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Attachments: Analysis and Trading based on Envelopes, Waves, Cycles
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Analysis and Trading based on Envelopes, Waves, Cycles

  • #41
  • Oct 26, 2017 6:19am Oct 26, 2017 6:19am
Quoting parisboy
{quote} which numbers ? the parameters of the Envelopes ? it depends of the financial instrument you trade for a fourth Envelope - mostly on Longer Term - use a Envelope 1536 Time Unit (6 years on a daily basis)
I am trying to understand here if there is an arithmetic progression between the numbers
32
128
256
1536
or if there is some other significance
  • #42
  • Oct 26, 2017 6:27am Oct 26, 2017 6:27am
Quoting onojiwizard
{quote} I am trying to understand here if there is an arithmetic progression between the numbers 32 128 256 1536 or if there is some other significance
the methodology I use has some "theoretical" basis

obviously I should have used the 64 time unit Envelope instead of the 32 TU but at the time the Envelope 32 seems better !

"better" meaning that the upper and lower limits of the Envelope 32 TU are in average more effective - "effective" meaning closer from the price movement and generating more "touching" or "crossing" of the other Envelopes - generating more contact points

anyway all "numbers" - here periods , are harmonics - that the doubling / halving system - fractalization and autosimilarity
  • #43
  • Oct 26, 2017 6:33am Oct 26, 2017 6:33am
Quoting parisboy
{quote} the methodology I use has some "theoretical" basis obviously I should have used the 64 time unit Envelope instead of the 32 TU but at the time the Envelope 32 seems better ! "better" meaning that the upper and lower limits of the Envelope 32 TU are in average more effective - "effective" meaning closer from the price movement and generating more "touching" or "crossing" of the other Envelopes - generating more contact points anyway all "numbers" - here periods , are harmonics - that the doubling / halving system - fractalization and autosimilarity...
ok
say for instance i use moving averages
60
120
240
480
on m1, how then should i pick range from which to calculate the vibration their sensitive to.
Does the average daily range of the pair, make it or is there something else

I like objectivity as a Physicist, subjectivity introduces noise in my view.

Thanks
Onoji
  • #44
  • Oct 26, 2017 6:36am Oct 26, 2017 6:36am
Quoting onojiwizard
{quote} I am trying to understand here if there is an arithmetic progression between the numbers 32 128 256 1536 or if there is some other significance
the "system" was initially developed on an End of Day Basis using the Gann concept of Price and Time "squaring" and using the Fibonacci approximation of the division by 8

Hence your time factor range has to be divisible by 8 : 8, 16, 32, 64, 128, 256, etc
  • #45
  • Oct 26, 2017 6:39am Oct 26, 2017 6:39am
Quoting onojiwizard
{quote} ok say for instance i use moving averages 60 120 240 480 on m1, how then should i pick range from which to calculate the vibration their sensitive to. Does the average daily range of the pair, make it or is there something else I like objectivity as a Physicist, subjectivity introduces noise in my view. Thanks Onoji
Then just do it ! practice !

compare both set of time parameters

show us your charts - we will discuss them
  • #46
  • Oct 26, 2017 6:42am Oct 26, 2017 6:42am
Quoting parisboy
{quote} the "system" was initially developed on an End of Day Basis using the Gann concept of Price and Time "squaring" and using the Fibonacci approximation of the division by 8 Hence you time have to be divisible by 8 : 8, 16, 32, 64, 128, 256, etc
Now it makes a lot of sense, thanks man
  • #47
  • Oct 26, 2017 6:56am Oct 26, 2017 6:56am
Let assume we are on a 1 mn chart - in fact it is an End of Day chart - but that is the same thing one point on the screen = one time unit

the parameters for the Envelopes of the first chart are 32 / 128 / 256 / 1536

the parameters for the Envelopes of the second chart are 60 / 120 / 240 / 1440
Attached Image(s) (click to enlarge)
Click to Enlarge Name: ^AORD_csv_daily26_10_2017.jpg Size: 203 KB
Click to Enlarge Name: ^AORD_csv_daily26_10_2017 2.jpg Size: 203 KB
  • #48
  • Oct 26, 2017 7:49am Oct 26, 2017 7:49am
DOUBLING THE ENVELOPES PARAMETERS

October 24th 2016, trading the french CAC 40 with the parameters 1 minute / 1Day

Parameters are : 15,625, 7,8125, 3,90625

Here is a very good example of HOW to use the system based on the Octave (Vibration) !

due to a sharp jump of the price in a few seconds, you just have to DOUBLE the amplitude of the Enveloppes

Now the new parameters are 31,25, 15,625, 7,8125

As soon as you have determined the correct amplitude of the "vibration" to which the financial support you trade is the most sensitive, to master the changes , you just have to DOUBLE or HALVE your parameters.

If Price moves up decisively ABOVE the upper limit of the Enveloppe 256 Time Units (brown), the probability is very high that this uptrend will stop one former parameter above the previous one.

Note that as you goes from one status to another whose amplitude volatility is DOUBLE (or HALF), you have a PHASE OF TRANSITION.

In this case it is useful to keep active 2 different graphs with 2 different amplitude of the Enveloppes.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: DOUBLING 1.png Size: 127 KB
Click to Enlarge Name: DOUBLING 2.png Size: 131 KB
  • #49
  • Oct 26, 2017 7:54am Oct 26, 2017 7:54am
Quoting parisboy
Let assume we are on a 1 mn chart - in fact it is an End of Day chart - but that is the same thing one point on the screen = one time unit the parameters for the Envelopes of the first chart are 32 / 128 / 256 / 1536 the parameters for the Envelopes of the second chart are 60 / 120 / 240 / 1440 {image} {image}
What is the octave values you used and why?

see what i did
using daily range 120pips
Attached Image (click to enlarge)
Click to Enlarge Name: One4.png Size: 68 KB
  • #50
  • Oct 26, 2017 8:04am Oct 26, 2017 8:04am
Quoting onojiwizard
{quote} What is the octave values you used and why? see what i did using daily range 120pips {image}
it is not that I do not want to answer

but play with the parameters and find the right one

the process is very simple :

find the right parameter for the Envelope 256 (yours 240) - the one when the Envelope encloses most of the price fluctuations, then divide by 2 for the next Envelope
  • #51
  • Oct 26, 2017 8:12am Oct 26, 2017 8:12am
Very easy : STAGE 1

I have used my present standard parameters for EURUSD

result is not enough significant
Attached Image (click to enlarge)
Click to Enlarge Name: GBP 1.jpg Size: 174 KB
  • #52
  • Oct 26, 2017 8:15am Oct 26, 2017 8:15am
STAGE 2 : Doubling of the parameters used to build the Envelope 256 (brown)

result seems ok - at least for me
Attached Image (click to enlarge)
Click to Enlarge Name: GBP 2.jpg Size: 193 KB
  • #53
  • Oct 26, 2017 8:16am Oct 26, 2017 8:16am
STAGE 3 : Applying the new parameters for the 3 Envelopes
Attached Image (click to enlarge)
Click to Enlarge Name: GBP 3.jpg Size: 184 KB
  • #54
  • Oct 26, 2017 8:25am Oct 26, 2017 8:25am
Seems subjective (curve fitting), but did scroll back through history, i see it fits over 80% of the time, nice
Attached Image(s) (click to enlarge)
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  • #55
  • Oct 26, 2017 8:30am Oct 26, 2017 8:30am
Let's assume you want to see the situation in a "longer term" for example in 5 Days / 5 minutes

you get this chart with the same parameters
Attached Image (click to enlarge)
Click to Enlarge Name: GBP 4.jpg Size: 218 KB
  • #56
  • Oct 26, 2017 8:34am Oct 26, 2017 8:34am
But you can prefer this chart by doubling the parameters

it depends on your "subjectivity "
Attached Image (click to enlarge)
Click to Enlarge Name: GBP 5.jpg Size: 220 KB
  • #57
  • Oct 26, 2017 8:44am Oct 26, 2017 8:44am
Now I want to apprehend the situation on a 1 Month basis

first chart uses the previous parameters of the last 5 Days / 5 minutes Chart

second chart uses the new parameters using the DOUBLING !

enjoy the fractalization and autosimilarity

most everything is in a good scaling
Attached Image(s) (click to enlarge)
Click to Enlarge Name: GBP 6.jpg Size: 178 KB
Click to Enlarge Name: GBP 7.jpg Size: 189 KB
  • #58
  • Oct 26, 2017 8:58am Oct 26, 2017 8:58am
On a 3 Months basis - I know it becomes boring !

first chart uses the previous parameters of the last 1 Month Chart

second chart uses the new parameters using the DOUBLING !
Attached Image(s) (click to enlarge)
Click to Enlarge Name: GBP 8.jpg Size: 204 KB
Click to Enlarge Name: GBP 9.jpg Size: 210 KB
  • #59
  • Oct 26, 2017 9:09am Oct 26, 2017 9:09am
To make long explanations short , this Envelope methodology works :

- for all financial instrument
- for all time units.
- for analysis
- for trading
  • #60
  • Oct 26, 2017 9:11am Oct 26, 2017 9:11am
Can I ask how the centered moving averages are defined?

Some define them simply as shifted to the left, but then there are no values for recent bars, but you have that in your charts.

Others define CMAs with weights in addition to shifting.

What is the definition of your CMA?

In some of your charts, the MAs are shifted left. In some they appear not to be.

And then there's the question of envelope width. How is that defined?

I hope you can sort out my confusion?

Thank you!
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