Attachments: Analysis and Trading based on Envelopes, Waves, Cycles

Analysis and Trading based on Envelopes, Waves, Cycles

#10,121
Edited 3:24pm Apr 8, 2023 2:53pm | Edited 3:24pm

parisboy
Joined Oct 2017 | Status: Trader | 12,472 Posts

BTCUSD 30 mn

I use FLD's (here FLD 32 (blue)) - Price Action offsetted 16 Times Units i the future - mainly as a Trend following Tool

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#10,122
Edited 3:26pm Apr 8, 2023 3:00pm | Edited 3:26pm

parisboy
Joined Oct 2017 | Status: Trader | 12,472 Posts

BTCUSD 1 Hour

I use FLD's (here FLD 32 (blue)) - Price Action offsetted 16 Times Units i the future - mainly as a Trend following Tool

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#10,123
Edited 3:27pm Apr 8, 2023 3:05pm | Edited 3:27pm

parisboy
Joined Oct 2017 | Status: Trader | 12,472 Posts

BTCUSD 4 Hour

I use FLD's (here FLD 32 (blue)) - Price Action offsetted 16 Times Units i the future - mainly as a Trend following Tool

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#10,124
Apr 8, 2023 3:32pm Apr 8, 2023 3:32pm

parisboy
Joined Oct 2017 | Status: Trader | 12,472 Posts

BTCUSD Daily

I use FLD's (here FLD 32 (blue)) - Price Action offsetted 16 Times Units i the future - mainly as a Trend following Tool

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#10,125
Apr 8, 2023 11:02pm Apr 8, 2023 11:02pm

bobcheung
| Joined Apr 2023 | Status: Trader | 2 Posts

@parisboy, Hey PB, i learnt a lots for your replies between different threads, and i appreciated all your guideline using envelops, coz i realized the envelops is really a powerful tool if combined with other methods. at least i know where am i with the board lines either 128TU or 256TU. So i tried to set up my envelop packing in my own trading software according to your instruction, and tested them with different stocks, some of them fit perfectly well but some of them seems not quite good fitting, so i am wondering if the range i used in my formula was wrong, the range i used was all-history-high deduct all-history-low, then divided by 8 to get my Octave under 256 TU; then divided by 2 to get my 128 and by 4 get my 32; but it seems somewhere you used 100 as range and somewhere you used short period low-to-high range, and the octave you used were different under different time frame like 1min, 5mins, 60 mins, Day (4H) and week, etc; So am i wrong using all-history-high deduct all-history-low as range for all the time period? btw, i am a stock trader in Asia, thanks a huge!

#10,126
Apr 9, 2023 3:39am Apr 9, 2023 3:39am

parisboy
Joined Oct 2017 | Status: Trader | 12,472 Posts

Quoting bobcheung

Disliked

@parisboy, Hey PB, i learnt a lots for your replies between different threads, and i appreciated all your guideline using envelops, coz i realized the envelops is really a powerful tool if combined with other methods. at least i know where am i with the board lines either 128TU or 256TU. So i tried to set up my envelop packing in my own trading software according to your instruction, and tested them with different stocks, some of them fit perfectly well but some of them seems not quite good fitting, so i am wondering if the range i used in my formula...

Ignored

Thanks Bob for your question and your interest. Could you post some charts that I could more precisely answer your question

#10,127
Edited 6:13am Apr 9, 2023 3:55am | Edited 6:13am

parisboy
Joined Oct 2017 | Status: Trader | 12,472 Posts

Quoting bobcheung

Disliked

@parisboy, Hey PB, i learnt a lots for your replies between different threads, and i appreciated all your guideline using envelops, coz i realized the envelops is really a powerful tool if combined with other methods. at least i know where am i with the board lines either 128TU or 256TU. So i tried to set up my envelop packing in my own trading software according to your instruction, and tested them with different stocks, some of them fit perfectly well but some of them seems not quite good fitting, so i am wondering if the range i used in my formula...

Ignored

Bob hereunder some remarks about the Envelopes methodology.

a) the Envelopes do not deal with Stocks, Indexes , Forex Pairs, Cryptos whatever but with Charts on a Screen (originally graph paper) that is Points on a screen. Similarly Envelopes work whatever Time Frame you work with

b) originally Hurst determined visually by trial and errors the Amplitude of the Envelopes using a band of paper . Then the name Hurst Bands too.
The main idea being that the Envelope contains "most of Price Action " within its Boundaries. "Most of" being left to you and me.

c) I discovered Hurst in 2006. As I used since 1998 the "Gann Octave" (vibration, frequency), that is the division by 8 of the Price Range on a Chart , I used this Gann Methodology to calculate the Amplitude of the 3 Envelopes I used ( sometimes 4 or 5 Envelopes on a very Long Time Chart). Then all Envelopes Amplitudes are Harmonics of 2

d) Hurst uses also in PM and in his Course the name of Dominancy Envelopes which, at least, outlines one of the use of Envelopes : showing the "dominant" trends within the Envelopes system.

#10,128
Apr 9, 2023 5:57am Apr 9, 2023 5:57am

bobcheung
| Joined Apr 2023 | Status: Trader | 2 Posts

Hey PB, many thanks for your quick reply and patiently explanation, not quit sure what do you mean by "the Envelopes do not deal with Stocks, Indexes", but it seems works with stock:

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Above two images were from apple(AAPL), you can see it works great, but since i used all- history-high (181.80) and all- history-low to get my range, and then divided by 8, all-history-high (181.80) is quite easy to get since it is unique, however, all-history-low is depend on how along i trace back, 1 year, 5 year or from IPO? i mean the Envelopes Amplitudes is changeable, longer i trace back, wider the channel is that's why i am wondering should i use the fixed number for Octave? eg. 1.25 for all stock that below 10 and 12.5 for price between 10~100, etc. or, i only trace back limited timeframe?

Have a nice weekend!

#10,129
Apr 9, 2023 5:59am Apr 9, 2023 5:59am

parisboy
Joined Oct 2017 | Status: Trader | 12,472 Posts

Long Term DAX Chart Daily

using 5 Envelopes

3072 ( 12 Years) - black
1536 -( 6 Years)- kaki
256 - (1 Year) - brown

128 - 6 months (ocre)
32 - 6 weeks (blue)
and a
as you can observe on a Long Term Chart Envelope 32 and 128 are not useful

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