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Trading Logic and Market Constants

  • #61
  • Jul 17, 2016 3:47am Jul 17, 2016 3:47am
Quoting trickshady
I've only recently finished reading all of CP's posts and threads. My whole perspective about the market has changed but I'm not quite there yet. I still have a long way to go but I think I am finally moving on the right track. I'll try to explain time the way I see it. Let's take the 1min chart for example. Every minute a new candle will form no matter what. If there were no trades in 4 minutes, 4 candles will still form. They will just look like dashes with OHLC = the same number. Things on the tick chart would look different. There will be no...

Has nothing to do with time. Price trends up or down from reference price(s). Time can be better served as an exit/management tool. Where is price based on the prior day/week open? That's prevailing trend until it's not. The prevailing trend can be self defined. Just respect it.
Solutions ONLY!!!
  • #62
  • Jul 17, 2016 4:38am Jul 17, 2016 4:38am
Are you a programmer?

Quoting Rparm
Good afternoon Ladies and Gentlemen, Below I will share some unique insight regarding the Markets. First off for those of you wondering where I was these past 2 months I was tied up with system development and research, however I am back to make a contribution. This is a long over due thread, I appreciate the information that the Users of FF have provided over the past few years. Whether information is gold, or fool's gold: information of any kind gives the participant the opportunity to improve him/herself. Golden information points us in the right...
  • #63
  • Jul 17, 2016 5:15am Jul 17, 2016 5:15am
You say

- Past price does not influence current Market Moves regardless of what happened in the past: Example, If countless massive Sell Orders suddenly execute... does it matter if the price they executed at had one hundred previous Support Bounces?? The simple answer: No
- New Information flowing into the market causes speculation, which in turn creates Order execution and finally the movement of Price. A line Drawn on your chart, or oversold indication of the RSI will never ever cause Price to move.


And it is false, i think

Look at this chart

Screen Shot 2016-07-17 at 03.45.02.png

Look at the 2 rectangles, the first rectangle starting from the left, you probably see that here are two candles like touching rectangle and the volume is growing, going up

Now see at this photo, you see a new rectangle, probably

Screen Shot 2016-07-17 at 03.56.12.png

Now watch at Graphic 1M
Screen Shot 2016-07-17 at 03.57.47.png

Now see this photo

Screen Shot 2016-07-17 at 04.04.33.png

The volume accumulated in the rectangle

You see a Grey circle with 2 candlestick with low volume, this probably will cause a big Candle like in the green circle but his volume is grow much compared to another two bars that means will be a regression, like in the two candles of the purple chart, in the last circle grey you see that the candle was up but in the same candle go down, look at the last candle from purple circle now the next candle go up but his volume is higher compared to the last candle then go down, and the market continuously goes down because of the volume accumulated in the another graphic 5M

Look at this photo

Screen Shot 2016-07-17 at 04.12.51.png

So you are incorrect

Quoting Rparm
Good afternoon Ladies and Gentlemen, Below I will share some unique insight regarding the Markets. First off for those of you wondering where I was these past 2 months I was tied up with system development and research, however I am back to make a contribution. This is a long over due thread, I appreciate the information that the Users of FF have provided over the past few years. Whether information is gold, or fool's gold: information of any kind gives the participant the opportunity to improve him/herself. Golden information points us in the right...
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  • #64
  • Jul 17, 2016 5:43am Jul 17, 2016 5:43am
"Dude, your account doesn't show it."

that's not matter nothing
Quoting CrucialPoint
Denial: The Broken Heart {quote} Whenever you say a statement, every individual has their own interpretation of it... no matter how objective you try to be. {image} I still remember that day when a close friend of mine had broken up with his girl. I'm pretty sure we all have been there so everyone will be able to relate to this story. I will add some crucial points so you can get a different perspective and be shown the light. Friend: "I don't know what went wrong, we always have a good time." CP: .... (silent) Friend: "I was good to her...
  • #65
  • Jul 17, 2016 11:03am Jul 17, 2016 11:03am
How does one do research in trading to come up with these abstract views and finding truth? Do you read research papers, observe the charts, use statistical analysis with stata, mathlab, excel? Do you expand to read about other subjects like math, stat, economics, physics and find the resemblence in the markets? When I hear people say "do your research" that's the most vague thing one can say. We all know how stat, physics, chemistry, biology, economics, finance...research is done. But trading is the one subject you will never get help and never get any valuable information on how to do it right. You might be doing some research and be totally wrong and have no idea about it. And how do you know that what you have found is actually true?
  • #66
  • Jul 17, 2016 11:11am Jul 17, 2016 11:11am
Quoting trickshady
How does one do research in trading to come up with these abstract views and finding truth?. And how do you know that what you have found is actually true?
One simply enters the arena, is beaten to a pulp and told the opposite of what is true over and over like a brainwash until one is so numb one has a choice; To do it all again and pay more than what is given back. Or run away and do what feels more right. It's only when one feels more right doing the "wrong" thing that the eyes just begin to open and one is now a pup.

And typically that's if one is lucky enough to be guided by a Wolf.

Truth is like a lie... it hurts for longer than it's real, but at the same time blesses you with the freedom of truth. That's how you know

Inserted Video
Time hides Nothing
  • #67
  • Jul 17, 2016 12:28pm Jul 17, 2016 12:28pm
Quoting rocky
{quote} {image}
How do you get this FootPrint?
  • #68
  • Jul 17, 2016 5:00pm Jul 17, 2016 5:00pm
Quoting trickshady
How does one do research in trading to come up with these abstract views and finding truth? Do you read research papers, observe the charts, use statistical analysis with stata, mathlab, excel? Do you expand to read about other subjects like math, stat, economics, physics and find the resemblence in the markets? When I hear people say "do your research" that's the most vague thing one can say. We all know how stat, physics, chemistry, biology, economics, finance...research is done. But trading is the one subject you will never get help and never...
This is what everybody has had to face with; when I've found CP's threads i felt there were a lot of clues within his words, and so they are. I've been reading them around 10 times and each time i found something new; I did not find the answer in his threads, I got to go far beyond but they led me on the right path.
However, Cp does practice good trading eventhough he does not apply all that "hidden" knowledge (I wrote "hidden" between marks because is not hidden at all) and I have to confess I was deluded of that: I thought it was a sin having all that knowledge and do not put it in practice, so my research went far beyond; but I think he could not trade so well without that knowledge, so at the end he is applying it his way.
You need to open your mind to the unconceivable; I remember a great sentence from Steve Jobs: "think different, stay fool, stay hungry".
Most always when you look for the keys of your car, you will find them right where you wouldn't have thought they could be.
  • #69
  • Jul 18, 2016 1:58pm Jul 18, 2016 1:58pm
When you look at charts of different times, it's the same result if you were watching on tick charts, but in a certain amount of candles, so the time if it matters, is simple, look at the accumulation of supply and demand and based on such accumulation you can deduct how is going to go down or up in a given time

If you make an investment, sometimes you think how long you'll leave open that operation



Quoting trickshady
I know that time does not affect price but all we get in the retail world is candles. So we just gotta learn to use them. Sure we also get tick charts but I have no idea how to use them effectively. Perhaps you can give us some tips on that. Here is my view on timeframes and price as an analogy. The weekly - daily TFs are seen as a mountain. When you get to the 4hr - 1hr chart, you see that the mountain is composed of rocks. Zoom in to the 5min - 1min chart and you see the patterns rocks have under microscope. Get down to the tick chart and you...
  • #70
  • Jul 18, 2016 4:31pm Jul 18, 2016 4:31pm
when you look at tick charts, if price does not move you do have no ticks; when you look at time scaled charts you have a new candle as time goes by, eventhough price did not move: i.e. on H1 chart you have a new candle each new hour independently from price motion.
Understanding what time is, is not that easy because for occidental education time is just a line that goes from A to B, from past to future through out present: there is nothing more far than that from the truth.
  • #71
  • Jul 19, 2016 1:29am Jul 19, 2016 1:29am
I'm just trying to keep things simple, sometimes it is the smart thing, I guess people look at more sophisticated answers,

If there are a lot of accumulation volume in a short time, then it is very likely to be a lot of price volatility and cause a return in the price,
If you turn the graphs in the graph of 1 minute and you observe a movement of low volume and then notice that there is a new candle with a high volume in the price, then that sailing could be back to its original position that its volume is very large in a very short period of time compared to the other candles with low volume


If the candle, where is the Grey circle, is a candle with little volume like candles of purple circle, then the price would continue going up, forming a lot of candles, probably going to the price of that big volume candle

Screen Shot 2016-07-18 at 23.28.21.png

Here in the White line is a candle with high volume but continue to rise due to accumulated volume in other chart of time, like in the red line, i think

Screen Shot 2016-07-19 at 00.15.02.png

Based on time technically

If you want a correct answer of exactly how it works the time, then I will have to ask a scientist, I thought if the next year i could travel to the USA to ask a scientist, about time in a graph,
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  • #72
  • Jul 19, 2016 3:29am Jul 19, 2016 3:29am
Simple doesn't mean easy; volume is not related to time; big candles do not equal necessarily to high volumes; do not confuse volume with volatility; what time really is has been demonstrated by Einstein 60 years ago and there is no need to travel to an american scientist to get an explanation, just google it and spend part of your time to study.
I'm wondering how is possible to simplify something that we do not even know.....
  • #73
  • Jul 19, 2016 3:36am Jul 19, 2016 3:36am
If I go with a scientist in specific , He or she could explain to me in a detailed way , better than the internet, probably

On the Internet you can find very silly things that not working, i think
  • #74
  • Jul 19, 2016 4:05am Jul 19, 2016 4:05am
On web you can find everything, bullshits and diamonds; it is up to each one to recognize good things between trash.
There are also more traditional tools called books but they require to be read....LOL!

I think the biggest issue is that people do not want to use their mind, do not want to spend their time to think and reason: they only seek for results, immediate results and they end up with no results.
There is nothing that difficult in trading, and I wold say also in life, every normal person could know and understand if only wanted to make the effort to use its mind.
  • #75
  • Jul 19, 2016 4:15am Jul 19, 2016 4:15am
Your comment is like gold, it must be read

I knew it


Quoting strongtrader
On web you can find everything, bullshits and diamonds; it is up to each one to recognize good things between trash. There are also more traditional tools called books but they require to be read....LOL! I think the biggest issue is that people do not want to use their mind, do not want to spend their time to think and reason: they only seek for results, immediate results and they end up with no results. There is nothing that difficult in trading, and I wold say also in life, every normal person could know and understand if only wanted to make the...
  • #76
  • Jul 19, 2016 5:17am Jul 19, 2016 5:17am
Here is a quote that, unfortunately, for most of the people will mean nothing, but for those few that are willing to shake their neurons will be a true diamond:

Look deep into nature, and then you will understand everything better. Albert Einstein
  • #77
  • Jul 19, 2016 7:11am Jul 19, 2016 7:11am
Quoting mzvega
...EMH overlooks the existence of other participant TF's It is the supply & demand of LTF traders which drive the direction of the market In this example I will use an equal balance of both buyers & sellers for simplicity. I use an equal balance for simplicity of my example, but that is not always the case. Most times the balance of buyers & sellers are unequal. Only traders holding positions overnight or longer create the demand that moves markets. If the 99 & 1 were day traders and exited before the close they would have created volume in the...
Thank you for explaining LTF role, supply and demand.
  • #78
  • Jul 23, 2016 8:42pm Jul 23, 2016 8:42pm
If you want to understand some of the things that i do, probably you need to learn this post, i think.

http://penguintraders.com/2014/12/11...current-zones/

But mine is probably much more advanced and more likely Complex Average Mind not understand ....

I already knew probably something similar to the content of the website , I do not remember, It's not important
  • #79
  • Edited 3:07am Jul 25, 2016 2:28am | Edited 3:07am
Hi
I just wanna draw attention on a EUR/USD kind of constant.

It's a structural constant, shaped as a grid like.
It's about a certain horizontal levels working pretty good as S/R levels.
My guess is on a residual print of the automatic systems of those big players who shakes the market.
I think that structure is a strong constant.

And it goes like this:
- 1.1100 can be a landmark; but there are more round up numbers to take them as a start (as 1.1400);
- the "grid" spread/s horizontally as multiple and submultiple of 30 points (120, 60, 30, 15, 7.5) but necessary starting at a landmark figure as 1.1100;

Here's some examples, but check the E/U charts for yourself and tell me what do you think
And do you think that we can pull out some money from that?
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  • #80
  • Aug 11, 2016 1:15am Aug 11, 2016 1:15am
Hello all, Today I will be sharing a small bit about how I personally develop Trading Systems. The method below was developed over a few years using experience (trial and error), I find that it is very useful in determining the "true value" of any observation in the markets, also by documenting the results they can come into use in the future, regardless if they are viable/not viable at the moment.

The Method is quite critical I find myself asking the questions "Why this... Why that... What else..." over and over again. By being my own biggest critic I can find flaws in Observations/Methods and improve or scrap them as needed. But I always document the end results and how I got to the results for future use.

Below is my intellectual property, not for sale, only for sharing freely. If you would like me to continue posting my thought process, and research: Do Not post this picture anywhere without linking back to here... Once again this is based off of my experience, my perspective... this may not make sense to everyone, and I don't mean to offend anyone who disagree's with what I share. It works for me and I am quite happy with it .

Of course, if at any point in the picture there is a dead end always take a few steps back using logical thinking. Also The Picture is a bit large it might be worth it to download or open in a new window and Zoom as needed.

Also do note this is quite general and lacking certain details for sake of being concise, in reality there would be many more steps, each step would take any where from Days, Weeks, Months, and sometimes Years to accurately test. Trading profitably is not easy. Hard work, patience, work ethic, and faith in oneself are crucial to success. Repeated failures and accurate observations will pave the way to success don't get disheartened when what you think should have worked didn't. If you don't believe in yourself, and think I'm being soft by saying "believe in yourself" just remember that Placebo's can positively impact a person based off of the fact that the individual believes in the getting better, the mind plays a key roles in one's success, happiness, and overall well being. If you work with a negative attitude you will never have positive results.

Lots of love for you folks,
Rparm

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A Positive Mind, and Positive Spirit lead to True Happiness
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