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PebbleTrader
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Postby PebbleTrader » Tue Jul 24, 2012 5:42 pm

"I agree with what is being discussed here 100%, but, what i cant get my head around (as of yet) is HOW do you build a trading model that uses current price quote as a reference point...it goes up we buy...it goes down we sell...but at which points above/below such ref.point? Im wondering if standard deviations could come into play here."

Feel free to suggest new ideas...

I'm sharing this as it is building upon what has been discussed on Kreslik over the past many years. I'm not going to repeat things that have been discussed over and over again. I know it's painful but there's a lot of threads to go through...
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Postby PebbleTrader » Tue Jul 24, 2012 5:46 pm

"I think by noting subjectivity of speeds, you are saying that the TF is irrelevant because it is an arbitrary compression of data?"

Yes, that's exactly what I was getting at further back. We have to be careful when comparing these things because all is not the same...
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Postby deltaskelta » Tue Jul 24, 2012 6:24 pm

PebbleTrader wrote:"But what if we could do things like "Time Surgery"...where we surgically remove sections of time so that it can better help us SEE the path forward."

"You mean like remove dead spots in time where nothing happens? explain further please."

Yes, example of time surgery:

Image


I cannot figure out how those purple things are made, other than being composed of 2 candles, how are they constructed?

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Postby PebbleTrader » Tue Jul 24, 2012 9:40 pm

"I cannot figure out how those purple things are made, other than being composed of 2 candles, how are they constructed?"

http://insanityindustries.net/viewtopic.php?f=19&t=413

There are other ways to do it, that is just one example
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Postby deltaskelta » Tue Jul 24, 2012 10:03 pm

PebbleTrader wrote:"I cannot figure out how those purple things are made, other than being composed of 2 candles, how are they constructed?"

http://insanityindustries.net/viewtopic.php?f=19&t=413

There are other ways to do it, that is just one example


ok, I now understand the one on the link you posted, but I still do not get the one you posted, why does it deviate away from the chart in certain spots and then regroup later? is it because it is cancelling out certain pieces of time, that way when it starts up again it may be in a different spot?

and if that is the case, which pieces is it ignoring?

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Postby deltaskelta » Tue Jul 24, 2012 10:07 pm

PT, do you have any recommendations of threads to read that go over similar topics efficiently?

Its hard to tell which ones to read, and I'd prefer to keep it as efficient as possible to save time.

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Postby PebbleTrader » Tue Jul 24, 2012 10:31 pm

"why does it deviate away from the chart in certain spots and then regroup later?"

It deviates because you are looking further back in time with the purple. Try to find the same points in time between the two and it should make sense.
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Postby deltaskelta » Tue Jul 24, 2012 11:04 pm

ok, I think I need a little nudge here to dislodge my brain, I cannot find out how they are formulated. I have tried many different ways

First: Drawing some swings and connecting them

Image

Second : Filling in the candles to see if anything pops out

Image

Third: I was finally able to connect them to an open of a regular candle, but I can still not figure out how the time is offset

Image

I just need a little help to see how they are offset, and then I'll be able to think about what it means.

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Postby PebbleTrader » Wed Jul 25, 2012 12:37 am

It is much simpler than what you think, as for how it's drawn, it's described in the link I posted earlier, as for how the two relate, see my markup:


The right most circle is associated with purple, the candles that are able to see further back in time.

Image
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Postby speed26 » Wed Jul 25, 2012 11:26 am

"Feel free to suggest new ideas..."

Sure, but i dont want to derail the OP's thread.
I'll keep it short and sweet and then let you guys decide if yes or no to more :)

Whole FX market = total sum of all money (100%).

This 'total sum of money' is segmented and invested into different currencies. So not ALL money will be in ONE currency by itself, it will be a %age of total money:

FX market = 100% of all money.

Euro = x% changing continually.
USD = x% changing continually.
CAD = ...you guys get the idea.

It is essentially the 'relative' strength of each individual currency that when paired up (for example you trade GBP/USD) you automatically know how much money (%) is moving each currency. This should indicate:

1) The strength of one currency VS. the other.
2) Which currency is more likely to continue in its intended direction.
3) The potential force behind the currency.
4) Momentum.

Of course this type of thing is already invented (currency strength meters) but what i notice, just like all other conventional indicators, they show information in a lagged manner because...:

1) They extract information via TF closing prices.
2) TF's (as discussed) dont truly exist, they package information.

So the key to make this less-lagging is to use the ticks.

If this could be done, in T-H-E-O-R-Y what it could show is:

1) Which currency is leading (alpha) and which currency is following (beta).
2) Could indicate moments which are more prone to produce fake moves.
3) Could indicate which currency has less risk for us to trade.
4) The true momentum behind the currency (since it dissects total money in it).

This then coupled with a 'system' (whichever it is) should produce better outcomes:

1) Be it with less losses (avoids fakes with better accuracy).
2) Be it with bigger gains (as it indicates the 'true' momo behind the individual currency being traded.
3) Tighter stops, since most moves should (in theory!) move away relatively fast from out ref. point (line in sand).

Any thoughts? Like i said, dont want to derail OP's thread :)

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