Funny Looking Rectangles & Useless Drivel

I would have hoped that you did have your own system. The question was, did you also have a link to show that B2i was nothing new and that someone else has publicly reported or published its tenets elsewhere, if not on this site. That's my sole question, here. Recall, I made the claim that B2i was different and not currently in the public domain. That's all. I'm very interested anytime someone claims that they have seen the concepts I share in public before.

In fact, I actually believe that people do work in parallel on some concepts but they never talk about it and therefore, no one ever knows! That's why I am so interested in knowing whether or not the same holds true for my work. So, if you come across anything that you think is either just like B2i or that approximates B2i in concept, please do let me know for posterity sake. That is something I really do care about. Since I did not see a link in your post, I will have to interpret that as your not having a source for comparison purposes.


It is a great default trading method, no doubt. However, trend trading will never be optimized for maximum profit because you do not attempt to discover through calculation when the trend is in a transitory phase and what type or kind of transit the market is making. That step requires advanced analytics and merely looking at a chart won't always give you such insight.

So, yes. Indeed, the trend is your friend - as long as it remains in Market Phase 1 or 5 (read early in this thread for explanation). Market Phases 2, 3 and 4, including the inverse of Market Phases of 2 and 4, is statistically where the market spends more than 70% - 80% of its time (currency markets undergoing normative market behavior). Therefore, as a Trader, one is serious about optimizing their profit potential, one has to become familiar with all Market Phases and learn how to adapt their trading to match the current phase. There really is no other way to optimizing profits. Otherwise, you are either sitting on the sidelines waiting for Market Phases 1 and 5 to arrive, or you are getting whipsawed and suffering increasing losses as the market transforms between Phases 2 through 3 and their associated inverse phases.

This should be fundamental knowledge for all Traders to have - basic Market Phase understanding is essentially to any consistent trade plan.


This is one of those Urban Legend Myths that has been propagated and repeated in numerous ways such as through books, seminars, lectures, video tape series, boot camps, etc. There are a lot of people out there saying to you that trading should really be simple. I agree, but not for the same reasons, nor do I arrive at that statement in the same manner.

Trading should be simple. But, not before it gets a whole lot more complex (as your learning curve increases), then understood, then refined and optimized into something that is relatively simplistic. Pushing your trading to a point of maximum optimization while being simple, has never been easy. If it were, everybody and their grandmother would be a successful Trader. And, while everybody and their grandmother is a Trader, not everybody and their grandmother is a consistently successful one.

Trading can become simple, but it takes a lot of diligent work to make it so. Competitive (Pit) Floor Trading is quite different from stand-alone day trading environments and for a number of good reasons. There are no Competitive (Pit) Floor Traders in Retail Forex, or on Interbank. Those decisions are made via algorithms and/or individual Trader input while sitting at a trading platform of one kind or another. Increasingly, trading firms with dedicated Trading Units that are non-competitive (non-pit environment), are trading alongside individuals sitting behind a computers such as you and me. The trading environments have changed over the years and things are not what they used to be. When you read a book on trading, it is important to understand the era in which the author is writing about when they give such examples.

I would strongly suggest this movie:

Floored | A Look Inside the Chicago Merc and How Trading has Evolved


This is a pretty educational movie and it takes you right up to the New Era of Trading, the Individual Day Trading Era - a new day in my eyes.


He was definitely not smoking something. However, that was then, this is now. Those same Doji Candles are being algorithmically filtered in ways that this old Floor Trader could never hope to fully understand. When you get to the end of the movie "Floored," that will become much clearer to you in the way that the old timers struggled to make the shift into Computer Based Day Trading.

This is a different era.

Floored, btw, is a really kick butt movie and HIGHLY recommended for all Traders, in my opinion. You should really understand what's going on in this movie on a number of different levels - both the business side of trading and the personal side as well. The toll that trading has taken on the lives of some people has been tremendous over the years and you should know your limits, as well as WHY you are in the market in the first place.

One of the best movies I've ever seen on trading, if not THE best.

WATCH this movie (for those that have not already viewed it)! These guys talked about what they did as Gambling because that's all they knew. That's all they could see. The current generation Day Trader, has so many more tools at their disposal that the difference is staggering. These guys worked in a very kinesthetic realm of trading. Something we at home-office Day Traders know nothing about. Yet, by comparison, they are more handicapped then we are, given the lack of tools they had to work with.

Amazing.

Market is always the same.... never been changed.. even for hundreds years...

Anyway, trading is a personal business... you do your things and I do mine.
No need for further debate.

Case closed.

The market is in a constant state of flux and if really knew what you were talking about, you'd be keeping up with those changes instead of sitting on the sidelines (which is where you have to be) trading 30% of the market potential. That's how much the market has changed. The old timers in the video were trying to tell you that, but you probably know more than they do, even though they've been around trading the markets since before you were born, most likely.

If you don't like the answers given, the stay out of the thread. The next time you post something, make sure it contains a link to the source showing B2i to be something you've seen before, as your post implies. Otherwise, if you are not prepared to back-up what you claim, then don't make the claim - else you look silly when you do.

This was never a "debate." In order to have a debate, you need to have a standing premise that is factual and the ability to articulate said premise. You had neither.

Case in point.

OS1 Transformation taking place:

http://i60.tinypic.com/2ptxu20.jpg

Earlier in the thread I mentioned what typically takes place as the market turns the corner in dominant directional bias and related that price behavior to the way price interacted with the Os1 stabilizer. The left highlight in blue shows what happens to OS1 when strong news is the cause of the transformation and the right highlight in blue shows a normal OS1 transform taking place. My earlier notes on the subject explain what to expect in terms of price behavior and how price first Intersect the green line first, strike the red line second and then pull back and Mirror the trajectory of the green line before making the final crossing and converting dominant directional bias.

This is THE test for any good long range directional bias indicator. The data being output from that indicator should show smooth transformations from Market Phase 1 to Market Phase 5, or Market Phase 5 to Market Phase 1, with all of the proper sequencing in place for Market Phases 2-3, or 3-2, depending on the state of the long range indicator at the start of the transform.

When you see such transformations, you are looking at a fairly orderly market shift. Not all dominant directional bias market transformations are this smooth, but the really good ones are fairly noticeable with the right long range indicator. Remember, OS1 is not predictive. It is merely showing me the state of the market during a directionally bias transformation - essentially telling me how orderly the process is between shifting from sellers to buyers, in this case. The market can easily do what it wants - OS1 simply gives me good clues about the "stability" (that's why it is called a Stabilizer) of any Market Phase 1-5.

Post Number 137 http://www.forexfactory.com/showthre...36#post7638736 talks about price behavior during an OS1 transformation.

Intersection between Standard Fall Line coupled to Projection Fan 61.8. Intersection Time showing as during the 22:00 hr (9/9/2014). Another small glimpse at Version 2.0.

http://i58.tinypic.com/23lfq82.jpg

Keep an eye on adverse news for either EUR or JPY. That's always the wild card. If she stays nominal it should be rather routine. Else, given the size of the structure being three days in width with a Fall Line Intersection that was through the previous weekend, the timing of the completion could be extended beyond the Fall Line & Projection Fan Intersection.

Current 56+ pips expecting 100+ on this just this structure. This is NOT a system trade. I am simply following B2i in manual mode for demonstration purposes.

Good night.

Day 3 of the D3 B2i shows flight EURJPY coming in slightly ahead of schedule. Showing respect for the Projected Fan of 61.8, at least this B2i structure behaved normally as expected.

Associated problems:

- Long range stabilizer OS1 has not yet fully transformed though price has committed

That is really the only problem I see with this particular structure.

http://i58.tinypic.com/2m29z12.jpg
http://i57.tinypic.com/9tigkj.jpg

Though this was just another B2i structure being demonstrated, the real lesson here was the OS1 Transformation. It was slow, methodical and very much stabilized all the way to the Yummy target.

While "trend" Traders were sitting on the sidelines wondering "if and when," the leading edge predictive Trader was in the market benefiting from good research. Yet, another reason why trend trading will never be as optimized a way to generate revenues as a good predictive model.

Without structure, such a move looks rather improbable on its face:

http://i57.tinypic.com/16l1d1.jpg

The trend is your friend, make no mistake about it. But, when she decides to put a knife in your back, you need a way to detect her change of attitude, so you can respond appropriately.

Final lesson and then I'm done in this thread.

http://i61.tinypic.com/2j620lu.jpg

Figure out why the Hybrid B2i that uses a custom time frame needs to sit directly between two standard structures that use a standard D1 B2i time frame and you will essentially have Version 2.0 of the indicator. Hint: Synergy and Confluence is very important.

Done and done. Yummy.

Does it need to sit between two standard structures, or does is it simply the case most of the time?

I can see why. Thank you =)

LG, remember the so called 'problem' we talked about? My older work does explore candle to candle structure but could not find a way to figure how to link them up. The problem that 'the gap' between time based candles that breaks continuity of price?

Major move of day -> Transition -> Major move of next day -> Transition. What I failed to map out correctly with my older models is the transitional part. Deal with the transition part correctly, the major move of the day is already yours.

Remember this? http://www.forexfactory.com/showthre...65#post6320065
*gets back to work*

I'd like to think that at the foundation of anything seemingly complex, lies simplicity. With that in mind, I appreciate the elegance of your "funny little rectangles." And, more so, your patience, and willingness to share your hard work. Kudos to you, Sir.

Here is another Hybrid B2i that I came up with based upon this posting, again very interesting stuff. The idea was to keep all boxes interconnected by the last B2i box, high or low.

Forgot to post this. I did not trade them all but I ran a few in the background while posting. Whenever posting trades, I am a firm believer in showing the results you got from the trades you actually took - demo account or not - show your work.

http://i61.tinypic.com/2uqkx12.jpg

http://i58.tinypic.com/b9jalv.jpg
http://i59.tinypic.com/30de8ph.jpg


Until next time.

I did not forget this one. I had to wait eight (8) days for the trade to be completed. So, you can add another 126 pips to the totals for another $1,260 trade on 1 lot at PPV = $10.00 for 10/10 trades or 100%.

http://i58.tinypic.com/senh3b.jpg


So, much for "markets have on predictable structure." Original chart posted in my other thread here (not in this thread): http://www.forexfactory.com/showthre...79#post7734079

http://i57.tinypic.com/r0cvap.jpg

Sorry, guys. I just could not keep up with private messages and posting at the same time - so I just don't do PMs at all anymore. Again, my apologies. Ok, that should be it until next year. I think I've got everything checked in this time.

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