My view is that the markets closely relate to their participants. Thus, I could build a system of the market's operation. So I did several of these. Now, looking back I conclude several things. Prediction is not a necessity for taking the full offer of the markets. There is no need to apply statistics to the markets to take the full offer of the market. Market participation rules and the rights of participants are all that are needed to create markets. Market behavior comes from this. Iterative refinement of methods is complete when noise, flaws and anomalies are not longer a part of the data stream processing. The thread is about patterns in random walks. If a random walk in a market rules of operation setting is done; then there will be patterns. The reason and basis of my certain conclusion is the simple fact that the variables of markets are granular. I have been around. In fact, I am recognized in academics, research, applied science and engineering. My most exciting advanced learning experience was in theoretical physics. I was fortunate enough to have P. Gabrial Bergman in front of the white board for several top of the line classes. He used Russian texts mostly.(the famous L's)
market buyers move the market up until it is too pricey, market sellers move the market down until they think its too cheap , these turns create temporary value areas ,this happens repeatedly, this makes it repetitive ,this action could be sliced and diced several ways , while your back is turned doing the research to disprove it, it will repeat this behavior. A rose is rose by any other name
That's all nice but this isn't academia, research, applied science or engineering. That's 2 doors down. This is where the rubber meets the road.
LOL As a concequence, I am a trader (56 years). On ES open tomorrow, I will enter short. See carryover for substantive context.
There are patterns in random data that's created within market parameters. It's the exact same patterns as real markets. This one of the reasons TA is logically flawed. surf
attached is the page 5 of the log which has carryove notes. I stay in the market all the time for RTH's so the open is always a trade. Edit: Ooops, the sandwich I created has bologna in between.
Is he following your advice? Do you have something simpler to show. Your charts look too complicated.