Volman meets Burke or My journey with PA

Getting closer. Created an oscillator from the RVI that mimics price and gives potential entry signals. Almost finished.

Looking forward to the Ultimate version

Final version as the chart looks. Need to do a final coding. All the dots and stuff on price are the potential entry points. Some very minor refinement may be required. The BIG change was to go to WMAs v HMAs. Then taking the RVI, Relative Volatility Indicator (which uses a standard deviation calculation on the up and down value for the chosen period), and turning it into an oscillator that nearly mimicked price. From here I defined rules for entry points.

When I came back from my hiatus was 3 weeks short of two years. Then to now is almost 30 mos. This is how long I have worked with range bars. 2-tick (pips for most) range is where I am with the Russel2K. In that time I have come to understand how price works. Combine that with the reality of how much money is truly required to move any given market a significant distance, say something like the fictitious stop hunt, you can just deal with real and true Price Action. Yes, sorry to tell you, but your candle time charts are lame. They are in essence an indicator as all you have is O, H, L, C. It tells you nothing of what has occurred in that time period. Where price moved first. Did it do that a few times. I laugh a little every time anybody using time charts says, "I trade price action". Nope.

Had to get that out.

The progression of how I look at price.

Started out with candle sticks.



This just became a mess with all my squigglies. I moved to just line on close, as the high or low is only 2-ticks distance and I use only close for calculations.



This also proved problematic trying to keep up with where price is/was among all the other ma's. So I evolved again and settled on just that point, the Close.

I showed this to emphasize what "reading" real price action is. And from here, for me to be able to fully interpret it, I created this system.

Those of the left ideology are truly some sick, deranged souls ...

This is a 13-range chart (13-ticks ~ 13-pips). As is clearly seen price moves in what appears to be an angular cyclical manner. I look at it more as waves or "ripples" of various magnitude. Since many of those ripples are of tradeable size, I spent many moons to create a system to read this movement. Using the fib sequence 1,1,2,3,5,8,13,21,..., up to my largest value 1597, I fit various moving averages into these wavelets. I consider these parameters as the various frequencies of price action.

The final result is as shown above but it will have the helper arrows as I am getting a touch lazy and prefer not to have to think too much about entry decisions. So doing the heavy lifting now to finally finish this beast. It will be well worth it as from what I am seeing, this will rank as a top 2 or 3 manual trading systems out there. Yes, I do believe that with conviction.

One more quick one about how I think the market works in the present time.
Our current way of trading is fairly recent. The first "official" stock exchange was in Amsterdam in 1602. Need to fast forward to 1817 when the NYSE was established. Then likely to the later 1800s when charting become the vogue. I think this time period is when things gelled into what we would recognize. Up until the internet being a viable thing, trading was open outcry.

Now that nearly all trading is electronic, there needs to be a way to match orders. Yup. The algorithm. It is not the sinister entity most make it out to be. Nor does it nefariously manipulate the market. It simply matches orders according to some code that controls it.

Stop hunts are not a real thing as it requires too much capital for them to exist. Forex traders make this claim often. So, supposedly, in a $6 Trillion a day market, some joker "market maker" can actually, in reality move price enough is a total fantasy. Even most central banks can NOT sustain forced price movement for very long. See Japanese Yen. Since most forex trading is done off market any smaller discrepancies are likely a result of broker shenanigans and not the so-called market maker.

Liquidity grabs are another total fallacy. If you ever look at an instrument that has real volume you will see that there is volume available up and down that price ladder. The exception would be an instrument without the needed liquidity. This causes larger, quicker moves in price as there is no one available/willing to take the other side. Those that believe in this will argue that the volume profile proves otherwise. I counter that with there are not some unknown number of orders sitting at some point but rather certain moves of price brings in more orders at those points.

What could be responsible for some of these types of moves in the current day is likely numerous algos being used by the entities that can have some affect. Since many firms trade in similar fashion these bots can move the market. An example would be the 1000 ET news point. Watch it on days when there is no news.

jr , ooy well good you got some things out ha , some other ideology that holds many back also , the world isint the only place lacking common sense , seen you have passed thru a certain ,bar ,,before , and dont want to upset anything you found or think you found in any way on your journey , will say like it or not , even with range bars guess whats still passing on by ,not that one has a whole lot to do with the other never ever looked at this one before , that dosent matter much either same sh-t different name , one can see your range bars in time , and time in your range bars
one looks close thy could see it in that , sure you peeked before then , the best part of the day was long over with

30 months worth of looking at bar worth 2 of a range, ooy thats a lot of looking , there was a a bit of a range , there was another derangement symptom for a short time there , anyway , good week end to you , was nice to see someone with possibly some common sense Mr spzd , dukes up

yeah, I could do an analysis for them but why bother anymore, so I stick to drive by's to irritate as much as possible, but that's me ...

I love my 2-range bar. And it is all falling right where I had hoped it would, to create a system that fits me, very satisfying.

Thank you for the kind words, sir. And a pleasant weekend and prosperous future.

And during that 30 months it was not stare at a chart all day. But it was ALL range bars.

jr , ha not sure the month , dosent matter , your join date of a certain place is 5 years after I was born , Ill call you sir till a reason not too , I may be a second generation of such , some things came with other things and ooy thank goodness or your glasses would be thicker than an old fashioned coke bottle real glass bottoms after staring at charts for that long our definition of that may be different ha, wont lie , I did have a different kind of teacher ,you may be on the fringe of those generations , some were pussies then , just bigger ones today and older, even more pathetic ,cowards cant take the yeller out their spines , one dosent change a horse in midstream , leopards cant change their spots etc etc and most of all '''''''people'''''''''''dpnt change , never have , never will , PERIOD and I may or may not be an oopsie of one that wasent , sh-t happens right ,okay I was an oopsie , duties or responsibility was never shunned by a certain half , pretty sure of that , and and as sick as it may sound it was to the death ha which brings up another thing thankful for a mum that stepped in no wishy washy no quivering or quiveling , and well she is my mom now , PERIOD , I was more than a chess piece to her , and I may or may not have spent some time absolutely hating him ,and her , now a days a bit different tho , , your peek again date well the range that wasent really a range just another same ole , or just another little picture inside a much bigger picture ,I guarantee, there was the same oles too ,the know it all know nothings easily spotted , there was some morons shorting at the little circle on the right with 0 in mind , omg what a hoot , I know you been around long enough to know the ''''''type '''''' , venture to say you probably know the dipsh=t referenced , neither here nor there , anyway , whether range bars, time bars there is some places it wont matter like the end of a day or the end of a week or the end of a quarter , wont be one of any type that didnt go anywhere the other didnt , wont matter the name in top left corner they all play the same and kudos to you for '''''''specializing ''''''''' in utilizing a piece of the pie with range bars , case you venture out with well in a certain """"""""""""" bar""""""""""" terms with a gumpy or perhaps the old fashioned way to say a runner or 3 you will utilize that too , there is never nothing new or different , they beholden to same things , seen clips of a movie a few times cant think of the name basically comes down too the red or the blue pill ,
My born on date and your join date of something , you must be real, you wasent purged in the great purging of ff when it got found out how much fake sh-t was on tweeter , bout a 43 % purge or so across the board on anything relatable , probably an ''''''''''industry standard''''''''' at the time , you with a some common sense will understand dukes up Mr Spzd , was a bit limited , was raised a bit old school ,envied a friend or two with the parents they had at the time , sure as hell dont now did see a few spongebob thingys , patrick was cool ,something to be said for living under a rock but not really under a rock in many things , he was always there keep both middle fingers in the air to the so called '''''''''they/it'''''''''''
(will also say those things posted above mean blank all nothing , some things will just be a '''''''''''DUH''''''''''''to any that actually learned anything , and for some one talking bout a 2 yes a 2 range bar , does it really mean anything at all ,unless ,ha unless a runner or a gumpy or 3 for a grin and a chuckle , will never fault one for trying to utilize more , Friday the russell had what for a """"""""""range""""""""" 36 thats 18 of the ones you concerned with or what you say you concerned with , and it was just another same ole day in the grand scheme of things , along with another same ole that comes out the same ole time o of any same ole omg step the blank back , the nfp and not that it isint a bird of feather thing , but not the exact bird mentioned , all have a few different nuances , just saying an one only has to eyeball the mids of certain places to get the drift of the red and blue , ,the matrix , thats the one , name of the movie , came to me eventually ones who never got past pretending to be something they not , they not a big thing really where Im from , kudos for them for getting paid for it , but they still nothing but that, most of em a waste of O 2 beyond their own mind and you know where the 2 would be relative to the zero )

A main reason for the use of range bars is the uniformity. For the Russell2K I am using a quite small 2-range bar. If I were working with Gold or Nasdaq I would use a larger range due to the amount of volume. Since everything is uniform it allows one to get more creative in their approach. It also eliminates the, to me and how I view it, variable of time which skews many calculations because a time bar is also an indicator more than it is price.

Then over time it is very obvious the cyclical nature. Then kinda step inside the matrix by eliminating the time variable and you can see price moves in what seems to be waves or ripples inside the cycles.
Because range bars have the nature they do of being more toward pure price, I was able to duplicate price in an RVI oscillator.




For the RTY @ $50 point and each of those moves highlighted with entries being at least 6 points. You do the math.

The box and circle are the spots from the previous pic. About a 14 point -140 ticks (pips) move.

The spot though. Muscle memory? or algos?

[quote=spzd;15533626]{quote} A main reason for the use of range bars is the uniformity. For the Russell2K I am using a quite small 2-range bar. If I were working with Gold or Nasdaq I would use a larger range due to the amount of volume. Since everything is uniform it allows one to get more creative in their approach. It also eliminates the, to me and how I view it, variable of time which skews many calculations because a time bar is also an indicator more than it is price. Then over time it is very obvious the cyclical nature. Then kinda step inside the matrix by eliminating the time variable and you can see price moves in what seems to be waves or ripples inside the cycles. Because range bars have the nature they do of being more toward pure price,
well said!
regards
goma