Getting down and dirty is where the rubber meets the road ...

Discussion in 'Strategy Building' started by charts, Mar 31, 2010.

  1. Hi Jack, thank you for the corrections.

    This again caused "I got it!". Especially when I started to modify my fast fractal lines and to add the ftts. I thought: "Is that really that easy!?".

    But of course a few bars later things started to look a little bit trickier. Especially because now with the "new" information I looked at my previous lines with different eyes. Especially being reminded (or in this case get the confirmation again) that channels overlap (always) seems to make it easier to spot the ftts and sometimes identify which lines need to be drawn.

    But all of this takes energy which now results in a degradation of the concentration (or do you say "focus"). Therefore I will stop for today and tomorrow look at it again with fresh eyes.

    Thank you for your help.
     
    #161     Apr 17, 2010
  2. gucci

    gucci


    Jack why do you annotate the sixth ftt as building on increasing red volume and the seventh ftt on decreasing black?
     
    #162     Apr 17, 2010
  3. Here is a reference chart that shows three panes: annotated price on three nested fractals, volume and annotated volume pattern to match the price pattern.

    [​IMG]

    Volume is either dom or non dom as you build the pattern fractal by fractal. I use slope of the lines that go from Peaks to Troughs.

    This illustrates the difference between the OODA betting in an up down environment (See traderzones classic dum dum dum dum dum dum post where he points out his up/done syndrome of CW) from the MADA pattern combo of 3 price moves for 4 volume moves.

    This illustrates how minds are built one way of another. The critical thinking element is the condieration of dom and non dom volume moves.

    In terms of MLR or RTM thinking there is the issue of regression to the MLR mean or what precedes it, movement AWAY from the mean. Dominance is what moves it away and non dominace it what moves it towards. this is a volume measure that is simulated with price points usually (an indirect measure of regression using an altenate variable to the principal variable involved.)

    Pragmatically all of this for OODA tradrs is the source of the negative emotions proven by research to be associtated with OODA trading. the cure, so far, is professional theapy and setting a success standard far from the market's offer. this will prevail for the forseeable future, luckily. As a consequence, in Larry Harris, there is an established heirarchy of trader styles.

    MADA fits in under speculation and its sub classes that deal with parasitic things which include anticipation and technical analysis. This puts MADA as a subset in a place where binary logic applied in an information context of non probabilistic information theory. All of this related to the deductive thinking of the Scientific Method. All of PEP and its applications are designed to minimize risk while optimizing taking the market's offer. Consequently noise and anomalies are not present.

    OODA is often described s having a kindred relationship to poker. Poker is inductive in nature and involves risk taking to win or lose.
     
    #163     Apr 17, 2010
  4. In the above chart there is a fanning on the slow fractal level. give serious attention to the completing of the pattern for the slow fractal and how the trading fractal makes moves to do this completion process.

    Drill

    1. accomodate pattern completion during expansion by fanning and considering he non stationarity of the windows involved. All patterns complete and all patterns have coordinated 3 price moves and four volume moves. this is how markets work and there is an absence of noise and anomalies.
     
    #164     Apr 17, 2010

  5. Ok here you go. K200 5 minute chart fully annotated for April 16, 2010

    [​IMG]
     
    #165     Apr 17, 2010
  6. Here is the beginning point for carry over.

    Volume is not adjusted to the three levels of nested fractals.

    we can now state the status of the fast frctal the trading fracatl and the slow fractal.

    Give it a try.
     
    #166     Apr 17, 2010

  7. ahhh ok cool. I was fanning out right trendline of last upmove as price broke the uptrend around 1:35am est on decreasing volume. I had fanned out and continued the point 3 of uptrend.

    You are already into the point 3 down ( at 1:30 am est ) of the large container you added by annotating the final 7 bars of the morning EST ( or eve depending where you live ) as a return to r2R2b2R

    Thanks . . .
     
    #167     Apr 17, 2010
  8. polford

    polford

    For points 6-12 of the 'bar characteristics drill' and its extensions, you can adapt vorzo's tribute to mak Excel sheet.

    You can also use and adapt the attached tool to process the most recent OHLCV data of an instrument.
    If you want, see if you can extend the tool for the creation of the sets of internal matrices.


    Code:
    Crossing Range & Overlap w/ Pace
    MinTick = 0.05
    Pace Levels = 238, 1547, 2669, 3731, 5160, 8452
    
    # of Ticks
        1   2   3   4   5   6   7   8   9  10  11  12  14  16  20  24  28 
    Range
    E   0   0   0   4   6  15   9  25  17  21  16  11  16  15   3   2   1 
    F   0   1  14  40  66  68  57  31  16   9  11   3   4   0   0   0   0 
    M   0   5  42  73  87  50  33  19   8   2   1   0   0   0   0   0   0 
    S   0  18  84  99  71  39   8   1   0   0   0   0   0   0   0   0   0 
    D   1  51 134  97  29   8   0   0   0   0   0   0   0   0   0   0   0 
    V  17  73  57  10   2   0   0   0   0   0   0   0   0   0   0   0   0 
    
    Overlap
    E  25  31  30  20  16  15   8   7   3   3   2   0   0   1   0   0   0 
    F  42  78  63  58  35  23  12   7   1   1   0   0   0   0   0   0   0 
    M  33  69 103  55  38  11   6   3   1   1   0   0   0   0   0   0   0 
    S  34  96 108  52  24   4   2   0   0   0   0   0   0   0   0   0   0 
    D  49 116 116  33   6   0   0   0   0   0   0   0   0   0   0   0   0 
    V  35  84  35   4   1   0   0   0   0   0   0   0   0   0   0   0   0 
    
     
    #168     Apr 18, 2010
    Sprout likes this.
  9. Hi Jack,

    thank you for your reference. I will now try to reproduce on my own chart what you created. I will post "chunk" by chunk and highlight areas where I either have difficulties or questions.

    It already starts with the first move. While I can create three price moves I don't see that volume is doing four moves. What seems to be missing is a R2R from point 1 to pt 2.

    Please have a look.
     
    #169     Apr 18, 2010
  10. In the next move from pt1 to pt2 I see black volume falling so my gaussian line would be a black line down.

    On your chart you "squeezed" in between pt 1 and pt2 (if I see this correctly) a down red followed by an up black gaussian line. Maybe the firs red line was a mistake? If it was then question would be: Why did you annotate a B2B in this case but not at the beginning a R2R?
     
    #170     Apr 18, 2010