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Quad Candle System

  • #2,181
  • May 12, 2018 9:57am May 12, 2018 9:57am
Quoting Masterrmind
{quote} I started trading in the 80's mostly in stocks back in the day. I have embraced technology though and isn't it vastly different from way back then..... Yes I look forward to a highly productive technical exchange.

But be warned that I may ask for examples of trade setups once in awhile from you and other traders because I want to see how you would or are about to take a trade and your reasoning behind such a trade.

I like to see a practical connection with the theoretical aspects of trading, afterall isn't it the reason we trade ... to make...
Mastermind you are welcomed

Hurst Bands or Dominancy Envelopes allow us to rationalize and hierarchize Tops and Bottoms, Waves annd Cycles.

Hereunder in green you see 3 Ascending Valid Trend Lines drawn between 2 successive bottoms of the same order, degree, nature.

Here the bottoms noted B1 are bottoms which are on or very close of the lower limit of the Envelope 32 Time Units.

As long as Price Action is above the corresponding Ascending VTL , we can say that Trend is UP.

When Price Action breaks the Ascending VTL on the downside this generates a cyclical Action Signal and in this case on confirmation of Price Action a Short Position.

You can notice that some bottoms are also noted B3. This means that these bottoms are on or very close from the lower limit of the Envelope 256 Time Units (in brown)

The depth or Amplitude of the Envelope 256 is (in this case) equal to 2 Octaves
Attached Image (click to enlarge)
Click to Enlarge Name: VTL & ACTION SIGNAL.jpg Size: 192 KB
  • #2,182
  • May 13, 2018 7:43am May 13, 2018 7:43am
Quoting OAPDave
{quote} Gives me a Trade Frame start point see my post above
I like the concept of a trading frame !

Do your business inside the square/rectangle or let your stop take you out.

Mastering the trading decisions within the trading frame is the name of the game.

Masterrmind.............
Master your Mind then Master your Trades
  • #2,183
  • May 13, 2018 8:06am May 13, 2018 8:06am
Found this interesting if a little above me !!!!!
https://www.mql5.com/en/market/product/15320
  • #2,184
  • May 13, 2018 10:15am May 13, 2018 10:15am
Quoting Masterrmind
{quote} I like the concept of a trading frame ! Do your business inside the square/rectangle or let your stop take you out. Mastering the trading decisions within the trading frame is the name of the game. Masterrmind.............
Tradingview gives us a Trading Frame à la Gann

A 20 Time Units x 20 Price Units Trading Frame which allows us to :

- "Square " Price and Time
- Draw a (1x1) Angle - 1 Price Unit x 1 Time Unit Angle

and Trading View even shows us the Support & Resistance Line (4/8) (Center of Gravity ) of the Trading Frame
Attached Image (click to enlarge)
Click to Enlarge Name: TRADING VIEW GANN TRADING FRAME 20 x 20.jpg Size: 229 KB
  • #2,185
  • May 14, 2018 8:40am May 14, 2018 8:40am
Quoting parisboy
{quote} Tradingview gives us a Trading Frame à la Gann A 20 Time Units x 20 Price Units Trading Frame which allows us to : - "Square " Price and Time - Draw a (1x1) Angle - 1 Price Unit x 1 Time Unit Angle and Trading View even shows us the Support & Resistance Line (4/8) (Center of Gravity ) of the Trading Frame {image}
Price units matched to time units is indeed a 1x1.

Notice on your chart I have added in some red annotation.

The diagonal line you drew as a 1x1 is it accurate ?

Check the slope of the 40 deg line (across to the right hand side of your chart).
Attached Image

Clearly (by observation) the slope of the 40 deg line is far steeper than the 1x1 large diagonal line you drew on your chart.

Can you explain this difference ?

Are you satisfied with this approach ?

Masterrmind..............
Master your Mind then Master your Trades
  • #2,186
  • Edited 1:00pm May 14, 2018 12:42pm | Edited 1:00pm
Quoting Masterrmind
{quote} Price units matched to time units is indeed a 1x1. Notice on your chart I have added in some red annotation. The diagonal line you drew as a 1x1 is it accurate ? Check the slope of the 40 deg line (across to the right hand side of your chart). {image} Clearly (by observation) the slope of the 40 deg line is far steeper than the 1x1 large diagonal line you drew on your chart. Can you explain this difference ? Are you satisfied with this approach ? Masterrmind..............
Masterrmind, your question is ..... very classical.

Gann Angles cannot be correctly expressed in degrees on our computers.

Basically your screen is a rectangle, a quadrilater.

On a computer screen a (1 x 1) Angle - (1 Price Unit x 1 Time Unit) is NEVER a 45° Angle. Check with the protractor on whatever platform or software you use.

On the chart you have annoted the (1 x 1) Angle < 30 ° that is what I optically get with my protractor

The slope or "angle" depends of the dimensional relation between how is graphically expressed the Time Unit and how is graphically expressed the Price Unit

Gann at the time used graph paper where Time Unit and Price Unit representations are equal , drawing a square. Then the famous "when Time and Price squares etc ...."

See graph hereunder published by Gann in " The basis of my Forecasting Method"
Attached Image (click to enlarge)
Click to Enlarge Name: GANN ANGLE ORIGINAL SHEET 45°.jpg Size: 172 KB
Attached File(s)
File Type: pdf Gann_Angles_1.pdf   1,006 KB | 378 downloads
  • #2,187
  • May 14, 2018 12:59pm May 14, 2018 12:59pm
Quoting Masterrmind
{quote} Price units matched to time units is indeed a 1x1. Notice on your chart I have added in some red annotation. The diagonal line you drew as a 1x1 is it accurate ? Check the slope of the 40 deg line (across to the right hand side of your chart). {image} Clearly (by observation) the slope of the 40 deg line is far steeper than the 1x1 large diagonal line you drew on your chart. Can you explain this difference ? Are you satisfied with this approach ? Masterrmind..............
Masterrmind,

If you check with a protractor the slope of the VTL (Valid Trend Line) noted 40° is really 40°.

Check yourself the length of the gradation of Time and Price.

They are not equal.

Manually Time gradation = 1,4 cm and Price Gradation is 0,7 cm
Attached Image (click to enlarge)
Click to Enlarge Name: TRADING VIEW GANN TRADING FRAME 20 x 20.jpg Size: 229 KB
  • #2,188
  • May 14, 2018 6:55pm May 14, 2018 6:55pm
Quoting parisboy
{quote} Masterrmind, your question is ..... very classical. Gann Angles cannot be correctly expressed in degrees on our computers. Basically your screen is a rectangle, a quadrilater. On a computer screen a (1 x 1) Angle - (1 Price Unit x 1 Time Unit) is NEVER a 45° Angle. Check with the protractor on whatever platform or software you use. On the chart you have annoted the (1 x 1) Angle < 30 ° that is what I optically get with my protractor The slope or "angle" depends of the dimensional relation between how is graphically expressed...
Precisely!

This is where plenty of misunderstanding can easily occur since it is easy to associate a 1x1 as a true 45 degrees when in fact it does not nor is it most of the time.

If you look at Ganns notes especially the Graph paper you will see that he mentions 1x1 and 45 degrees together.

This is perfectly fine on squared graph paper but you are right regarding the computer screen (overwhelmingly rectangular).

The aim is to correctly identify a 1x1 or 2x1 or other such Gann angle (price in time) and not to get confused with thinking that a 1x1 on a given chart must be 45 deg.

By correctly identifying the 1x1 or 2x1 or 3x1 or 4x1 or 8x1 or other much 'flatter' angles in the case of slower moving markets , an example 'trendline' can be created and applied as a simple reference angle for other zones of PA interest on that particular chart.

Good response and the correct one.

ps. be careful with using the word "never" since it is possible to create a screen that displays price in time at precisely 45 degrees. It is achieved by being able to accurately modify the time and price scales until a 1x1 is exactly 45 deg and then lock in the scale.

Masterrmind............
Master your Mind then Master your Trades
  • #2,189
  • May 15, 2018 8:22am May 15, 2018 8:22am
EURCAD [D1; MT5 live]

Quad Long pattern + MML lower extreme zone

Now long.

Yes its a CAD pair with unfavorable swap.
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot1.png Size: 43 KB

Risk @ 2% (approx)
TP up in the clouds.

Generous initial stop hugging the longer term 88.6 Fib

Chart structurally the setup looks sound but not without some interesting pitfalls.

Masterrmind.............
Master your Mind then Master your Trades
  • #2,190
  • May 15, 2018 5:07pm May 15, 2018 5:07pm
Have a close look MM64 & MM256
Attached Image(s) (click to enlarge)
Click to Enlarge Name: EC 64.jpg Size: 426 KB
Click to Enlarge Name: EC 256.jpg Size: 434 KB
  • #2,191
  • May 16, 2018 1:49am May 16, 2018 1:49am
GBPUSD [D1]

On my radar as I look for another suitable pair to enter.
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot1.png Size: 44 KB

Market undecided on direction as price hugs the 1.35 handle.

Masterrmind............
Master your Mind then Master your Trades
  • #2,192
  • May 16, 2018 1:59am May 16, 2018 1:59am
Quoting OAPDave
Have a close look MM64 & MM256 {image} {image}
Price at 2/8 on one chart and 3/8 on the other one.

Make price go up !

Masterrmind.............
Master your Mind then Master your Trades
  • #2,193
  • Edited 6:29am May 16, 2018 6:18am | Edited 6:29am
Quoting Masterrmind
{quote} Precisely! This is where plenty of misunderstanding can easily occur since it is easy to associate a 1x1 as a true 45 degrees when in fact it does not nor is it most of the time.

If you look at Ganns notes especially the Graph paper you will see that he mentions 1x1 and 45 degrees together. This is perfectly fine on squared graph paper but you are right regarding the computer screen (overwhelmingly rectangular).

The aim is to correctly identify a 1x1 or 2x1 or other such Gann angle (price in time) and not to get confused with...

Masterrmind

Gann is ambiguous even in his graphical presentation.

IMHO Gann should have published only the Square in blue

Anyway even the "degraded" common version of Gann Angles used on current platforms and softwares allows traders to visualize ttne variations of Speed and Acceleration of Price Action.

Key questions about an optimal use of "Gann Angles" are :

- a correct scaling of both Price and Time

- the possibility to anchor a fixed starting point
Attached Image (click to enlarge)
Click to Enlarge Name: GANN GRAPH REAL SQUARE 45° ANGLE.png Size: 659 KB
  • #2,194
  • May 16, 2018 6:33am May 16, 2018 6:33am
Quoting parisboy
{quote} Masterrmind Gann is ambiguous even in his graphical presentation. IMHO Gann should have published only the Square in blue Anyway even the "degraded" common version of Gann Angles used on current platforms and softwares allows traders to visualize ttne variations of Speed and Acceleration of Price Action. Key questions about an optimal use of "Gann Angles" are : - a correct scaling of both Price and Time - the possibility to anchor a fixed starting point {image}
Yes indeed.

At the end of the day it is up to the trader to interpret Ganns material.

There is not one person on the planet that has the complete Gann methodologies since he never released them all.

Plenty of mystery.

The square you show is a key chart.

Masterrmind........
Master your Mind then Master your Trades
  • #2,195
  • May 17, 2018 10:22am May 17, 2018 10:22am
GBPUSD [D1; MML]

Now long from the 1.35 handle.
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot1.png Size: 46 KB

Masterrmind...............
Master your Mind then Master your Trades
  • #2,196
  • May 18, 2018 2:04am May 18, 2018 2:04am
Masterrmind, I am not to hot on Maths but i have been playing with our new tool, this is my effort,
3 screenshots using
3.125 - 0.0
1.5625 - 0.0
1.5625 - 1.17175
Now i see some familiar numbers?

ps Start on a Monthly chart to see loads of data, then you can zoom down ?
Attached Image(s) (click to enlarge)
Click to Enlarge Name: GBPUSDSBMonthlya.png Size: 85 KB
Click to Enlarge Name: GBPUSDSBMonthlyb.png Size: 85 KB
Click to Enlarge Name: GBPUSDSBMonthlyc.png Size: 88 KB
  • #2,197
  • Edited 3:06am May 18, 2018 2:54am | Edited 3:06am
OK , we have now used Whole, Half and Quarter numbers for our Trade frame what about 1/8ths
1.4648 - 1.3671
1.3671 - 1.2694
Attached Image(s) (click to enlarge)
Click to Enlarge Name: GBPUSDSBDaily3.png Size: 79 KB
Click to Enlarge Name: GBPUSDSBDaily2.png Size: 80 KB
  • #2,198
  • May 19, 2018 8:16am May 19, 2018 8:16am
Quoting OAPDave
OK , we have now used Whole, Half and Quarter numbers for our Trade frame what about 1/8ths 1.4648 - 1.3671 1.3671 - 1.2694 {image} {image}
Nice collection of different octives.

Where next ?

Ive gone long on the cable via a D1 analysis but certainly some risk involved.

Masterrmind........
Master your Mind then Master your Trades
  • #2,199
  • May 19, 2018 9:28am May 19, 2018 9:28am
Quoting Masterrmind
{quote} Nice collection of different octives. Where next ? Ive gone long on the cable via a D1 analysis but certainly some risk involved. Masterrmind........
I am having a bit of a debate about trade frame sizes with our friend and i can see his point of view but i am going to stick with my own Murrey view, lets just stick with basic Murrey numbers starting with 3.125 now to get 4 Quarters we would end up with
Bottom Quarter 0 - 0.78125
next up - 0.78125 - 1.5625
next up - 1.5625 - 2.34375
Top Quarter - 2.34375 - 3.125
So which trade frame are we sitting in at present ?
  • #2,200
  • May 20, 2018 9:51am May 20, 2018 9:51am
Quoting OAPDave
{quote} Yes agreed, now we have 2 options when we zoom down 1.5625 - 1.36719 or 1.36719 - 1.17188
I think its necessary to apply some trader discretion in this approach.

My preference would have to align with a 'best fit' in terms of chart structure.

Masterrmind............
Master your Mind then Master your Trades
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