Analysis and Trading based on Envelopes, Waves, Cycles

Indicator spectrometer Mladena. Phase and group velocities of waves

Thank you for your interest Wens

a) i do not use MT4

b) the real question is how do you use this spectrometer in real trading ?

Most of the time "spectrometers" and friends do not work on real trading.

The key is to understand what is the UNDERLYING TREND.

Your chart does not even show a composite result.
The components are regular in phase, period and amplitude which is NOT the case in real life.

A "spectrometer" result can be more or less useful ( personally I trust my eyes and my brain) IF the Underlying Trend is Flat / Neutral.

If the Trend is Up or Down Cycles Tops are located on the Right or the Left of the Cycle which no "spectrometer" shows.

By the way Mladen does not trade in the real life.

Hello! I have not tried the indicator myself yet, it has been with me for a long time. I saw a question about cycles and decided to post the indicator here. Maybe someone will need it more.

Examples:

DAX 1 mn

Short in Progress

Target 12475 +/- 9

DAX 1 mn

Closed Short position in the vicinity of the Lower Boundary of the Envelope 256 (brown) + 142 points

Trade managed without the help of a Spectrometer !

Notice that the Underlying Trend is reasonably bearish

Hi Parisboy,

I'm still following along with your great thread & notice the explanations on post 4204 & 4205 along with the results on post 4207 with your target being reached with no indicators needed. Outstanding explanations on how to use cycles. Again thank you for sharing your knowledge & all the source materials you post.
Best of trades to you in the days ahead.

Ace thank you for your kind words

a complementary explanation on how Cycles work.

Ace

hereunder you can observe the Directional Change follow up in real life : a counter trend rally within a bearish trend

as the Descending rate seems to slow down as the Period and the Amplitude of the Cycle(s) shorten, we can suspect that Price Action could soon transition from Bearish to Sideways , the Underlying Trend transitioning from Bearish to Flat / Neutral

DAX 5 mn

Return to the Mean and Directional Change

DAX 1 mn

Bearish Underlying Trend influence

DAX 1 mn

Return to the mean

DAX 1 mn

DAX 1 mn

Short in progress

Daniel T. Ferrera about "Hand Charting"

Hand charting is a dying art form due to computers and chart publications.

Maintaining a set of hand drawn charts on your favorite markets is strongly recommended! It takes very little time each day (only a few minutes) to update these charts.

By doing so, you become much more mentally connected to the market and will have little difficulty in remembering important prices.

Hand charting makes you much sharper and more alert to upcoming opportunities. It also gives you a better feel for the market that can develop into a type of intuition, which cannot be obtained by any other means.

I have even gone as far as drawing intra-day charts by hand. I suggest that you resurrect this lost art if you are truly serious about taking on the trading profession.

In summary, charts are used extensively because they are the best graphical representation of human logic and emotions.

They show us visually the cumulative effect of all the participants involved.

Charts also expose potential opportunities that might have otherwise escaped your attention. Hand charting connects you to the market more so than simply reading a chart. There is a certain level of expertise that can only be acquired from the manual process of drawing a chart. Markets are like people; each has its own personality, habits and nuances.

Your hand drawn charts will become your encyclopedia of knowledge of the market's action.

Charts are much more than a simple history of past prices.

They reflect and depict the ideas, actions, reactions, and emotions of the traders commercial interests and speculators involved.

If you want to write like someone in particular, just begin copying their work verbatim a few times, and you will develop a feel for their writing style.

If you want to paint like someone in particular, simply trace their artwork several times and you will develop similar skills and again obtain a feel for their style.

Drawing charts by hand accomplishes this same intuitive feeling for the markets.

This is not a requirement for success, but it is something that you should do as a standard operational procedure.

Just because there are more efficient methods to get the task done does not mean they are superior!

Try hand-drawing charts of the markets you are interested in for at least 2 months and I think you will be more than convinced of their value.9


Hand charting is a dying art form due to computers and chart publications.

Maintaining a set of hand drawn charts on your favorite markets is strongly recommended! It takes very little time each day (only a few minutes) to update these charts.

By doing so, you become much more mentally connected to the market and will have little difficulty in remembering important prices.

Hand charting makes you much sharper and more alert to upcoming opportunities. It also gives you a better feel for the market that can develop into a type of intuition, which cannot be obtained by any other means.

I have even gone as far as drawing intra-day charts by hand. I suggest that you resurrect this lost art if you are truly serious about taking on the trading profession.

In summary, charts are used extensively because they are the best graphical representation of human logic and emotions.

They show us visually the cumulative effect of all the participants involved.

Charts also expose potential opportunities that might have otherwise escaped your attention. Hand charting connects you to the market more so than simply reading a chart. There is a certain level of expertise that can only be acquired from the manual process of drawing a chart. Markets are like people; each has its own personality, habits and nuances.

Your hand drawn charts will become your encyclopedia of knowledge of the market's action.

Charts are much more than a simple history of past prices.

They reflect and depict the ideas, actions, reactions, and emotions of the traders commercial interests and speculators involved.

If you want to write like someone in particular, just begin copying their work verbatim a few times, and you will develop a feel for their writing style.

If you want to paint like someone in particular, simply trace their artwork several times and you will develop similar skills and again obtain a feel for their style.

Drawing charts by hand accomplishes this same intuitive feeling for the markets.

This is not a requirement for success, but it is something that you should do as a standard operational procedure.

Just because there are more efficient methods to get the task done does not mean they are superior!

Try hand-drawing charts of the markets you are interested in for at least 2 months and I think you will be more than convinced of their value.9

TUBB'S LAW OF PROPORTION

Frank Tubbs was one of the first published market technicians to quantify the process of action-reaction.

His Stock Market Correspondence Lessons were written in the 1920s and 1930s when wild swings were the order of the day.

Lesson 9 of Tubbs' correspondence course was titled the Law of Proportion.

Tubbs claimed an 80% success rate of predictions made according to his Law of Proportion.

According to Tubbs:

Aggregates and individual stocks tend to run one-half, two-thirds, three-fourths of previous moves. First in relation to the next preceding move which was made. Then in relation to the move preceding that.

According to the Law of Proportion the reaction from the 30-100 swing (70 points) would be from 35 points (50%) to 52 points (75%), immediately followed by counterswing in the same direction of the next preceding swing.

The counterswing would have a 1/2, 2/3, or 3/4 relationship to the bear swing from 100-46 and the bull swing from 30-100. The action-reaction process would continue until the high or low of the next preceding swing was broken.

Tubbs said that his Law of Proportion was a guideline and not a rule.

Computer addicts could may be apply some rigorous back-testing of their own to check if Tubbs' Law of Proportion is a worthy trading system.

In any event Frank Tubbs deserves your recognition for his pioneer work in quantifying the market's action-reaction phenomenon.

My indicators are not "public" it seems. It is just that I did know how to "publish" them !