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Wormholes - stochastic mismatch system

  • #101
  • Nov 6, 2014 6:22am Nov 6, 2014 6:22am
Quoting Ullen
{quote} The first wormhole is already cleared as the second is made.
The wormhole EA redraw the lines, so I just mark it.
  • #102
  • Nov 6, 2014 8:49am Nov 6, 2014 8:49am
Has anyone considered the cause of these wormholes? In theory, if you platform receives tick data and converts it to bars on various timeframes, the stochastics should always align if the settings is in the correct ratio. Stochastics is simply where the price is relative to the high and low of a certain period. If your stochastic ratio between the timeframes is the same as the ratio between the timeframes, the stochastics should always match. Any ideas?
  • #103
  • Nov 6, 2014 12:01pm Nov 6, 2014 12:01pm
Nice day to trade wormholes!

This is the percentage of levels cleared today, and there are still oppurtunities.

Watch out for 1.24250
Attached Image
Not about how much you win, but how much you loose
  • #104
  • Nov 6, 2014 12:31pm Nov 6, 2014 12:31pm
Quoting Wanderer272
Has anyone considered the cause of these wormholes? In theory, if you platform receives tick data and converts it to bars on various timeframes, the stochastics should always align if the settings is in the correct ratio. Stochastics is simply where the price is relative to the high and low of a certain period. If your stochastic ratio between the timeframes is the same as the ratio between the timeframes, the stochastics should always match. Any ideas?
Does one M5 candle equal five M1 candles? I mean, all the time?
Even if you fall on your face, you're still moving forward.
  • #105
  • Nov 6, 2014 1:14pm Nov 6, 2014 1:14pm
Quoting Ralome
{quote} Does one M5 candle equal five M1 candles? I mean, all the time?
It should. If not, broker is f*cking with the price feed? What else could it be?
  • #106
  • Nov 6, 2014 1:18pm Nov 6, 2014 1:18pm
Quoting Anusragger
{quote} It should. If not, broker is f*cking with the price feed? What else could it be?
Hmm, just realized that also couldn't be the cause of stoch difference. Because the feed is just a price feed which is shown as the chosen timeframe on the platform. The more I think about it the more I think it's not possible to have a stoch difference. But their there.....
  • #107
  • Nov 6, 2014 1:42pm Nov 6, 2014 1:42pm
Quoting Anusragger
{quote} Hmm, just realized that also couldn't be the cause of stoch difference. Because the feed is just a price feed which is shown as the chosen timeframe on the platform. The more I think about it the more I think it's not possible to have a stoch difference. But their there.....
Do you think that price is a perfect sequence of numbers?
Take this example:
1.2425
1.2426
1.2427
1.2428
Or by math:
pip "d" 0.0001
previous price "p"
next price "n"

Do you think this always true?
n = p + d
where next price is higher than previous.

Now take this example:
1.2425
1.2426
1.2427
1.2429

There is not always the same difference from one price to another.
There are gaps in price and you can see them in a different way from timeframe to timeframe.
You need to understand how is made a candle.

Alex
  • #108
  • Nov 6, 2014 1:42pm Nov 6, 2014 1:42pm
Quoting Anusragger
{quote} Hmm, just realized that also couldn't be the cause of stoch difference. Because the feed is just a price feed which is shown as the chosen timeframe on the platform. The more I think about it the more I think it's not possible to have a stoch difference. But their there.....
It has nothing to do with brokers or feeds. And it's totally possible, it has a simple mathematical reason
Even if you fall on your face, you're still moving forward.
  • #109
  • Nov 6, 2014 1:44pm Nov 6, 2014 1:44pm
Quoting ksofty
It isn't actually a wormhole...
Of course it isn't. That's just a name we are using for it here.
Open to new approaches.
  • #110
  • Nov 6, 2014 2:05pm Nov 6, 2014 2:05pm
I think this works...don't you?

https://dl.dropboxusercontent.com/u/...2020.55.53.png


The above translated to just over 30% (trading just a few hours today).


Regards,

Ty
My job: I speculate and manage risk.
  • #111
  • Nov 6, 2014 2:28pm Nov 6, 2014 2:28pm
Quoting alexx90
{quote} Do you think that price is a perfect sequence of numbers? Take this example: 1.2425 1.2426 1.2427 1.2428 Or by math: pip "d" 0.0001 previous price "p" next price "n" Do you think this always true? n = p + d where next price is higher than previous. Now take this example: 1.2425 1.2426 1.2427 1.2429 There is not always the same difference from one price to another. There are gaps in price and you can see them in a different way from timeframe to timeframe. You need to understand how is made a candle. Alex
Gaps ey, thought about those sneaky bastards. But can you get different stoch readings from different tf's from them?
  • #112
  • Nov 6, 2014 2:31pm Nov 6, 2014 2:31pm
Quoting Ralome
{quote} It has nothing to do with brokers or feeds. And it's totally possible, it has a simple mathematical reason
If you could/would: please enlighten me.
  • #113
  • Nov 6, 2014 2:48pm Nov 6, 2014 2:48pm
Quoting Anusragger
{quote} If you could/would: please enlighten me.
I wouldn't like to give more hints other than referring back to my question above
Even if you fall on your face, you're still moving forward.
  • #114
  • Nov 6, 2014 3:51pm Nov 6, 2014 3:51pm
Some interesting posts these last couple of pages. I think I will be learning a lot. Thank you!
Open to new approaches.
  • #115
  • Nov 6, 2014 4:06pm Nov 6, 2014 4:06pm
Quoting TyLamai
I think this works...don't you? {image} The above translated to just over 30% (trading just a few hours today). Regards, Ty
Post more details about your trading please.
  • #116
  • Nov 6, 2014 4:15pm Nov 6, 2014 4:15pm
Hi all,

just to cut down on the secrecy a bit, I'd like to explain my understanding of the stoch difference indicator/ea. It appears that some people do not understand the indicator they're betting their money on, which is NOT a good idea. Trading is sufficiently difficult by itself, we don't need to turn these forums into IQ tests.

Imagine you have A) stochastic with the period 10 on the M30 timeframe and B) stochastic with the period 5 on the H1 timeframe.
Those two are "similar", i.e. the two will always be equivalent at the close of the higher TF candle, since the period covered by both stochastic oscillators will be exactly the same.

To illustrate:

- - - - - - - - - - 10 candles at the lower TF
--- --- --- --- --- 5 candles at the higher TF


Please note that the two can show a different readout when the higher-TF candle is not about to close. What can happen in this example is that almost 10 lower-TF periods ago there was, say a maximum M and it turns out that the higher TF candle will only close in 30 minutes.


M____M'
- - - - - - - - - - 10 candles at the lower TF takes M into account so the max is M (>M')
__--- --- --- --- - 5 candles at the higher TF does not take M into account so the max is M'

(I use underscore _ instead of blanks/spaces, because the formatting doesn't turn out right with spaces)

The two stoch oscillators will be different because the

A) Stoch(30M, period 10)=(current_price-minimum)/(M-minimum), where, again M is the maximum within the last 10 candles which is time-wise last ~5 h (~10*30).
B) Stoch(1H, period 5) =(current_price-minimum)/(M'-minimum), where M' is the maximum within the last 5 candles, which is time-wise last ~4.5 h. The higher maximum M has left the time window at the higher TF. When the higher TF candle closes in 30 minutes, the M will leave also the lower TF window so both maxima will be M', and the stoch values will agree again.


Cheers,
k
  • #117
  • Nov 6, 2014 4:26pm Nov 6, 2014 4:26pm
Quoting kprsa
Hi all, just to cut down on the secrecy a bit, I'd like to explain my understanding of the stoch difference indicator/ea. It appears that some people do not understand the indicator they're betting their money on, which is NOT a good idea. Trading is sufficiently difficult by itself, we don't need to turn these forums into IQ tests. Imagine you have A) stochastic with the period 10 on the M30 timeframe and B) stochastic with the period 5 on the H1 timeframe. Those two are "similar", i.e. the two will always be equivalent at the close of...
Okay, so now we know there's a "simple" explanation for the difference. Next qestion would be why does price want to gravitate back to this point?
  • #118
  • Nov 6, 2014 5:07pm Nov 6, 2014 5:07pm
Quoting Anusragger
{quote} Okay, so now we know there's a "simple" explanation for the difference. Next qestion would be why does price want to gravitate back to this point?
My opinion: If you are observing a stoch difference on a current bar, this method will ensure that the current point is neither a minimum nor a maximum on a period of your stochastic (if it were, which is highly unlikely anyway, both stochastic oscillators would likely agree and be 0/100), so the current market state is most likely not a strong trend. Therefore, prices get revisited with a high probability.
As with many similar methods, be careful of expectation of a revisit in case of a strong trend/news event/etc.

k
  • #119
  • Nov 6, 2014 6:56pm Nov 6, 2014 6:56pm
Quoting kprsa
{quote} My opinion: If you are observing a stoch difference on a current bar, this method will ensure that the current point is neither a minimum nor a maximum on a period of your stochastic (if it were, which is highly unlikely anyway, both stochastic oscillators would likely agree and be 0/100), so the current market state is most likely not a strong trend. Therefore, prices get revisited with a high probability. As with many similar methods, be careful of expectation of a revisit in case of a strong trend/news event/etc. k
Great explanation
  • #120
  • Nov 7, 2014 12:32am Nov 7, 2014 12:32am
Interesting concept.
However, it seems to me you would observe the same phenomenon using moving averages - or any type of price averaging indicator (CCI, RSI ...)
You are using different calculation periods on two timeframes, therefore the "slow indicator" will eventually converge and diverge from the "fast indicator". It would be hard to believe this has any predictive value.
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