DislikedI short at 1.9711, inside the yellow line, a bit too early
but will not be prepared to suffer more than -20pips
if it turns out be bad
No clear direction even till now.Ignored
out of market for the time being
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Dislikedstop loss triggered with bad news
out of market for the time beingIgnored
Dislikedhow to draw that 2 lines? upper edge chaos and lower edge chaos? and the 2 yellow lines as well.Ignored
“Given a system of arbitrarily many mutually attracting material points that obey Newton’s laws, try to find, under the assumption that no two points ever collide, a representation of the coordinates of each point as a series in a variable that is some known function of time, and converges uniformly for all real values of that variable” [the solution to] this problem. . .will considerably extend our understanding of the solar system. . .”
In other words, (if the asteroid reach the end of Planet A in its revolution, it will be repelled by Planet A, and the asteroid will reverse its motion and will moved back to Planet B.
Conversely, if the asteroid reaches the end of Planet B, it will be repelled by it, and the asteroid will reverse its motion and will moved back to Planet A.
DislikedYou have to learn it from me and it is not a plugin or mechanical solution that we discuss in public forum since this the engine of the solution to what once thought of as impossible solution to using chaos theory to trade financial markets. However, I still use the thread to throw more light on how it works. I do not want to be boastful but I will offer you simple insight into how Henri use similar method 100 years ago. You can google articles on Henri Poincaré you will find a lot of stuff on how chaos theory originated in physics.
In 1885, he stumbled upon a contest printed in the journal Acta Mathematica and commissioned by King Oscar II of Sweden and Norway. The contest asked for a general solution to the n-body problem:
“Given a system of arbitrarily many mutually attracting material points that obey Newton’s laws, try to find, under the assumption that no two points ever collide, a representation of the coordinates of each point as a series in a variable that is some known function of time, and converges uniformly for all real values of that variable” [the solution to] this problem. . .will considerably extend our understanding of the solar system. . .”
History has it that Poincaré could not solve the problem using quantitative system of equations; however, he reversed back to a very simple approach. Rather than trying to explicitly solve the equations of motion, as mathematicians before him had always done in the past, he looked at the qualitative behaviour of planetary bodies - for example, whether they were organized or orderly or followed more irregular or random paths. He found that the behaviour of planetary bodies are highly organized! Can you imagine that! Billions of stars created by God followed a uniform behaviour in their motion. He had not quantitatively solved the n-body problem, according to history however, he was awarded King Oscar’s prize for his discoveries in January 21, 1889.
To get a rough idea of how chaotic orbits or path or trajectory of heavenly bodies might be, Poincaré imagine a small asteroid, being attracted by two larger bodies – which can be called planets A and B see the first image below of the two planets.
In other words, (if the asteroid reach the end of Planet A in its revolution, it will be repelled by Planet A, and the asteroid will reverse its motion and will moved back to Planet B.
Conversely, if the asteroid reaches the end of Planet B, it will be repelled by it, and the asteroid will reverse its motion and will moved back to Planet A.
He also discovered that given the right initial conditions, it is possible for the asteroid to alternate between the two planets, spending some of its time revolving around Planet A, and some time revolving around B If we track (follow, observed, experiment) which planet the asteroid goes around at each revolution we will get an idea of its behaviour when it is at planet A or at planet B instead of trying to generally predict its movement around planet A and B at the same time.
It is more than this, the general description of his universe looks like the wings of butterfly and noted if we plug out one wing to study the motion in detail the shape of the trajectory we look exactly like a shape of a butterfly - just exactly like the original butterfly shape……..the more we go into details at each level the more shapes of butterflies we will have……endless and changeless shape. Does that sound familiar to you? (Everlasting and changeless World…..a world without end the promise of Jesus Christ).
Henri became the first person in human race to recognizes the way God arranged things in the universe, though himself did not know the hand of God in his observation, and no one did or took him serious until Edward Lorenz in 1960 started applying the same theory to a smaller body like the earth’s weather systems or motions and discovered the exact same pattern.
Although Edward's concept of buffer fly effects has been misleading and mis-interpreted by financial chartists and technicians – What he was trying to say is that: globally the weather system have two distinct types, cold and warm system and the shape may look like that of butter fly. If however, we detached cold system and study it in detail we will have same shape like butter fly, the more we zoom into an area to study it the more it reveals its details and they look the same just like the parent bodies, this is the same consistency with Henri’s chaos theory.
The next person that have really taken the concept more seriously is Professor Benoit Mandelbrot of Yale University knowingly or unknowingly his works on fractal geometry has consistently exposed how things are arranged in fractal pattern in harmony with the consistency with the ways billions of stars and galaxy are arranged. The shapes of two galaxies bordering each other look just the same like the wings of butter fly. The motion of the billions of stars in one galaxy looks like the shape of one wing of a butter fly or like a wave or eddy current, hurricane, turbulence, it even looks like the waves created by FINANCIAL TURBULENCE with peaks and valleys, tops and bottoms, and move in periodic and orderly manner.
In recent years Richard Hudson, (former managing editor of the European Wall Street Journal) and Professor Mandelbrot published a new book: “The (mis)Behavior of Markets : A Fractal View of Risk, Ruin, and Reward” and officially recorgnised that financial markets fractals and calls for ways to use fractal geometry to study finance.
This is how one editor reviewed the works of Mandelbrot:
[Many traders at big banks and hedge funds already employ some elements of fractal theory. But don't read Hudson and Mandelbrot's book expecting to get rich. After all, it's still early days for fractal finance, says Hudson. "Much more research, by many more people, is required--which is exactly why we wrote the book." For now, the book's greatest value might lie in convincing investors to think twice about what they've been told about how markets should work--but so often don't] Canadian Business (TorontoCA) January 31, 2005 ◊ Jeff Sanford, Staff Writer
This is where my own application of chaos and fractal geometry to finance took off. As s Geographer it suddenly dawn on me that the problem the financial world has been trying solve is very simple! It is a scale problem and our understanding of how things are created to function in the entire universe.
You will agree that instead of just showing you how to derive those levels it is more important to understand how prices motion behaves in their own universe and at different levels before they reached those levels you are interested.
More importantly if we agreed that waves or pattern created by price motion looks like fractal patterns and similar to patterns of other motions of other bodies in larger galaxies and the entire universe then God must have a hand in financial chaos. And since God created everything in His Name - the name of Jesus Christ, then we can declare that our Lord is also in forex, everywhere we go His fractal patterns are living testimony of His presence with us. Therefore, financial trading cannot be as confusing as it is to many people since Jesus Christ is not a Master of confusion but of simplicity. Just take for example how Jesus Christ humble himself in everything, if we humble ourselves too, to every financial waves, we will always be victorious.
It is more than this. If you manage your account the way Jesus Christ instructed us to manage His Father's wealth we will be careful in blowing our account away. Put Him in front of every trade, he is the Master of everything including financial problems. If you put Him first this year, you will see His almighty hand in everything you do.
Ignored
DislikedToday's chaos is bullish depending on the initial condition.
See graph below before the present price action
Analysis is based on initial condition which will be determined
after london openedIgnored
Dislikedyesterday eventually turned to support bearish chaos.
lost 30pips was recovered.
Today's chaos = bullish
However, there is pending UK news.
preferred entery level is above 1.9556 and buy to 1.9826 if possible
Alternative: Sell below 1.9556 to unknown destination probably 1.9503Ignored
DislikedToday's chaos = bullish
Preferred level I hope to be bullish will be 1.9550 and buy
to 1.9817 if market permits.
The disadvantage at this point is uncertainty and fear in the market, price may pushed up to upper edge even before london opens.
If that happened I will do nothing.
Details and alternatives are shown in my analysis graph below
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Risk: Analysis is for own use, and depend on certain internal conditions of market behaviour at London open -seek advice before applying this chaos commentary to your trading.Ignored