Analysis and Trading based on Envelopes, Waves, Cycles

Envelopes Analysis allows you:

- to simplify the chart with a good accuracy
- to hierarchize the Waves (Swings)
- to reduce greatly any ambiguity

Alain
I have made my own Murrey Excel Calculator and I have added my version of Envelope calculations to it ( not sure if they are correct yet) time will tell , I am following your posts and although I am a bit slow I am getting it, but I am also checking out actual swings for my own amusement
Keep it coming my friend
Dave

Selling an old product under a new name and an attractive packaging is as old as trade.

For example you reshape the basic lazy trader concept of the previous century universally known as Support or Resistance under a new name like Herd Something and you do not use the term "the Market" but you talk only of "Money Makers" - acronymized in MM for the aficionados !

It is an old trick already used by Stan Weinstein reshaping Richard Wyckoff (1873 - 1934)

Commonality (Hurst) or Similarity between TMA and Murrey / Gann

D. Hickson with the Sentient Trader Market update for the S&P 500 dated 28th of may

Sixer

DOW Closed Short position + 57 points

Let me explain to all those of you interested why I like the division by 8 of a Price Range.

Before I have to clarify some points : I am a Lazy Trader using outdated concepts as trends and useless tools

hereunder you will find a chart , an Envelope chart based on Centered Moving Averages whose Amplitudes of the Envelopes are based on the division by 8 of the Price Range

I will use to compare with the Chart of @Robots4me EURUSD 30mn / 1 Month on TradingView

my parameters to build the Envelopes are a template 0.0015625 / 0.00078125 / 0.0039425

I use 3 Envelopes to "catch" or underline the "volatility '" of the EURUSD (related to the Time Frame)

Envelope 256 Time Units - brown - parameter 0.0015625 - Amplitude of the Envelope 256 = 2 x 0.0015625 = 0.003125
Envelope 128 Time Units -ocre - parameter 0.00078125 - Amplitude of the Envelope 128 = 2 x 0.0078125 = 0.0015625
Envelope 32 Time Units - blue - parameter 0.000390625 - Amplitude of the Envelope 32 = 2 x 0.000390625 = 0.0078125

a simple look at the chart shows that the 3 Envelopes includes most of Price Action fluctuations at Short Term (blue), Mid Term (ocre) , Long Term (brown) within the Time Frame

Let's come back to the relationship between the division by 8 of the Price Range within a Time Frame and the "Volatility" of the EURUSD (or whatever other financial support)

Let's observe the 1 Month / 30 mn Chart of the EURUSD

Can we say that EURUSD fluctuates within a Price Range 1,1118 - 1,1115 = 0.0065 ?

Let's divide 0.0065 by 8.

This gives (rounded) 0.008

Let's apply this new parameter to the Envelopes

Envelope 256 Time Units - brown - parameter 0.0008 - Amplitude of the Envelope 256 = 2 x 0.0008 = 0.0016
Envelope 128 Time Units -ocre - parameter 0.0004 - Amplitude of the Envelope 128 = 2 x 0.0004 = 0.0008
Envelope 32 Time Units - blue - parameter 0.0002 - Amplitude of the Envelope 32 = 2 x 0.0002 = 0.0004

And you got this chart

And if you are not satisfied with the parameters because you find that there are too many data not included within the Envelopes , you just have to DOUBLE the Parameters and that's all.

Envelopes parameters are now :

Envelope 256 Time Units - brown - parameter 0.0016 - Amplitude of the Envelope 256 = 2 x 0.0016 = 0.0032
Envelope 128 Time Units -ocre - parameter 0.0008 - Amplitude of the Envelope 128 = 2 x 0.0008 = 0.0016
Envelope 32 Time Units - blue - parameter 0.0004 - Amplitude of the Envelope 32 = 2 x 0.0004 = 0.0008

Then you got this chart