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  • #41
  • May 12, 2008 10:20am May 12, 2008 10:20am
Ok, I just did another test in Excel and I'm not getting the same value as you are for the Longest Line.

I exported 60 minute interval data from Metatrader to csv, opened the file in excel, selected from 2008.05.01 to 2008.05.12 including, applied the mode function on the interval and got 1.5403

Again, "the mode is the value that occurs the most frequently in a data set".

So in my test, 1.5403 is the most common value at which eurousd traded throughout this month, with 6 occurrences, the first 4 on the 8th of the month, and the rest of 2 on the 9th of the month.

I applied the mode function on the close prices for each 60 minute interval.

What gives? What am I interpreting wrong?

1.5462 only has 2 occurrences so far, on the 9th of the month.
  • #42
  • May 12, 2008 10:34am May 12, 2008 10:34am
We are now pushing up through the 1% level around 1.5530, we will likely either reject this or move up to test the 5596 level.

If we settle below the 5530 level, then look for a move back toward the longest line and set up longs if you are so inclined.
  • #43
  • May 12, 2008 10:39am May 12, 2008 10:39am
Quoting tenantro
Ok, I just did another test in Excel and I'm not getting the same value as you are for the Longest Line.

I exported 60 minute interval data from Metatrader to csv, opened the file in excel, selected from 2008.05.01 to 2008.05.12 including, applied the mode function on the interval and got 1.5403

Again, "the mode is the value that occurs the most frequently in a data set".

So in my test, 1.5403 is the most common value at which eurousd traded throughout this month, with 6 occurrences, the first 4 on the 8th of the month, and the rest of 2 on the 9th of the month.

I applied the mode function on the close prices for each 60 minute interval.

What gives? What am I interpreting wrong?

1.5462 only has 2 occurrences so far, on the 9th of the month.
I am not able to answer your questions. Why not just either subscribe to TradeStation or some other market profile vendor. Why try and re-invent the wheel. Sorry, but you are on your own if you are trying to do something different.


Maybe I can find the function that does the calc in TS for you and post it here. I will look at this in a little while. Check back.
  • #44
  • May 12, 2008 10:49am May 12, 2008 10:49am
Not to sound offensive, but what you said indirectly tells me you don't really know how that Tradestation indicator or study works.

If you don't know how it really works, no offense, but why open this thread and give "signals" towards the price direction of the eurusd?

I'm just a beginner in trading and there's no justification at the moment for me to pay for Tradestation, I don't need it that much right now, simple as that.

The way I see it, your thread is only useful to people :

  1. that have Tradestation,
  2. have the indicator or study that you're using and
  3. are willing to blindly take advice from you towards price direction, or
  4. can figure out on their own how it works and how to use it, most likely by interpreting the code of the indicator if it's not compiled.

Let's say I'd be willing to consider paying for Tradestation, only if you would've presented us with enough reasons.

As long as you don't even know how it works and why it works the way you say it does, why would we even be interested in continuing to follow this tread?

edit: sorry I did not see you posted the code before I wrote this, I will take a look, thank you.

Ok, after taking a brief look and comparing with a Tradestation reference for functions, this does calculate the Mode, but it seems to further process it. It probably does more than just take the value at which most of the trading has occured, so it's more complicated that you said it is.
Although I'm not familiar with EasyLanguage, I will further try to understand what the code does, and report back here for the rest of the people that might be interested in replication this in Excel.

  • #45
  • May 12, 2008 10:53am May 12, 2008 10:53am
Quoting tenantro
Not to sound offensive, but what you said indirectly tells me you don't really know how that Tradestation indicator or study works.

If you don't know how it really works, no offense, but why open this thread and give "signals" towards the price direction of the eurusd?

I'm just a beginner in trading and there's no justification at the moment for me to pay for Tradestation, I don't need it that much right now, simple as that.

The way I see it, your thread is only useful to people :

  1. that have Tradestation,
  2. have the indicator or study that you're using and
  3. are willing to blindly take advice from you towards price direction, or
  4. can figure out on their own how it works and how to use it, most likely by interpreting the code of the indicator if it's not compiled.

Let's say I'd be willing to consider paying for Tradestation, only if you would've presented us with enough reasons.

As long as you don't even know how it works and why it works the way you say it does, why would we even be interested in continuing to follow this tread?

edit: sorry I did not see you posted the code before I wrote this, I will take a look, thank you.


So I guess you know exactly how the motor in your car works right? Yet you depend on it to get you reliably from one point to another. You are missing a very important concept to wealth building. Why don't you just assume that I don't know what I am doing and stay with what is working for you.
  • #46
  • May 12, 2008 10:55am May 12, 2008 10:55am
Possible move for week 05/11/08

EUR/USD

1.5700
1.5200

175 for the week

220 pip divergence / 5 days = 45 pip break

= 1.5457 + 45 = 1.5502 go long
1.5457 – 45 = 1.5412 go short

220 - 45 = 175 pip potential profit in place for this week.

no me importa donde va siempre gano
  • #47
  • May 12, 2008 11:03am May 12, 2008 11:03am
Quoting tenantro

The way I see it, your thread is only useful to people :

  1. that have Tradestation,
  2. have the indicator or study that you're using and
  3. are willing to blindly take advice from you towards price direction, or
  4. can figure out on their own how it works and how to use it, most likely by interpreting the code of the indicator if it's not compiled.

I am asking no one to "blindly" take advice from me. I am going to discontinue this thread as I feel I am giving the wrong impression here. Sorry, I was just trying to show you how I trade.

I'll try something else. DRT
  • #48
  • May 12, 2008 11:12am May 12, 2008 11:12am
Quoting DownRiverTrader
So I guess you know exactly how the motor in your car works right? Yet you depend on it to get you reliably from one point to another. You are missing a very important concept to wealth building. Why don't you just assume that I don't know what I am doing and stay with what is working for you.
Sorry but the car analogy is not on the same level.

While you can drive a car without knowing how the engine works, you can't expect to make money by trading if you don't know how your indicators work and what they do.

You seem like a knowledgeable person, I read some of your other posts and you seemed to know a lot about the Bell Curve...and also judging by your use of terms like "standard deviation", I presumed you actually know a lot about statistics in general as well.

Therefore it didn't even cross my mind that you did not know what Mode was and that you would not be able to fully confirm that the indicator or study you use is based on studying the Mode.

Your thread so far is similar to a blackbox trading system where only a limited number of people have the source code (tradestation).

I did not contest your trading skills, I merely questioned the purpose of this thread.For helping and sharing, or more of a "journal" where you log possible price directions for the pair?

If it's supposed to be more of a journal, sorry I interrupted.
  • #49
  • May 12, 2008 11:15am May 12, 2008 11:15am
Quoting DownRiverTrader
I am asking no one to "blindly" take advice from me. I am going to discontinue this thread as I feel I am giving the wrong impression here. Sorry, I was just trying to show you how I trade.

I'll try something else. DRT

DRT, I enjoy and have enjoyed your post for two years now. If you move let me know where you move to. I do not blindly follow your advice, but I believe your system of trading. By following the range movement and the levels you post have made me a more controlled trader. I'm always open to your ideas and your thoughts on the market. Thanks
  • #50
  • May 12, 2008 11:25am May 12, 2008 11:25am
I give up on the EasyLanguage code, hopefully someone that does know EL can explain what it does.

I took a look at the EL reference guide and some of the functions used confuse me...some sound as if they involve tick volume or similar...since I'm not familiar with EL I have no idea what they do exactly and I'm not sure there's any point in familiarizing myself with EL just for this.
  • #51
  • May 12, 2008 11:32am May 12, 2008 11:32am
My trading is not based on an indicator. This is not an indicator. I do not use indicators. They are worthless. All this does is visual tell me where supply and demand lie. I interpret price direction based on what I see and more importantly what is "known".

When people make comments like the gentleman above, they do "indicate" something to me.

My method is my own. I can not point someone to a document or website to let you learn it. The only thing I can do is show you how I trade. I was trading price distribution long before Tradestation included this archaic method of price analysis in their platform.

Most people here are some kind of metatrader devotees and I do not want to get in the way of this, frankly I can trade with only time and sales which is about 90% of my decision making process.

Good luck.
  • #52
  • Edited 12:02pm May 12, 2008 11:51am | Edited 12:02pm
Again, I did not contest your trading skills, yet you are very defensive and annoyed that I dared to ask how the indicator, method etc you presented works.

Since I never worked with Tradestation before, I have no idea what the file you uploaded is.So I presumed it's some sort of indicator or statistical study.

If you're not actually interested in at least explaining things a bit, then again, what is the purpose of the thread?

It wouldn't have taken very long.

So far you seem to want it to be more of a journal, my attempt to participate and the few questions I asked only annoyed you.

Maybe I did a mistake and I should've been apathic instead, standing by and wondering silently at your analysis.

You say you just wanted to show us how you trade, I appreciate that, I honestly do, but since you are so generous, why does it upset you so much that I asked a few very,very simple questions?

Thank you for the idea of price distribution analysis, but given the way you reacted I'm not convinced that you master it fully.

Again, knowing what the mode is is something incredibly basic in statistics, yet even though you use words such as standard deviation, you do not know what a mode is and that it's the basis of the price distribution analysis you use.

I'll continue to find out more about it on my own.
  • #53
  • May 12, 2008 12:39pm May 12, 2008 12:39pm
Tenantro,

If you happen to find out how to do this is Excel could you post it up or shoot me a pm. I have been following along and actually did exactly what you did in excel and got the same mode, but that obviously isn't the correct value, so I'm pretty sure the longest line value isn't mode, or it isn't only done in 60 minute intervals.....Anyways, you aren't the only one who uses excel, as some might have you believe...
  • #54
  • Edited 1:23pm May 12, 2008 12:55pm | Edited 1:23pm
The EasyLanguage code that DownRiverTrader pasted and which now seems to have been deleted does calculate a Mode but it seems to do further processing on it.

So this is why I was saying that the Longest Line he mentions is not simply "the price at which the most trading has taken place during the month" because "the price at which the most trading has taken place during the month" IS just the Mode.

So the statistical study he applies in Tradestation calculates more than just the mode for the month in order to obtain the Longest Line.

This is why I was hoping he could explain a little bit, so that we can replicate it in Excel.It does not sound that complex and there's no reason to pay almost 100 dollars a month just for doing what we could do in Excel or other package for free.

I was left under the impression that it also uses some sort of tick volume but I'm probably wrong...like I said I do not know EasyLanguage.

Hopefully someone that does can help us out and hopefully the source code is contained in the edl file DownRiverTrader posted.

edit: currently sifting through 2 MarketProfile books, hopefully i can find a similar algorithm or at least more specific instructions to help us do this in Excel.if i do find something I will post back here.
  • #55
  • Edited 1:46pm May 12, 2008 1:40pm | Edited 1:46pm
Excellent thread DownRiver.

Some of you may find this useful:

Option Volatility and Pricing
  • #56
  • May 12, 2008 2:20pm May 12, 2008 2:20pm
Out of curiosity, I calculated the Mode based on 1 minute data for the whole current month, the result is very, very close to what DownRiverTrader obtained, 1.5464

I'm not sure if it's enough to draw the conclusion that Tradestation calculates it based on 1 minute data as well.
  • #57
  • May 12, 2008 2:29pm May 12, 2008 2:29pm
DRT this is an excellent thread. Please do contiue what you are doing.
  • #58
  • May 12, 2008 3:19pm May 12, 2008 3:19pm
The test I did earlier was with data from Metaquotes. I just finished another test with data from Alpari that is missing a portion of 4hrs of the 9th day's trading data for some reason...

The mode this time is 1.5466

I think now is relatively safe to conclude that the Longest Line is indeed the Mode of the month calculated for 1 minute or lower time intervals.
It will also slightly vary depending on the data source you use.
  • #59
  • May 12, 2008 7:37pm May 12, 2008 7:37pm
DRT,

First of all, thanks for your very precious posting.

And, I'd like to ask you:

Is the Longest Line - 1.5462 same as the River before ?

Is there a way to find out when is the very last time the price visits at the Longest Line - 1.5462 ?


trader8686
  • #60
  • May 12, 2008 11:01pm May 12, 2008 11:01pm
Great view on price and value zones DRT! Many thanks for posting and helping to open new perspectives and providing new insights!

One question: The other zones in your chart / are they from previous clendar months?
cheers,
IST
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