Compare & Contrast with Christopher Lewis

Discussion in 'Journals' started by expiated, Oct 8, 2017.

  1. expiated

    expiated

    What's the difference between using the "Fifteen-minute Interplay" chart configuration with USA Indices as opposed to using it with foreign currency pairs (Forex)?

    Fifteen-minute Interplay.png

    There are only two that are really significant...
    • The deviation level on the 15-minute price flow channel is 0.02% when trading Forex, but is 0.06% when trading indices.
    • Entry and exit levels based on "local" reversals above and below the 15-minute and 30-minute price flow channels are recommended by the six-minute baseline on Forex charts, whereas this role is filled by the eight-minute price flow channel at 0.04% deviation on index charts.
     
    Last edited: Feb 28, 2024
    #891     Feb 28, 2024
  2. expiated

    expiated

    Under normal circumstances/typical conditions, when do you expect to see the intraday trend of foreign currency pairs make a U-turn/regress toward the mean/succumb to mean reversion?

    Screenshot_4.png
    1. The 0.16% or 0.32% or 0.50% deviation level of the four-hour price flow channel, or if not...
    2. The 0.45% deviation level of the eight-hour price flow channel, or if not...
    3. The 0.30% deviation level of the 12-hour price range envelope, or if not...
    4. The 0.30% to 0.70% deviation level of the 24-hour price flow channel, or if not...
    5. The 0.80% deviation level of the two-day price range envelope, or if not...
    6. The 0.70% to 1.35% deviation level of the four-day price flow channel.
    But don't think that you're witnessing such reversals in progress until it's suggested/confirmed by the 30-minute price flow. And even then, you have to be ready to "go with the flow," exiting your positions or reversing direction should the 30- and/or 15-minute measures dictate your doing so.
     
    Last edited: Feb 29, 2024
    #892     Feb 29, 2024
  3. expiated

    expiated

    Instead of using the six-minute baseline on Forex charts, use the six-minute price flow channel at 0.02% deviation.
     
    #893     Mar 1, 2024
  4. expiated

    expiated

    Screenshot_6.png
     
    #894     Mar 2, 2024
  5. expiated

    expiated

    Screenshot_7.png

    On one of your most frequently used chart configurations, you were relying on the four-hour price flow channel at 0.20% deviation for this purpose. However, the "back" side of a sloping eight-hour envelope at 0.12% deviation would probably be a better choice in that it is a more stable measure that fills the same role, but in a more uniform manner.

    Moreover, as indicated in Post #894, beyond 0.16% deviation you'd be entering the support/resistance levels of one or more slower channels anyway.
     
    Last edited: Mar 4, 2024
    #895     Mar 4, 2024
  6. expiated

    expiated

    Screenshot_6.png
     
    #896     Mar 5, 2024
  7. expiated

    expiated

    At what levels do you begin paying extra close attention to price action in an effort to recognize when a given currency pair is establishing the daily high or daily low, as signaled by a reversal in the direction of the two-hour price flow channel?

    [​IMG]
    1. The 0.40% (rather than 0.30%) deviation level of the 12-hour price range envelope, or if not...
    2. The 0.30%, 0.70% or 1.00% deviation level of the 24-hour price flow channel(s), depending on whether this price action is trending, and if so, to what degree, and/or...
    3. The 0.30% or 0.80% deviation level of the two-day price flow channel, depending on whether the measure is sloping, and if so, to what extent. (Based on the previous entry, reversals could take place at levels as extreme as 1.50% to 2.00%.)
     
    #897     Mar 6, 2024
  8. expiated

    expiated

    The more conservative three-hour measure evidences greater stability and is safer (more likely to signal genuine, bona fide reversals).
     
    Last edited: Mar 7, 2024
    #898     Mar 7, 2024
  9. expiated

    expiated

    Screenshot_4.png
    If you look at a daily chart, you'll note that the maximum pullback in the overall (i.e., the four-day) price flow tends to be at about 0.85% deviation. However, this happens only once every few days, and it sometimes takes up to three or so days before a pair finally pulls out of such drawbacks.

    And yet, if you drill down to a more detailed time frame, you find that the previously mentioned 0.30% to 0.80% deviation levels of the two-day price flow channel are not of much greater use either; nor are the 0.30%, 0.70% or 1.00% deviation levels of the 24-hour price flow channel(s).

    So then, to find pullbacks that ARE likely to end up being the high or low for the day on a daily basis, your best bet is it watch for candlesticks to tag the upper or lower band of the six-hour price range envelope at 0.18% deviation—whichever side happens to be on the contrarian half of a sloping 12-hour price range envelope.
     
    Last edited: Mar 7, 2024
    #899     Mar 7, 2024
  10. expiated

    expiated

    Screenshot_4_edge.png
    If a pair is trending with monster momentum, corresponding pullbacks will not even come close to the contrarian band of the six-hour price range envelope at 0.18% deviation. (You pretty much know that such conditions are in effect when the slope of the hourly trend surpasses the threshold level designated by the upper or lower band of the lower-panel price anomaly channel AND the upper or lower band of the "scratchy" black tube is painting to the exterior of the gray, 45-minute prince range envelope, as illustrated by the image posted below. And by the way...if you enter a position during such periods, you are almost guaranteed to enjoy a profitable outcome.)

    you_missed_this_run.png

    In any case, under such conditions, rather than look to enter positions on the contrarian side of the (purple) six-hour measure (which IS possible at the very beginning and very end of the interval of time pictured here), anticipate doing so at the contrarian side of the "scratchy" black or bold gray measures instead (see the yellow circles in the image that follows)...

    entries.png
    :thumbsup:
     
    Last edited: Mar 9, 2024
    #900     Mar 8, 2024