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Trading PlanetX & Oscillators

  • #1
  • First Post: Edited Mar 23, 2022 1:45am Mar 17, 2022 1:55am | Edited Mar 23, 2022 1:45am
Important Update
The thread has evolved faster than I expected. Thanks to Parisboy and R4M, we now have a great tool (Focal Point Indicator) to complement PlanetX. Focal Point is still a work in progress and it is ready for use. Please refer to Post 49, 108, 125 and 134 to see how Focal Point indicator has evolved so far.

Trading PlanetX & Oscillators
This space is an offshoot of the PlanetX Indicator thread. The goal of this thread to explore trading with PlanetX and Oscillators that can provide additional edge. In my experience, I have tried many indicators and I can safely state that oscillators are great for trading. Beyond that, MM provides the real edge.

Acknowledgement
I appreciate the hard work put in by Ohitsyou, BestTraderEV. Thumbs up to SwingMan.

Objectives

  1. Trade with PlanetX
  2. Use any additional edge (MM, S/R e.t.c.)
  3. Share the trade journal (Screenshot of the trade and target)

Rules

  1. Keep your chart neat and tidy
  2. No other indicator is allowed except the ones on the first post
  3. Do not post any other indicator on this thread (Ohitsyou, BestTraderEV and SwingMan are exempted from this rule.) They have the liberty to add valuable tools.
  4. No bad language
  5. Be nice

Indicators
The indicators below are available on the PlanetX indicator thread.

Attached File(s)
File Type: ex4 OIY-PlanetX-OnChart.ex4   19 KB | 615 downloads

Attached File(s)
File Type: ex4 PlanetAwesome-OnChart-Signals.ex4   10 KB | 529 downloads

Attached File(s)
File Type: ex4 OIY-PlanetX-Hist-v8.0.ex4   25 KB | 647 downloads

Attached File(s)
File Type: ex4 PlanetAwesome-Oscilator-v5.2.ex4   24 KB | 553 downloads

Attached File(s)
File Type: ex4 OIY-SchaffTrend-Hist.ex4   60 KB | 503 downloads

Attached File(s)
File Type: ex4 R4M-FocalPoints-v0.001.ex4   51 KB | 529 downloads | Uploaded Mar 21, 2022 4:08am

Attached File(s)
File Type: ex4 R4M-SMA-Intersections.ex4   60 KB | 416 downloads | Uploaded Mar 23, 2022 1:45am
  • #2
  • Edited 2:44am Mar 17, 2022 1:57am | Edited 2:44am
Some thoughts

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My chart looks like this today.

  1. I prefer to add on to trades as the trend progress. Find your own way and trade that way.
  2. This thread isn't about a specific strategy. It's about how you utilise MM and other approaches to extract value from the market.
  3. Avoid overthinking
  4. Trade what you see. PlanetX may spot the trend change or continuation, what you do with the signal is all that matters.
  5. Adjust your lot size appropriately after every loss or profit

Now let's get the ball rolling.

  • #3
  • Mar 17, 2022 2:27am Mar 17, 2022 2:27am
Here is one of my favorite combinations -- PlanetX plus DSS-Bressert. These complement one another well. Sometimes it seems to me that traders obsess over a losing trade or when an indicator's signals arene't perfect. Not only will they never be perfect, they don't even have to be. As long as the indi generates a correcting signal shortly after a head-fake then the damage is minimal and the new signal makes up for the small loss. If the indi doesn't generate a correcting signal and keeps you in a losing trade for a long period then that IS a problem.

The simplest way to use an oscillating indi is to trade from transition to transition. And then you can refine your approach from there. For example, @BestTraderEv uses PlanetX's signals as "alerts" and incorporates a variety of other clues to define his Entries and Exits. There is no right or wrong way to trade. Trade what you see, and as you gain more experience you will see more.

Attached Image (click to enlarge)
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Attached File(s)
File Type: ex4 OIY-PlanetX-Hist-v8.0.ex4   25 KB | 466 downloads
Attached File(s)
File Type: ex4 DSS Bressert.ex4   14 KB | 432 downloads
  • #4
  • Mar 17, 2022 3:51am Mar 17, 2022 3:51am
Additional sample trades.

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  • #5
  • Mar 17, 2022 3:51am Mar 17, 2022 3:51am
Another indicator that complements PlanetX is DSS-RVI -- which is my own concoction. It applies Bressert's "double smoothing" algebra to the RVI (Relative Vigor Index) indicator.

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Attached File(s)
File Type: ex4 R4M-DSS-RVI-Hist.ex4   91 KB | 422 downloads
  • #6
  • Edited 5:08am Mar 17, 2022 4:01am | Edited 5:08am
This has been posted before in the other thread, but is worth repeating...

Even though it is not apparent when staring at the main price chart, few people have remarked how price moves as a pendulum. There are only a few indicators that reveal this repeating pattern. I don't think many traders take advantage of this observation because it's not obvious when staring at bars in the main price chart.

This pendulum pattern is due to repeating patterns of local highs / lows and is NOT the same as oscillations seen in MACD or RSI -- which are NOT based on local highs / lows.

These pendulum patterns are most suitable for swing trading -- where swings occur every 3-8 bars, approximately.


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  • #7
  • Mar 17, 2022 4:07am Mar 17, 2022 4:07am
Another post worth repeating -- related to the pendulum pattern...

Core body temperature as a function of time...

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All systems hover around some midline / equilibrium / fair market value, drifting above and below some equilibrium value. That includes systems like core body temperature, currency exchange, and many others.

All systems have some kind of inherent feedback control that prevent them from imploding to zero or exploding to infinity. The feedback mechanisms that keep currency exchange rates hovering around some fair market value must be extremely complex and probably no one knows all of the possible feedback mechanisms.
  • #8
  • Mar 17, 2022 4:32am Mar 17, 2022 4:32am
LOL
  • #9
  • Mar 17, 2022 4:53am Mar 17, 2022 4:53am
Quoting mixedbags
LOL
And your day job -- asking customers if they want fries with their burger?

I'm sorry your feelings were hurt -- but that was over two years ago. Time to put on those big boy pants -- ya think?
  • #10
  • Mar 17, 2022 6:22am Mar 17, 2022 6:22am
Quoting robots4me
Another post worth repeating -- related to the pendulum pattern... Core body temperature as a function of time... {image} All systems hover around some midline / equilibrium / fair market value, drifting above and below some equilibrium value. That includes systems like core body temperature, currency exchange, and many others. All systems have some kind of inherent feedback control that prevent them from imploding to zero or exploding to infinity. The feedback mechanisms that keep currency exchange rates hovering around some fair market value must...
hello Robots4me

About Oscillations , Pendulum Pattern - classical Return to the Mean
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  • #11
  • Mar 17, 2022 10:52am Mar 17, 2022 10:52am
Quoting parisboy
{quote} hello Robots4me About Oscillations , Pendulum Pattern - classical Return to the Mean {image} {image} {image}
Hello @parisboy -- so, so nice to hear from you. Maybe I'm beginning to see the light?

So, I have a question for you. The pendulum pattern that I'm referring to and which currently interests me can be seen in the Stochastics indicator. Where does Stochastics fit in your wave / cycle theories. It's not the same, is it? The Stochastics pattern is more local, right?

I've brought up the pendulum pattern before but no one gets it. My main point is that ALL systems, every single one of them, hover around some equilibrium. That chart of body core temperature was just another example -- it looks like Stochastics to me. And in order to hover around an equilibrium there must be feedback mechanisms that keep whatever metric we are monitoring -- be it price or temperature -- from imploding to zero or exploding to infinity. ALL systems have feedback mechanisms. It's the feedback mechanisms that keep the metric within a channel. Do you understand what I'm getting at?
  • #12
  • Mar 17, 2022 2:26pm Mar 17, 2022 2:26pm
Quoting robots4me
{quote} Hello @parisboy -- so, so nice to hear from you. Maybe I'm beginning to see the light? So, I have a question for you. The pendulum pattern that I'm referring to and which currently interests me can be seen in the Stochastics indicator. Where does Stochastics fit in your wave / cycle theories. It's not the same, is it? The Stochastics pattern is more local, right? I've brought up the pendulum pattern before but no one gets it. My main point is that ALL systems, every single one of them, hover around some equilibrium. That chart of...
Hello Robots4me

a) it is NOT "my" wave / cycle theory". This "theory" you quote is the end result of the work of many researchers
b) as for stochastics I do not use
c) My main point is that ALL systems, every single one of them, hover around some equilibrium. I agree. But IMHO you make a (dangerous) confusion between a living process , let's say a biological one, and an electronical-financial one which shows us similar charts on a computer screen.

It natural to generate analogies, human beings do that all the time, but analogies have their limits.
Hence the right questions are ;

what have both processes in common
what differentiates both processes

I have no problem with your Pendulum Pattern. I use it all the time
with the Return to the Mean of varipus Centered Moving Averages
or with the Gann concept of balancing Price and Time
or with the Concept of Cycles Saving Account (a time variant of the Return to the Mean)

Jim Hurst worked as an engeneer in the aerospace industry and he was hired by a group of investors to test the "theory"(ies) you quoted. Let'say that he thought he could improve our knowledge of the market by using the tools he used daily in his work. Let'say that Hurst saw some similarity between the charts he produced for his work and stocks charts.

Peter Haurlan one of the main managers of the Jet Propulsion Laboratory had a similar thinking and used the technique of recalibration of the guidance of Intercontinental Missiles and apply this technique to the market.

Hence I suspect both Hurst and Haurlan would agree with you ALL systems have feedback mechanisms. It's the feedback mechanisms that keep the metric within a channel.

How to identify this feedback mechanism ?
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  • #13
  • Mar 17, 2022 2:54pm Mar 17, 2022 2:54pm
Let's compare charts GBPJPY 1 H
https://www.forexfactory.com/attachm...5&d=1647506942
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  • #14
  • Mar 17, 2022 3:47pm Mar 17, 2022 3:47pm
Everybody would agree that the blue Envelope envelopes very well most of GBPJPY fluctuations between March 4 th and March 18 th .

But these fluctuations count for only 15 % of the Upmove
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  • #15
  • Mar 17, 2022 3:57pm Mar 17, 2022 3:57pm
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  • #16
  • Mar 17, 2022 3:58pm Mar 17, 2022 3:58pm
Quoting parisboy
{quote} Hello Robots4me a) it is NOT "my" wave / cycle theory". This "theory" you quote is the end result of the work of many researchers b) as for stochastics I do not use c) My main point is that ALL systems, every single one of them, hover around some equilibrium. I agree. But IMHO you make a (dangerous) confusion between a living process , let's say a biological one, and an electronical-financial one which shows us similar charts on a computer screen. It natural to generate analogies, human beings do that all the time, but analogies have their...
@parisboy -- excellent, excellent post -- thank you, sir!! It's a huge relief to hear from you we are on the same page. Taking a closer look at DSS-Bressert and your chart that showed the MA oscillating around the midline, then I could see these were the same oscillations. The only difference is that DSS-Bressert normalizes the deltas so they can be plotted in a subwindow, which makes them much easier to see.

As to some of your other points...

* I know it's not your theory and figured that because of your modesty you would point that out. But I felt like giving you credit because whenever waves / cycles comes up in a discussion I'll always point people to your thread. You are the resident expert...

* The reason I brought in the biological example is two-fold: (1) My training is in research biochemistry, computer engineering and software development -- so, the visual similarities are striking to me; (2) I understand the biological example and its basis better than the financial one; (3) since we know the biological one employs feedback mechanisms, then it follows the financial one would, too; (4) and, finally, ALL systems employ some form of feedback -- they would have to otherwise they would implode to zero or explode to infinity.

* thanks for the background information about Jim Hurst and Peter Haurian -- very interesting.

* as for detecting the feedback mechanism(s) -- certain indicators do that.

* as for what is responsible for the feedback in the FX system -- I'd say it is extrememly complex with many interdependent elements. Plus, no doublt, it includes some manipulation. In any event, much too complex for us to understand. However, and this is a big HOWEVER, we do not need to understand it in order to use it in our trading. By observing its pattern we can deduce much of its behavior, and that understanding provides an edge. We don't have to know all the elements that go into all the feedback mechanisms affecting a system -- instead, we can deduce clues from the way it affects the metric we are interested in (i.e. price in this case).

I'm looking forward to discuss this further with you or anyone else. Again, thank you @parisboy.
  • #17
  • Mar 17, 2022 4:05pm Mar 17, 2022 4:05pm
Haurlan Paper

https://www.mcoscillator.com/downloa...n_MTAaward.pdf
  • #18
  • Mar 17, 2022 4:11pm Mar 17, 2022 4:11pm
Quoting parisboy
Haurlan Paper https://www.mcoscillator.com/downloa...n_MTAaward.pdf
Thank you. A bit over my head -- my last math class was in the previoius century. But I will browse it and extract what I can.
  • #19
  • Mar 17, 2022 4:19pm Mar 17, 2022 4:19pm
Quoting robots4me
{quote} Thank you. A bit over my head -- my last math class was in the previoius century. But I will browse it and extract what I can.
Haurlan explains in his paper why and how you do not need high mathematics to recalibrate, redefine in short precise the trend as it develops itself.

Everything which is complex is made to part you of your money by selling you books, seminars, webinars, newsletters, signals etc

McClellan father was a marketing man, he gave interviews and made speeches at conferences. During this time Mrs McClellan do the maths because she was a mathematician. Hence she could calculate EMA's on her kitchen table. His husband could not !
  • #20
  • Mar 17, 2022 4:29pm Mar 17, 2022 4:29pm
Quoting parisboy
Everybody would agree that the blue Envelope envelopes very well most of GBPJPY fluctuations between March 4 th and March 18 th . But these fluctuations count for only 15 % of the Upmove {image}
Nice example. But let's make a distinction between oscillations and a major move. If one trades a super-trend following strategy then, sure, the major move is important. But when swing trading the major move is of secondary importance. These days I'm only interested in the "natural" oscillations revealed by indicators like DSS-Bressert, Schaffer Trend Cycle, Stochastics, and a few others. Of course, when you zoom-in then these oscillations can also be described in terms of trends. But there is a trading edge when you choose a time frame that reveals these "natural" oscillations.
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