EUR/USD patterns

This idea has no predictive value alone. I may use the idea to sort through an overabundance of TL's (angled and horizontal) and time events, which do have predictive value, that may intersect between the areas.

the idea: Each chart area has a particular set of blue-colored shapes -- triangle, box, ellipse, line -- with different overlap, angle and size. A wide, light-colored (deep sky blue) line approximately separates the areas.

There's a dozen pictures in order and between two posts. Also, I didn't put any shapes on the first one, to help tell the difference with and without shapes. Finally, the line shape is a little difficult to see, and may get confused with the thin intersection of two other shapes.

(continued from last post)













For anybody interested in trying to explain the divisors between these areas with TL's, events or otherwise, the divisor times are (in gmt (not my usual gmt +2) ):
2009, December
3rd 0332 0719 1044 1348 1542 1755 2139
4th 0207 0636 0922 1311 1559 1732 1840 2046

A beginning is the volume and price spreads of each bar and area of bars, here.

I tried a few things, first a midline of each area that also midlines vertically from high to low in the area. This worked fair.
Then, I tried a bunch of minor bsTL's -- solid hz's from st's, dashed hz's from big candles, and TL's for small-spread bsTL's -- at each area border, a different color at each one, until enough lines seemed to take care of the big move: 1,2,3,4,5,6,7,8,9,10,11,12. (Yellow dashed vertical lines, for high-volume bars, were unused.)
It's discretionary and contains a bit of luck; it also acts like a row of 1psb's, with lots of throwoff TL's and hz's. I wanted something on the 1' to go with the natural rhythm of the chart, rather than force logarithmic cycles on it when, I now realize, are everywhere; I'll save logarithmic cycles for the upper TF's, since it condenses data nicely.

If this doesn't work down the road, I'll try something else. The point is, the shapes method pictured in the last and this post make boundaries of significantly different patterns. You don't have to measure the patterns beyond mere recognition, and imprecision is welcome within each area.
Finally, the lines between each area, or area lines, can be used for lots of purposes, and I've suggested one or two.

Please don't trade this!

I just ran across traditional patterns via bsTL's, and included bsTL's that run through significant pivots. Logarithmic cycles (which at first glance seem to measure failed cup-and-handles, and so is a reasonably flexible idea) don't work too well in this area, at least on the 1'/5' (15'-4H, you can find a balance line for anything), so I had to find something.
Note that I erased a slew of bsTL's to get to this picture, so it's very after-the-fact. I was driving at capturing the current (1621EST) picture.

This is what I got:



This is, poorly explained, how I got it:














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aftermath:
A logarithmic cycle did hit, and the price-time line danced between the lower double lines and the l.c.'s dot's horizontals. 1,2,3,4,5
A break from the channel/flag also happened, with the l.c., it seems here.

Hi, this is yet another try at a line patterns type of chart study. I went ahead and described everything from scratch, rather than depend on former posts. Charts will be forthcoming, if this idea works.

When I considered doing this, I finally arrived that absolute size is relative and relative size is absolute.
The former means using modifier terms that describe differences from two or more copies of the same standard form, such as imbalance of, major and minor rendition in the same area, deviation to create a different area from a standard one that may divide into a major and minor rendition, and so on.
The latter means using absolute terms that describe different standard forms that have established differences and are used in the same general area.
The former is more right-brain and needs experience with standards. The latter is more left-brain and can be, if described with proficient clarity from and experience of the describer, needs standards with experience. That experience is standardized below.


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Balance happens in various lengths. The most complex is that of patterns creating balance. So, below is areas of typical patterns described with dot density and in detail with lines that decide their projective utility.


The first area is 'loose'.
In it, anchors are few to none, and because a large area of a right angle is unexplained and thus left to any interpretation, thus 'loose'.

Trend centerlines divide a trend lengthwise in half;
drawn with other trend centerlines, are more often separate from them;
and, midline within that is to divide a trend widthwise in half.
They rapidly dominate in number and size from a right angle and other loosely gathered areas, so that trends are many and anchors or midlines few.
Pure logarithmic curves thus often happen here, primarily made of trend centerlines. One may include spread patterns to clarify direction.

The second area is a 'collection'.
Collections of about the same importance of trend centerlines and bar spread trendlines, with balance lines thrown in for good measure, define a second type of area.
Collections use a balance line the most effectively.

A balance line, or a TL which connects especially isolated points to connect the current area directly with a like area across huge chasms, forms parallel deviations the easiest.
A set of parallel deviations measure the speed of the price-time line reasonably well, making more or fewer subdivisions between the parallels for changing direction.
Balance lines are never around other balance lines; one could consider them parallel to, and thus at once anchored with and separate from, their deviations midlining from it and a close pivot's parallel line. In another sense, they anchor two separate areas that are similar, or the one-anchor type separates, with a TL from it, from the rest of the price-time line's activity. They clarify direction when spread patterns / bsTL's and trend centerlines both vie to describe direction.

One collection type is cycles of an arch with trend centerlines and then a level with a spread pattern which finishes with a dot with a balance line which pivots to a steep run.
Another is a fan, which overlaps its devices. It has a dot, some space that positions the dot with the wall, and a short wall that has some kind of symmetry to it; the trend of this shape midlines it, so that a trend centerline goes through it and other TL's draw through points on either side of the trend centerline.


The third area is 'consolidated'.
Spread patterns predominate these.

Spread patterns (sp's), or bar spread trendlines (bsTL's), combine small, average or large patterns' perfectly aligned candles within them to form TL's;
more often anchor with other or close to other bsTL's;
and, midline with the other bsTL's to form extra, derivative TL's.
They rapidly dominate in number and size from a small, busy pattern and other consolidated, dense areas, so that anchors or midlines are many and trends few. Trend centerlines are thus useful to clarify direction amongst them.
Repetitions between patterns thus often happen here, with the overall resemblance intact only some feature changed to show the progression.

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Further description, through example, of balance:

A pattern is a huge right angle ('loose');
an arch and then a horizontal line, or a 'collection';
or, a bunch of close-knit lines, and thus 'consolidated'.

A line: Devices used are TL's. TL's draw from one or two isolated dots with a balance line;
a single direction of the price-time line with a trend centerline;
and, a mesh of a bunch of different directions in a pattern or shape of the price-time line with a spread pattern or rather bsTL.

A dot, if balance depends only on this, blends in various ways with the line and the pattern concepts.
A consolidation of a pattern is an expanded dot, compared to a single TL that aligns dozens of pivots representing hundreds of bars;
a balance line uses an isolated dot showing a pattern's inner trend;
a single bar is a dot in time, one with an especially large volume making a balance line at its highest and lowest price;
a row of dozens of nearby dots (one-pip-spread bars) produce, with a TL ray between each consecutive pair of dots, a spread pattern that denotes the next large area;
and so on.

Here's another try at describing line patterns.


where to search for a TL's pivots





drawing the TL from the pivots found



NOTE: In the picture above,

the first pair is, on the left, a high-spread pattern or other such shape that makes a pivot from which a TL may be drawn that goes several places / 'anywhere',
and, on the right, a line and its perpendicular right after it or a drawn-in midline from it.

The second pair is, respectively, the logarithmic cycle, with line and dot, price dropping straight down from the dot,
and the stacked condensed-and-logr areas approach.

The third pair is balance line on the left
and small spread pattern on the right.

The fourth is a centering area narrowing into an anchor, first,
and next, an area that is only centered.



intersection of the price-time line with a TL or two

man it's a rookie discussion, istn it?

btw what about those spirals? could you explain in details.?

Thank you for visiting.

The 'spirals', which I presume to mean the wavy scrawls in my last post's pictures, are waves you see on any chart; I typically think of the 1' TF gbp/usd (haven't worked with eu in a while) candles (an overlay indicator that's adjustable to any width, unlike MT4's). The drawn waves are each proportioned to represent how a TL may be formed from the wave's pivots.

I'm still a rookie at heart, and the drawings in my last post are an attempt to understand how to draw TL's. The first and third pictures are fairly self-explanatory, they being what portion of the chart to study and then how TL's intersect the price-time line.

The second picture is probably too complex for the rookie section; it draws examples of several TL drawing methods that I described in more or less detail in other threads. What's more, the second picture describes methods that I'm constantly looking to replace, for a better way to draw TL's.
You could view the second picture as suggestions on where to look if you're into drawing TL's, even if you don't read on how I used the patterns shown.

Simple auto-running risk management games:
http://www.millisecond.com/download/...s/default.aspx

A beginner may find this method helpful.

Took a break from developing my innovative TL's, and listened to the person referred to in this post.

What I developed was a 1 exponential/weighted MA unconsciously read for its hitting the middle of 1' candles; meanwhile, I consciously read customcandle6 indicator (thicker toggleregandhacandleshiftv3 candles needed), with its overlay candles at 5', for s/r levels.

I did this two ways: Got into the chart's reactions, that is, candle-read with established s/r levels (/ TL's, to add later I suppose). Second, went ahead with the chart's actions, that is, TBA s/r / TL hi/lo projecting candles.
The former was safe yet fast, and the latter risky yet slow.

Made 14% in four trades on demo, three of the four in 20' total. Not bad.

The s/r's were groups of 5' candles that were very short and numerous, initiating each s/r level.
I truncated the s/r level at the trade I made it, when I made the s/r level with the first method and its established s/r levels; and, I dashed and left a ray any s/r levels (one shown) made with the second method and its TBA ('to be announced', that is, prospective) s/r levels.
Pictures:



This approach kinda sets the purpose of my TL's for bigger and news trades. One can have the method above deal separately with the entry and exit, which drops the energy one expends reading candles so fast; as well, it may help a little with candles' TL contacts for progression along any one TL.)

Alone, it's highly dangerous, as no physical SL is possible, it's basically scalping and thus most broke rs prohibit it, and it needs an absolutely solid -- and not just beginner's luck, which I had (me being a rookie, if not a beginner) -- psychology to go with reading candles and making temporary lines this speedily.

Using chart symbols for why an area turns:

Price action can get bogged down with all its possible interpretations.
Some prefer to simplify through using higher time frames and carefully reading fewer bars there. I like to get into the complexities of lower TF's and know exactly why something happens.
The difficulty with the latter approach is information overload. A brain may only make fast decisions based on few criteria. All the possible combinations that even highlighting a section of price action gives the viewer is often too much.
Easier is it to summarize the reason for an area's turn with a simple shape drawn close to the price-time line.

Toward a natural drawing of trendlines:

Converse to the last idea of simplifying into a symbol why an entire chart area's price action turns, trendlines tend to be overly symbolic -- I mean, one may overfocus on trading as if the price-time line will obey a TL because it's there.
A trendline represents the pressure or settledness of the line's initial pattern. There being infinite patterns, the mind may shut down on any except the most prominent one showing -- the TL that's already been drawn.
My idea is to draw a connected series of TL's for an especially relevant line pattern. In time, one erases or shortens TL's that didn't do well into line segments. (When I say 'TL's', I usually am referring to TL rays.) Often, TL's will simply go into a space the price-time line never occupies.
Different series each resemble some category of shape, such as a logarithmic curve, a midline or box, and so one. Identifying the shape may help if the line pattern is also the turn for the chart area (see last post), and may speed drawing of its TL's. Mostly, doing so distracts from the purpose of decentralizing the trader's focus from any one TL, no matter how useful it is to the price-time line which converges with it for a good while.
Different series of TL's also may lead to new combinations of TL's between their line patterns.
Finally, isolating and emphasizing one line pattern over others may lead to confusion. The idea is to capture the flow of the price-time line and project where it goes next. This is done in the following range:
A natural series of TL's in one line pattern, a mixed bag of TL's in a line pattern that turns in odd directions, or TL's between several line patterns bringing one to draw some that interact with all of the line patterns.
In the interest of keeping it simple, letting only one TL or a channel emerge from the various TL's that represent one or more line patterns, allows one to balance following the true price-time line's action with reducing the effort of doing so.



another:





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The second and on pictures above are too messy and don't efficiently represent the area. The shapes and TL's from the line patterns are too relative to each other; that is, what the shapes represent are only subtly so, and the TL's are too pedestrian.

Ranging the ideas of multiple line segments per valuable line pattern and symbolic shapes to represent a big chunk of price-time line area, is still a good approach, because it gives definite meaning to using line patterns.

Sometimes demos here look useful, whatever they mean to others. Check 'derived polygons' and 'Catacaustics Generated by a Point Source' to study temporary patterns,
and Stock Price Simulation Using Stable Random Variables', and 'The Law of the Iterated Logarithm in Probability Theory' for price-time line flow.

Hi,
here's a new way to draw TL's from patterns.

It involves a circle (or rather, ellipse) and an extra shape that is or helps the circle be perfectly balanced.

Every time, it looks different, besides this.

The lines seem to last a lot longer than other lines, and the idea has been consistent over seven tries.



Okay, here are the examples.

template (mbtrading.com (Pacific time))
-- needs MissPip's heiken ashi - regular candles indicator.

hi mr ha pattern i would like to chat with you sometime and share our ideas on the market.

Welcome, Mr. the redlion, thanks for the interest. I would like the same, if it's through posts on ff.
A warning about me, though: I tend to post ideas (and thus drop ideas, such as volatility, at least for a long while before I have anything to challenge it again) rather than longterm-proven concepts; I figure I give about all the evidence I have for their existence, and hope someone else can find any use in them. That's the caveat to constant improvement of my technical skills.


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That said,
here's a somewhat beginner's idea about how to separate direction amongst patterns:



the results, used to interpret the above after the fact (seems commonsensical to me, even so):





Lots of traders don't realize how epigrammatically predictive a pattern set can be; thus, the example.

pattern recognition is not my forte, so i believe you can be a great source of information.

my style of trading is rooted on fundamental analysis and technical analysis, with the philosophy that price can be measured and risks can be minimized but price itself cannot be predicted.

we could post here if you want, i live in the US and i think you too, we could chat through an IM or skype, or whatever is best for you. let me know, i think we can at least both learn something from eachother

here is my take on candles sticks and the information i obtain from them

i believe that time frames are actually a fabrication of our analytic tools, when the euro hits 1.4500 that will be the quote, time frame is irrelevant as it will be 1.4500 in the tick as in the month. with that said, i find candle sticks very useful for the same reason that they measure strength and conviction (meaning what is the consensus of the market participants) within a time span.

the open price of a candle stick is the reference point, a close above is buying pressure, a close below is selling pressure.
the high and low give you a range, another measure of volatility, but can give you an idea of what is a probable expectation of market capacity. (for example an average trading range of 100 pip candles, does nothing to predict FUTURE direction, but it can indicate how many pips is feasible to extract from the market, and indicate an exhaustion point)

measuring close-open price of the candle give you a displacement, or a vector of the shortest distance between starting and ending point, which you can use for a visual read of velocity, displacement/time.

and as we see the market taking off in either direction, candles can help in assessing the acceleration from a price by increase in velocity, and deceleration as the candles get smaller and prevalence in order flow begins to change.

i dont trade with price targets ie TP or SL, i measure the momentum in a leg and determine my risk as momentum decreases and the correction is due to follow.

observing the market i have come to the conclusion that the behavior is predictable but the price is not.
acceleration, loss of momentum, correction, are the three stages that price ALWAYS goes through, the strength in each stage signals the possible next move.

as far as the formations, simple or compound, i look for clues on the exhaustion/distribution/consolidation of a move, as well as testing and retesting of lower or higher price levels.

in essence the left side of the chart has a lot of information that can be measured but even with out it one should be able to trade on the NEW information happening in front of us


volatility is an important read for me, because it helps in finding good entry/exit opportunities as well as giving you an idea areas of danger and safety in the terrain, which you can use to calculate your risk. It also serves the purpose of objectively letting you know when you are definitely trading against the main trend.

i trade measuring the market in 5 minute increments but positioning myself for moves that take days or weeks to complete.