ProfLogic's Method

Discussion in 'Strategy Building' started by El Guapo, Nov 24, 2008.

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  1. 16807 Trade Areas for Today.
     
    #1091     Mar 18, 2009

  2. 1st - Correct (This is for those with a good amount of screen time watching price on this method. This is great when you are trying to enter a trade WITH the Trend. You are anticipating the Histogram Oscillation by doing this)

    2nd - Correct ( if that PF is immediately following a 343 ERG Oscillation in Prime or if the 343 ERG Oscillates in Prime and then followed by the PF sequence)

    3rd - see 2nd (I hope this clarifies)
     
    #1092     Mar 18, 2009
  3. Whisky

    Whisky

    It bears repeating that catching ONE of these 16807's a WEEK and properly riding it to completion is more than enough to be successful. The 2401 was in sync several times to climb on that wave up.

    There are usually more than one of those every week too.

    Just an ass with an opinion here, of course.

    JW
     
    #1093     Mar 18, 2009
  4. Usually 2 to 3 of those a week.

    These trades are for those that prefer golf to trading but still like the uncommon income.

    :D
     
    #1094     Mar 18, 2009
  5. I'm sure I must have overlooked a rule or by-law, but what allowed you to stay in the trade you took at 2:08 (approx.) through the hist oscillation that occurred at 2:17? Resulted in a major difference in points earned (approx. ~20 vs. ~10 if you exit at the first oscillation)...

    Thanks for posting those charts...br
     
    #1095     Mar 18, 2009
  6. Price is making a HH. You exit due to Oscillation PPF or Divergence/Convergence.
     
    #1096     Mar 18, 2009
  7. Ok, that explains it. I was wondering all day how you managed to ride moves for extended periods given the frequent oscillations that occur. Anyway, understood now that its only relevant with a PPF.


    However, one point I'm still missing is the divergence/convergence aspect. I reread the rules on 10 and searched the forums, but can't find what you are referring to with "divergence/convergence." I'm assuming its a histo oscillation on the trading chart, but what is it being considered in relation to?

    I can only find it referred to as a "divergent/convergent oscillation", but not quite sure what it is referring to.

    thanks in advance...

    thanks
     
    #1097     Mar 18, 2009
  8. One will find divergence/convergence between the oscillator (in our case, the ergodic) and price. Two examples of divergence have been marked in the attachment. Most typical is price makes a HH, while the oscillator makes a LH. The other divergence marked is a case where the osc makes a lower low as price makes a HL (not the best example,but just quickly trying to give you an idea of one). Convergence is as it says, and can easily be seen where price makes a LL, while the osc prints a HL. Or, also in a downtrend, price makes a LH as the osc makes a HH. We can encounter d/c when comparing price to Prime Trending Oscillations (the erg line on our trade decision charts) and also on the histograms in relation to Prime Trading Oscillations on the same. They will also appear on our strength and entry charts. None of these occcurrences are considered a reason for entry, but rather as additional confirmation of the setup we are currently anticipating. Or, pertaining to the recent discussion, a reason for exiting a trade, since one can expect a change of price direction at these areas. Hope this is clear enough ...

    Edit: Must be tired here, as I failed to mark the most obvious area. Strike a line from the Breach HH 795.25 up to the high of day 800.50. Do the same across the peaks of the histograms corresponding to those areas. And now I see another even better (lol) ... check out the two Prime Trending Osc of the erg line at these two price areas. No doubt I missed that in realtime - we have a lot to keep in mind as we learn.
     
    #1098     Mar 18, 2009
  9. Here's the better example I was referring to in my previous edit comment ... I'm sure you realize these can take a while to develop, and only serve to provide a larger perspective wrt subsequent price direction.
     
    #1099     Mar 18, 2009
  10. Sushi or cut-bait? nevermind...


    Mephisto - thanks for the response...So, referring back to the 2401 that prof posted and the exit he took at 14:23, I am guessing the divergence then was that the second consecutive prime histo oscillation was a LH (not the price, but the histo level), and therefore that was the cause for the exit.

    This seems the most subjective, or if not subjective most nuanced part of the approach that I've encountered to date. I may have to write the c/d possibilities down on flash cards so that I may memorize them and be ready in real time :)

    I see how it is critical though -- i was already noting a serious deficiency in using simple trading chart histo oscillations as exit signals.

    I would like to code up these entry criteria so that I could backtest various exit strategies...would be interesting to test a few different approaches.

    Thanks for providing the detailed explanation.

    br
     
    #1100     Mar 19, 2009
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