ProfLogic's Method

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

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  1. Riva

    Riva

    Three decent shorts in the EURUSD today...
     
    #1121     Mar 27, 2009
  2. ProfLogic, I want to lay out the structure first before getting too deep into the rules. This is to confirm what I think I know as the base for the rest.

    All charts are CVB (Constant Volume Bars) to a power of 7 (the base).
    A triplet chart set is used with consecutive exponents :
    • Entry Chart = 7** N Volume
    • Trading Chart = 7 ** (N+1)
    • Strength Chart = 7 ** (N+2)

    There are two lower indicators: a customized Ergodic signal line (adapted from Blau's TSI) and an Ergodic Histgram. The parameters (on all charts) are
    Fast = 49, Slow = 49, Signal Length = 147, and Price Close
    (vs Median, etc). I'll get deeper into this formula later.

    Some definitions :
    Oscillation = a change in slope direction (+/-) == on ERG & Histogram = change in color; on Price = Peak or Trough

    PPF = Physical Price Failure = Oscillation Failing to make a HH or LL = Lower Peak or Higher Trough

    Breach = Strong Breach = Price Oscillation making a HH or LL = Higher Peak or Lower Trough

    Breach PPF = Breach Physical Price Failure = Breach with price change of 6 tics or less

    Match PPF = Price Oscillation with the same High/Low as the previous oscillation
    Weak PPF = Match PPF

    Since all PPF & Breach variations are price oscillations (Peak/Troughs) then then same algorithm can be used to identify all, and then distinguish by comparing the current oscillation price to the previous; i.e., Abs(New – Previous) = Delta
    • Delta > 6 == Breach
    • 0 < Delta &#8804; 6 == Breach PPF
    • Delta = 0 == Match PPF
    • Delta < 0 == PPF
    I realize that some folks might consider this obvious to some, but I would prefer to avoid any invalid assumptions. ProfLogic, if you could just let me know please – is this exact or what needs re-writing?

    TIA !
     
    #1122     Mar 27, 2009
  3. Alright, I seem to have messed this up already. PPFs & Breaches on chart (N) are not based on chart (N)'s Price oscillations, by definition (below), they are based on the ERG signal line oscillations of the faster (N-1) chart. They happen, mathematically, to align with the Price peaks and troughs.

    From an earlier post
    Is my interpretation correct?
     
    #1123     Mar 27, 2009
  4. Whisky

    Whisky

    You are correct. Oscillations of the N-1 ERG in Prime (+/-10) are Prime PPFs the other oscillations of the N-1 ERG are secondary PPFs oscillations.

    JW
     
    #1124     Mar 27, 2009
  5. Thanks Whiskey !
     
    #1125     Mar 27, 2009
  6. Did I hear that there was AmiBroker code available? if so, please PM me. I'd like to get a copy for study.

    Whiskey, FYI, I snagged your Ergodic for Ninjatrader as well as palinuro's. Now I am in process of crawling through them to assist my learning curve.

    Thanks, everyone!
     
    #1126     Mar 27, 2009
  7. Whisky

    Whisky

    Remember to change the histo multiplier from 50 to 72 to more closely resemble Prof's charts.

    JW
     
    #1127     Mar 27, 2009
  8. hi Guys,

    i am new to the forum. just finish reading the forum and got some question hopefully you guys can help me with it.

    1.if i found the erg in 2401 chart forming higher high, does it mean the market is going up and i start to look for long signal in my 343 chart?

    2.divergence must occur above +10/-10 to be significant?

    3.does any one has proflogic software that can show all the arrow and entry and exit signal?can email me a copy?

    thanks so much.
     
    #1128     Mar 28, 2009
  9. Reread the rules a few times and it will make more sense to you.
     
    #1129     Mar 29, 2009
  10. The rules refer to an Entry/Exit (7**N), Trading (7**N+1) & Strength (7**N+2) chart. Some posts refer to the Trending chart.

    (1) So is the Trending chart the same fractal as the Strength chart ?

    It seems that only the histogram is used on the N+2 chart, to indicate strength.

    (2) Is anything else used on this N+2 chart?

    Thanks!!
     
    #1130     Mar 29, 2009
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