Market Forecasting - Fact or Fiction?

Discussion in 'Trading' started by vinstradamus, May 11, 2008.

  1. what do you do when your y scale changes throughout the day based on price action?
  2. Very Good Question.

    In order to apply the technique properly you first must adjust your charts side to side so that the Price Bars no longer get longer or shorter but stay the same length, then draw your angled lines.

    I use Esignal and there is a way to dock the charts there however im not sure about other Data Providers.

    In any event it’s usually easier for me to explain it live.

    What I can do when I get a chance is perhaps create a little video of my charts to explain it better.

    But it is a very good question as time goes by price bars and formations change size on one's charts but once you get the reference point correct then just look for the future turning points at the original lines of intersection reference point between the Swing Highs and Lows and the angled lines and take note of them.

    So for example, lets say you find the correct point of reference and draw your angles on an hourly chart, you then immediately look for the hours in the near future they point to and jot the times down so that when the price data expands or contracts you will already have the times to look for in the future.

    How will you know the correct point of reference?

    #1 The Chart Formation and Price Bars will no longer expand or contract while moving your chart side to side and

    #2 The results will be consistent; meaning I tried the technique 10 times and 8 or 9 times it accurately pointed to a future point that resulted in a market reversal, as an example.

    I am also working on the coming up with the formula's to do the same thing to confirm what is drawn is accurate. The equations shouldn’t be very difficult, I just haven’t had the time lately to work it out but I will.

    That should take the element of error out caused by the mechanical method.

    In the meanwhile it's simple enough to test in real time and I encourage you to practice testing it and drawing lines and paper trading it. If you have a Line by Angle Feature in your Trading Charts, that makes it even easier.

    Never take anything for granted, Test it, let it prove itself to you and then and only when you have confidence that it works, then you can decide if you want to use it while trading with real money or not.

    Predicting the Future is Easy, Trading in the Moment and Being able to execute and respond proactively (Notice I didn't say Reactively) is the main difference between those who succeed and those who don't.

    And Im sure you've heard you could give most people tommorow's newspaper today and they still would not profit.

    Thanks for asking.