspect of CW is that a person doen't learn to "know that he knows". The result is the academically measure hearvy hitter condition: fear, anxiety and anger. And, of course, the financial industry cannot "beat the markets".

    If any person, who has not gone past the point of no return, chooses to, he CAN differentiate his mind for trading. It IS just like any other learning process. Learning to trade cannot be approached without thinking critically all the time. This means that approaching trading as "learning to make money" leads to failure. The subject of learning is learning how markets work. It is NOT an inductive process but instead it is a deductive process.

    A hitch is just two bars that are equal bars.
     
    #57     Dec 4, 2009
  8. Ezzy

    Ezzy

    From Thursday's chart:
     
    #58     Dec 4, 2009
  9. Speaking of amateurish NLP, won't you be surprised at how remorseful you will feel about bashing elderly Mr. Hershey on the day you hear of his passing? (With apologies to Milton Erickson for paraphrasing his most famous therapeutic intervention.)
     
    #59     Dec 4, 2009
  10. SK0

    SK0

    I believe "C" means "continue" or more specifically "wait".
     
    #60     Dec 4, 2009