Envelopes, Waves, and Cycles

Discussion in 'Technical Analysis' started by expiated, Jan 30, 2020.

  1. expiated

    expiated

    Wave-Envelope-Cycle (WEC) Strategy Guidelines
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    #21     Feb 5, 2020
  2. expiated

    expiated

    Given that, unless I misunderstood something, Hurst and Millard are no longer with us, and nothing I've seen from Hurst, Millard or Grafton has convinced me that actually buying their books or taking several months to work through Hurst's Cycles Course is likely to enable me to get better results than I'm already getting now, my exploration into this topic has come to a close.
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    #22     Feb 6, 2020
  3. expiated

    expiated

    I just wrote that my exploration into this topic had come to a close, however, I never took a closer look at what the other two traders who said they use mutiple envelopes were doing...

    In comparing the strategy ataata (from a different forum) uses when implementing multi-envelope one-minute chart trading (the top chart below), I found it interesting that the parameters he uses match right up with the ones I settled on. However, it looks to me like the way in which he applies them results in much fewer trade opportunities (only two here) than I think I am able to take advantage of...

    Copared to ataata.png

    (My configuration is on the bottom.)
     
    Last edited: Feb 8, 2020
    #23     Feb 8, 2020
  4. expiated

    expiated

    Parisboy and I are of a slightly different mind in that he uses the same three envelope settings for all time frames (though I noticed he added a fourth one for higher time frame charts) whereas I believe in adjusting the parameters when switching from one time frame to another. Nonetheless, I found that when comparing a one-hour chart setup using his parameters (the one on the top) with my own, they did indeed look rather similar...

    Compared to Parisboy.png

    A couple of the main differences I saw were that I would have added an outside blue envelop to his configuration to extend the corresponding price range for volatile markets, and on my own charts, I added two additional envelopes inside the blue one to track even shorter waves/cycles.

    Again, I think my approach would result in being able to take advantage of many additional trade opportunities. (The green envelopes in this post are equivalent to the black envelopes in Post #21.)
     
    Last edited: Feb 8, 2020
    #24     Feb 8, 2020
  5. expiated

    expiated

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    #25     Mar 14, 2020
  6. Turveyd

    Turveyd

    Moved away from envelopes doing much better.

    Just trading of a 12sma and BB 8sma 2.5, works for any TF aswell.
     
    #26     Mar 14, 2020
    expiated likes this.
  7. expiated

    expiated

    I'm glad to hear that's working out for you. I don't imagine I will ever move away from using (dynamic, adaptive, price range) envelopes in that they are the primary aspect of my approach responsible for the effectiveness of my system, along with the use of baselines...

    ScreenHunter_7747 Mar. 14 08.57.jpg

    I personally do much better with them than without them. Also, the use of the same parameters in multiple time frames is a practice that conflicts with the rationale underpinning my approach, but like Seba Smith wrote, "There's more than one way to skin a cat."
     
    Last edited: Mar 14, 2020
    #27     Mar 14, 2020
    studentofthemarkets likes this.
  8. Turveyd

    Turveyd

    Felt the same as you for 10years, Envelope X with with Y works for a while then stops, always chasing the next setup or 20+ of them and all gets confused as hell.

    Bollinger Bands, only need 1 as it adjusts to match volatility, i switched to and away a few times before finally starting trusting and finding a setup that works for me ( BB 8sma 2.5 Dev, with a 12 sma )
     
    #28     Mar 14, 2020
  9. expiated

    expiated

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    Last edited: Mar 14, 2020
    #29     Mar 14, 2020
  10. expiated

    expiated

    I'll have to see if this turns out to be the case for me given that I use adaptive price range envelopes (in addition to standard ones) and they must always be confirmed by bona fide baselines. Nonetheless, after ten years of successful trading, I should be set either way.
     
    Last edited: Mar 14, 2020
    #30     Mar 14, 2020