We may not need the plot, but the gauge tells us how many bars between the zig and the zag... this gives us a clue. This alone does NOT give us an entry. Once again, we are heading in the same direction. If you know the average range, then you know when price is about to run out of gas and possibly retrace. Also, you know if price moves X then it is most likely to move Y. That gives you the entry. If you have a statistical edge, then over time you win, just like the casino... but I know you already know that.
NTW: For the record, I am agreeing with you, not debating you. I am interested in your work. Perhaps, I'll learn a new trick or 2. Have you studied jjrvat's thread? P.S. Is this what you mean by link? Cause if it is, I HATE THAT. I want to see the chart and the text at the same time. To me, it's a pain in the (_*_) to have to click back and forth. And I like LARGE CHARTS. They are easier on my eyes. But since this is your thread, when in ROME...
this is true and something to be addressed large bars that run into these areas have a higher chance of break as does a narrowing base distance between either peaks or valleys in movement. as consecutive bars form on an attempt to reach the area of reversal shinking bars does statistically show less likely hood of breaking and a higher likely hood of resumption of trend at the area. with price movement yes that is exactly it if i know it will move x it is likely to move y but we need to take into account how the price is acting at the time.. this is why i use a %age it normalizes the movement where theyre may be excessive volatility and so the system adjusts widens distances and lowers positioning creating harmony in the system. Working wth the ebb and flow of the market. the statistical edge including precise entrance and stops and profit targets non curve fitted data and forward walked will turn u into the house.. the market comes to u to play u offer it the probabilities
thank you, i understand ur not arguing and i am happy i actually get to the end as i have seeming stopped due to lack of interest.. so im happy i get to discuss more about it.. i actually havent read it can u post a link
Here's the link to jjrvat's thread: http://elitetrader.com/vb/showthread.php?s=&threadid=113456&perpage=6&pagenumber=1
When you say %age, I am not 100% sure (pun intended) that we are talking about the same thing. Would you please provide a formula? Thanks in advance.
I show frequency distribution for HIGH - OPEN and OPEN - LOW. Is this the same as your LONG and SHORT counts? Trying to understand.
Very clear.. I can write an indicator to do that. But, I call High - Open "HiOp" and Open - Low "LoOp". LSD would be the Maximum of HiOp or MaxHiOp. SLD would be the Minimum of OpLo or MinOpLo. I assume we don't use 0 values. Now, I just have to understand the significance.
Uh oh.. maybe I don't understand. Current bar open is Open[0] Previous bar high is High[1] Previous bar low is Low[1] So is it High[1] - Open[0] and Open[0] - Low[1]??