Analysis and Trading based on Envelopes, Waves, Cycles

Thanks, I will try to read the thread first.

Most technical explanations of the various tools have already been detailed and explained on the thread.

I can assure you that you will not lose your time and energy by reading the thread.

Moreover, even if everything is connected and related and constitutes a system / methodology, every tool can be used separately which IMHO is a good motivation to go further.

Tillmann Forks on the EURUSD

Hi Parisboy
I need your help if you can.
I just discovered on my MT5 that I have envelopes and would like to put them on an M15 chart and would like to monitor from the same M15 the action of H4, D and if possible W.
What setting can you suggest?
My guess are:
Period 16 to see H4 (as there are 16 M15 bars in 1 H4)
Period 96 for D
Period 480 for W
Correct or I'm totally wrong?
What about "method", "deviation" and "apply to"?
I don't have a clue what is best.

Thanks

Merka - thank you for your interest

a) shift : can MT5 shift the Envelope back ?
b) which financial support are you trading ? at least for your test

then I will try to show you what is possible on TradingView, why and teh pros and cons

regards

HERD Theory

a) Yes it's possible to shift as per my picture above.
b) let start with the classic EURUSD
Just a note aside. I don't see any middle curve on these MT5 envelopes
Cheers

OK Merka

EURUSD 1 Day / 1 mn

Envelopes parameters are :

Envelope 256 (brown) : 0,015625
Envelope 128 (ocre) : 0,0078125
Envelope 32 (blue) : 0,00390625

all 3 Envelopes are shifted 16 data points back (in the past)

EURUSD 5 Day / 5 mn

Envelopes parameters are :

Envelope 256 (brown) : 0,03125
Envelope 128 (ocre) : 0,0015625
Envelope 32 (blue) : 0,00078125

Parameters have DOUBLED

all 3 Envelopes are shifted 16 data points back (in the past)

EURUSD 1 Month / 30 mn

Envelopes parameters are :

Envelope 256 (brown) : 0,00625
Envelope 128 (ocre) : 0,003125
Envelope 32 (blue) : 0,0015625

Parameters have DOUBLED

all 3 Envelopes are shifted 16 data points back (in the past)

EURUSD 3 Months / 60 mn

Envelopes parameters are :

Envelope 256 (brown) : 0,0125
Envelope 128 (ocre) : 0,00625
Envelope 32 (blue) : 0,003125

Parameters have DOUBLED

all 3 Envelopes are shifted 16 data points back (in the past)

EURUSD 6 Months / 120 mn

Envelopes parameters are :

Envelope 256 (brown) : 0,0125
Envelope 128 (ocre) : 0,00625
Envelope 32 (blue) : 0,003125

Obviously you do not need to Double the 3 Months Parameters

all 3 Envelopes are shifted 16 data points back (in the past)

Everybody his strong point : some guys manipulate the market, others manipulate others guys.

posted on another thread

I always keep things simple (at least I try to do it) because I entered in trading in 1972 in Paris . I was 22 then. Could you imagine the numbers of hours I spent before a chart since then ?

At the time we only could use simple tools :

- pencils
- rubber
- ruler
- protractor
- graph paper

these were the tools available when people like Wyckoff, Gann, Elliott developed their concepts and methodology to analyze and trade the market

In 1972, it was not the time for lazy traders.

Every evening I and my father we collected data of interest in the french newspaper which published the quotations
then we reported the data on the chart

IMHO that is the origin of the fact that many people value straight lines, not that I do not use them anymore

As for "Lines" I use :

- Horizontal Lines for Price (SRL) Support and Resistance Lines
- Vertical Lines for the Time
- Diagonal Lines (Angles) for Speed and Acceleration

but also

Curvilinear Lines for Envelopes and Support or Resistance Curves linked to Volume according to MIDAS Theory from Paul Levine

SRL's, Angles, Envelopes and other Curvilinear Lines help me to understand the Fractal Nature of the Market and to apprehend its complete picture as a whole.

posted on another thread

Quoting robots4me
{quote} @parisboy -- I browsed through the Power Points and sort of got a flavor. A couple of questions: .

2. Regarding vibrations -- do you think price data follows natural vibration patterns or that the MM uses algorithms to simulate vibration patterns? We've been using the term "MM psychology" but, really, what does that mean? I get what @George is referring to, but "MM" is an abstract concept and it doesn't have a psychology. I can't hold MM in my hand, or point at it or draw it. And only a human mind can have a psychology. What really...
@robots4me

as for "Vibrations" Gann refered very often to a "Law of Vibration" ...... which he never detailed and explained.

Gann told us that every financial entity is more sensitive to a specific "vibration"

My understanding of the "vibration" question is the following.

Look at the Facebook chart. I like Facebook, because we have all the data since its IPO and we have seen with our own eyes Facebook Price Action develops itself

An "after act" analysis shows to be short :

a) at the beginning Facebook Price Action has developed itself within a "Fractal of Price " of 0-50 noted Square 1- then Gann Octave was at the Time 50 / 8 = 6,25 . Let's say that FB was more sensitive to this interval than to others.

b) then FB Price Action has developed itself with the time going and entered in the "Fractal of Price" of the degree above 0-100 - noted Square 2 -
note that parameters have DOUBLED

Gann Octave was at the time 100 / 8 = 12,5 = 2 x 6,25. Then FB Price Action is at this time specifically sensitive to both 12,5 and 6,25 intervals

c) then FB Price Action extended its time factor , then its price entering in a new "Fractal of Price " 0-200.

Gann Octave becomes 200 / 8 = 25 having again DOUBLED. Facebook Price Action is yet simultaneously specifically sensitive to octaves (intervals ) of 25, 12,5, 6,25

d) then with the time going FB Price Action entered in a new Fractal of Price doubling its Time Parameter but not its Price Parameter - noted Square 4

Notice 2 things :

- Time Parameter never goes backwards , Price can. This way within Square 4 or the next Square Price Action could go under 100. Then we HALVE the parameters and FB Price Action will be considered more specifically sensitive to 100 / 8 = 12,5 ( and 6,25, 3,125, 1,5625 etc)

- as Life is not perfect Price Action does not stop always right on the line. It is why it exists between 2 Fractals of Price a Phase of Transition Zone where Price Action is reputed not to have choosen its direction Up or Down.

posted on another thread

@robots4me
hereunder you will find a 3 Months GPBJPY chart with a built-in "Gann Square" - automated and not hand-drawn -

This "Square" underlines some specific Lows and Tops which are aligned

We can identify 1 Support (in red) and 2 Resistance ( green and brown))

As I am not versed in "MM Psychology" and @George's point of view, could you elaborate a little about"Herd Mentality " and Herd Validation Area

I understand the link done by some here between Wyckoff's Congestion Area and Herd Validation Area . But are a "normal" resistance" or support line generated by Price Action something linked to "Herd Mentality" or is there more specific conditions to respect

posted on another thread

Quoting robots4me
{quote} @parisboy -- I browsed through the Power Points and sort of got a flavor. A couple of questions:

1. Regarding the use of parabolics -- to me that is curve-fitting, after the fact. I've done a lot of data analysis of RF spectrum data -- and we chart the data in different ways to enhance weak signals. I mean, if I can solve for the constants then I can get a polynomial equation to fit all kinds of data patterns, right? So, what is so significant about fitting parabolic curves to price data -- after the fact. If you could send me the constants...

@robots4me I have identified the flaws you and some others on this thread or @george thread are suffering !

Do not worry these are some very usual and common traders diseases

a) - the repainting syndrome
b) - the after the fact / curve fitting syndrome

I will treat the "repainting syndrome" in a later post showing what is really the consequence of alleged "repainting" and the practical approximation mean I have used to fill the "lagging part" of envelopes , moving averages etc to try to dissipate "the fog of trading" (Clausewitz )

On this post I will focus on Fibonacci and the "after the fact" syndrome

a) "After the fact" analysis shows that up and down Price Action trends are visually most of the time "parabolic"
b) Fibonacci serie is graphically parabolic
c) Graphic Fibonnaci serie mimics a parabol, then the Price Action

Note that the key point with Fibonacci is not the known serie which is only a particular condition of this serie with the starting point = 1. The key point with "Fibonacci" is the relationship between numbers within the serie

Take randomly 2 numbers , apply them the Fibo relationship, after 10 / 12 occurences you get the famous 0,618 and 1,618 relationship

This fact explains IMHO why there are relationships within Price Action between Tops and Lows
Note that you can have within Price Action various fibo series at work depending on different starting points

This is related to the fact that Tops and Bottoms are not of the same , nature, degree, order. Hence the need to have a methodology and a tool to rationally sort and classify Tops and Bottoms.

d) Gann division by 8 of the Price Range , whatever Price Range, mimics (approximates) relatively closely but very simply the Fibo serie
then Gann division by 8 of the Price Range mimics a parabol, then mimics Price Action behaviour

Hence the division by 8 used by Gann

- Horizontally generating the Support and Resistance Lines (SRL)
- Vertically generating the Vertical Time Line
- Diagonally generating the Speed Lines more known as Gann Angles


Key factor is the starting point or baseline of the Price Range

I will dissert later on the advantages of "after the fact analysis" proned by Duane Archer and Charlie Goodman under the name of "Post Mortem"