btw, I am not going to be posting as often in the future, it's that I am really excited about the material. I don't intend to bother the magnificent work in process.
Gaussians permit you to understand the context in which Price operates - the 'size' of the Forest. If, for example, you find yourself viewing a Price retrace of an Up Channel, one would expect decreasing red volume to occur over the entire traverse. Knowing the size of the Forest allows you to monitor for continuation and change while experiencing stress free trading because you know where you are, and more importantly, you know what comes next. Just as we place importance in drawing channels correctly, so too, must one monitor the Gaussian formations within that same channel context. Too often, traders choose a finer resolution with which to monitor Gaussian formations without even realizing it. I'll try to include some notations on Gaussians in my ES Chart tomorrow. Perhaps, Jack can post his thoughts on Gaussians as well. -Spydertrader
This is an almost ideal volume Gaussian example that occurred 2/27/07 at 2 pm CST: <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1386518>
Hi optioncoach approaching this method without a clear mind (say from a cold or something) is not recommended and you will not do the material justice. A lot of people have given freely to educate here and it deserves more than a cursory glance from your bed. I'm sure you did not mean to be insulting but I found this comment of yours a bit arrogant. Hopefully you will take this comment the right way. By all means be enthusiastic but remember a lot of people contributing here have done the work.
I have and updated one for IB/IQFeed/Esignal. It contains one update which is a noise filtering mechanism. I just need to set aside an hour or two to idiot proof it. I prefer to do things in the open thread since I can many of the same type of questions via PM... Regards, MAK
Very nice... NOTE the dominants here and how the second volume peak is lower than the first volume peak. It is definitely a good idea to really iron down gaussians. However, keep in mind that if you don't get it, you won't be missing much.
You guys really overreact to posts and are quite sensitive. I am not one of those guys you spend hours arguing with in the other posts about this method or that method. The intent of my post was pretty clear. With the volume of material that exists and lack of free time I was joking that being laid up in bed would be a perfect opportunity to catch up on all this reading. Please.....save the mild rebukes for those attacking you in that other thread, the intent of my post was pretty clear. As someone with a 2 year thread with enourmous amount of postings myself describing my trading approach in detail I am well aware of the time and generousity involved.
The 2m-YM leading the 5m-ES, both in price and volume Gaussians, example of 2/27/07 1:30 - 2:30 pm CST: <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1386584>
The concept is straightforward, and ideal examples are easy. But in the midst of the action, when channels are being established and with intrabar shifts, spikes, stalls, etc., it's much more difficult. I'm finding I often need to enter a sort of P-V feedback loop, using one as context for the other and vice versa, until I arrive at the difference that makes a difference, and then the channels snap into focus. Mak, I see that you're being encouraging, but if you miss gaussians, aren't you pretty much missing the context for interpreting volume, and therefore price?