I am getting a different dynamic with applying the equation I wrote, but applying the equation is necessary in order to simplify reading the Q and Sym distance charts. Already looking forward to tomorrow. Remember whatever you do always protect yourself in these markets!
This chart is true to form with one and only one caveat. At your peaks and valleys it's N+2. For example 0700 is a valley add +2 to get the actual turning point Low of 0800. 0430 was a peak add +2 and look at 0530 you have your High. This continues for the entire chart. This makes it easy to determine turning points, also it lets you see trends, the best of both worlds for a trader.
Crude Oil 7/22/16. Not hard to see why they sold it this morning. Same application as provided in the ES Chart.
The 30 minute data in the provided ES chart says you would be at price Highs during the 1100 30 minute price bar. They crushed Crude but look at the chart, it was indicated that 0900 would be a price High to a 1100 price Low. Modeling non-linear data is not easy but you can remove the complexities of it and create a nice linear graph to follow the market.
On Monday before the intraday session begins I will indicate where the Price Highs and Lows will be for the ES and Crude. Did you like that 1410 bar on Crude? Price action folks and trend traders kept pushing it down but it's time was way past due to continue down and so that is what happens.
Based on the ES and Crude Charts, I believe both will be up on Monday. I decided not to attempt to go into detail and describe all the turns because I realize it's not necessary. If I know in advance that a market is going to be up for the day I should be able to profit from it. The charts are inverted. The red lines are 1 Standard Deviation Lines and if data points are above or below the Standard Deviation lines, then the data points will be indicating a price inversion, in other words they will be inverted too.
Interdim, I do appreciate what you are doing, but there are somethings you have described that make this thread so hard to follow. The crude call was a good one, I was also in that trade for other reasons, ie. the baker hughes rig count number came out and was extremely bearish, however it only caused price to move lower by about 12 cents. That was my indication that crude was done selling, and I got long very close to where you made your call. So, back to my original sentence. You mentioned the charts are inverted - I take this to mean, when they move higher it indicates price will move lower. Then you go on to mention the 1SD lines, and if the data points move beyond them, it indicates a further inversion. I have no idea what to make of that.
Thank you Trackstar. Yes you are correct in saying when the data point line on the chart, (not the polynomial line) is moving higher, price will be moving lower with the opposite being true, with the data point line moving lower, prices will be moving higher. When the data point line crosses the Red Line (1 Standard Deviation) the data point line becomes true to form, then the data point line below the lower Red Line mean price lows and if the data point line is above the higher Red Line means actual price highs. Hope this clears this up for you and I am trying to simplify how to read the charts. I can do this for any market or time frame. If you would like for me to send you a chart of other markets or time frames let me know. The more you see this the easier it becomes.
What I just described to Trackstar just happened in the Crude Oil market during 2130 on the chart and we began moving down.