Todays perfect trade. Maybe we will get more . . . maybe not. <img src=http://elitetrader.com/vb/attachment.php?s=&postid=2202770 width=800>
Proflogic, I believe you add the large arrows, which indicate entry and exit, manually. I think you previously said that they are derived from another chart with a faster volume bars, is this right? If so could you post this chart? If not what caused you to place them at those points? Is it color change in the ergodic histogram? Thanks.
No, the small arrows are computer generated and show where the Trading Oscillation labels first appeared on that particular chart. The large arrows show the general arrow of entry and exit. I'll post the entry chart anyway that shows the PF (Price Failure) oscillations and the multiple entries and exits that can be taken at those large arrow areas. Those exits marked are the first exit areas. Screen was too small to post second exits. My rationale is to first SEE the direction price is moving and then, through use of the histogram, SEE where the strength is agreeing with that direction at an extreme level. That gives me the highest probability of a move in that direction where the last previous top or bottom (depending on direction) is the target. If price breaks through that level or not the trade is still profitable either way. <img src=http://elitetrader.com/vb/attachment.php?s=&postid=2202863 width=800>
Hey Prof, My 343 is similar, but I don't have the histogram at this time. What gets me, is the early entries. On my chart, you can see the possible entires at 8:37 and 8:48 were early. Around 8:58 it was much better. Is there a better way to confirm those prime oscillations? Would using the 49 help to confirm? After each of the prime oscillations, I identify PF's, but then it keeps coming down. The ability to conclusively confirm the 8:58 prime oscillation as THE prime bottom is what I'm having trouble with.
The histogram will make a huge difference in eliminating the early entries. It will show you the difference between extreme levels and minor levels and keep you from entering at those minor levels. Stay away from the 49 because at that speed it will be too noisy. Simply add the histogram.