Saturday | August 17, 2024 Reworded Notes One of my primary goals when day trading any financial asset is to identify its corresponding "money measures," which is to say, the slopes of the fastest sufficiently stable indicators conveying the gist of the general overall directional drift of the intermediate price flow—measures which, if used as the arbiters for deciding when to enter and when to exit positions with respect to the intraday trend, will inevitably result in profitable outcomes. After that I look to identify the "micro measures," referring to the slopes of the fastest UNSTABLE indicators able to facilitate the accumulation of profits if positions are entered and exited in accordance with the direction suggested by the angle of the faces comprising the hills and valleys they form. The micro measures track the short-term trend, fluctuating within, around and beyond the money measures so that the legs of their journeys are often relatively short in duration (temporary, momentary and less significant). THE MONEY MEASURES: THE MICRO MEASURES: (I will create a chart/table for the Micro Measures after I have thoroughly memorized the Money Measures AND probably after a week's worth of practice accumulating gains using all the corresponding Money and Micro settings—assuming this actually happens.)
So then, I've begun the process of replacing all the parabolic-SAR-style trade alert signals I was using last week with indicators based on the money measure and micro measure parameters I've started memorizing this weekend, beginning with Forex...
The Money-Measure-Micro-Measure entry level alert for natural gas... And finally, the signal for crude oil...
"They" say it is a mistake to attempt entering positions at the top or bottom of a trend. But of course, that is exactly what Numerical Price Prediction is all about. So, I was curious what AI would say when asked the question... What are the pros and cons associated with attempting to identify tops and bottoms when trading financial assets? Pros Potential for High Returns: Successfully identifying tops and bottoms can lead to significant profits. Buying at the bottom and selling at the top maximizes gains. Improved Risk Management: Recognizing these points can help traders set more effective stop-loss and take-profit levels, potentially reducing losses. Market Timing: It allows traders to enter and exit the market at optimal times, potentially avoiding prolonged periods of drawdown. Psychological Edge: Successfully identifying these points can boost a trader’s confidence and psychological resilience. Cons High Risk of Error: Misidentifying tops and bottoms can lead to substantial losses. Markets are often unpredictable, and patterns can fail. Complexity: It requires a deep understanding of technical analysis and market behavior, which can be time-consuming and complex. Emotional Stress: The pressure to time the market perfectly can lead to emotional stress and impulsive decisions. False Signals: Markets can produce false signals, leading traders to make incorrect decisions based on perceived tops or bottoms.
MONDAY | AUGUST 19, 2024 One-Minute FOREX Money Measure and Micro Measure Configuration To determine in which direction you should be trading, ask and answer the following seven questions of and for yourself: Also, you should ideally be entering positions as candlesticks are bouncing off (or rejected by) the contrarian band of the XX-minute temporal support/resistance channel (see your handwritten notes for details).
Moreover, you basically want to be prepared to enter positions when the slope of the 20-minute price flow channel, as represented by the corresponding lower panel histogram, clears 0.016 or -0.016.
You've kind of already memorized the micro measures, and the chart sort of created itself as you were organizing the settings in your mind... Okay then bro, everything appears to be back on track. You're back to seeing days with a 100% success rate (assuming your open silver short position is still in-the-money 30 minutes from now); price action is developing or unfolding just as expected according to your forecast models; and you haven't significantly changed any parameters for weeks, if not months. So, go ahead and finish solidifying all the money-measure-micro-measure settings in your head and complete your book's final manuscript in accordance with the (culminating) protocols you're currently using.