Postby unreconciled » Sun Dec 04, 2011 7:52 pm
Hi TRO,
As nobody else seems to want to share their homework... ;)
According to the frequency distribution for W1 candle wicks, as far as I understand, it shows
that after price retracing 10 - 19p. off the weakly LOWEST low (for the green rats) there is 50%
chance of it going up to 70p.+ and as high as 90% chance of 30p.+.
According to the charts with highest and lowest open prices that you have posted, all I see is:
PRICE WILL MOVE 'X' AMOUNT OF PIPS FROM HIGHEST HIGH TO LOWEST LOW,
AND FROM LOWEST LOW TO HIGHEST HIGH WITHIN 'Y' AMOUNT OF TIME.
(...what is by the way what 'MightyOne' always says).
Is importance of holding to winning trades what you want us to see?
Then still, I do not quite get how to profit from this :|
Or is it visual presentation of:
"Now, 2 patterns of market behavior happen on a regular basis:
1) the price breaks to new high's (or low's)
2) the price reverses from new high's (or low's)
They happen regardless of time frame (with the obvious limitations explained above)
They are phenomena that can be exploited without the fear if found out by others, that they might cease to exist." - H. Rearden
Well, what is common for all those charts is that the price closed lower than the lowest low
and higher than highest high NEVER after.
That may solve my problems with not being able to stay +10p. in profit for the day, giving me the exact,
higher probability zone to buy, and prevent me from overtrading
(MAINLY IN THE RED RAT TIMES, WHICH I PERCIEVED AS A 'TREND' FOLLOWING MUST).
I just do not know why have I refused to see this before.
WOW! I am really kind of like -> :O
I am grateful for making me rethink what I claimed to have known.
I will be pleased to see any comments on the above.
Have a nice day!