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lazygeorge
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Postby lazygeorge » Mon Feb 11, 2013 8:50 pm

trueblueTEX wrote:
MightyOne wrote:
PebbleTrader wrote:"-I no longer consider closing prices (to avoid shifts)."

What do you mean?

I use the CLOSE for these reasons:

- To better determine which way price is moving

- If I was using a line chart, I'd use the CLOSE

- To see important wicks (after they occur)

- For bumping my step chart up or down if a CLOSE takes out an extreme


It is easier to make plans based on relatively stable price ( price spends most of its time in a range where the midpoint remains fixed )
than it is to make plans based on a random closing price.

Instead of a close higher, I look to see if the midpoint is pulled higher.
Can It change course and move lower? Yes, but the low must be taken out in the current bar and move to a known price to drag it lower.

The midpoint is like a 'dynamic open' which is temporarily the same as the closing price.

The problem with closing prices is shifts (you can ignore them but they are still there):

If I said that price closed higher today then you might say 'based on what part of the world'
If I made this simple and divided the day into three equal parts then I would see three different charts (the interpretation of the three 'versions' of the daily chart says a lot more than a single random close).


Is that what the sma is for?


TEX,

Its a 1 period simple applied to median price(HL/2)

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aliassmith
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Postby aliassmith » Mon Feb 11, 2013 9:39 pm

aliassmith wrote:Daily


I can't win them all i suppose :(
Trade Your Way as Long as It Makes Money!

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PebbleTrader
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Postby PebbleTrader » Mon Feb 11, 2013 9:45 pm

"It is easier to make plans based on relatively stable price ( price spends most of its time in a range where the midpoint remains fixed )
than it is to make plans based on a random closing price."

I use the CLOSE as the "settled upon" price of the market or the "stable price". I realize this is far from perfect, but the Hi/Lo is most of the time the "unstable" price and price doesn't hang out at those levels for as long as it does somewhere in between those extremes. I agree the CLOSE is nothing but a random point in time, in a sense (because it's consistent), but it's the best thing we have besides doing some stats but than there would be problems with not having access to those stats for the chart history.

Here is a thought because I'm not sure that the midpoint alone is the best way to gauge a "stable price":

1.) Find the Midpoint ((Hi + Lo) / 2)

2.) Find the Midpoint of the CLOSE and MIDPOINT ((Midpoint + Close) / 2)

3.) The line chart would be the midpoint of the CLOSE and MIDPOINT (of extremes)

That way your Midpoint is biased towards the direction of the CLOSE
Last edited by PebbleTrader on Mon Feb 11, 2013 9:48 pm, edited 2 times in total.
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trueblueTEX
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Postby trueblueTEX » Mon Feb 11, 2013 9:45 pm

aliassmith wrote:
aliassmith wrote:Daily


I can't win them all i suppose :(


I was thinking that your previous post looked countertrend:



It looks like you posted the same chart in both postings, so I don't see exactly where it went against you.

I say all of this from the perspective of being a noob who is trying to figure out what everybody else is doing :-)

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TygerKrane
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Postby TygerKrane » Tue Feb 12, 2013 12:40 am

aliassmith wrote:
aliassmith wrote:Daily


I can't win them all i suppose :(

Alias,
When you chose your entry position, was it a shot-in-the-dark kind of thing based on price returning to the origin of the green-circled D1 candle, or was there something deeper behind your decision? Or were you just hoping for a lucky position to start managing your SPACE & POSITION from?

Thanks

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TygerKrane
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Postby TygerKrane » Tue Feb 12, 2013 12:46 am

PebbleTrader wrote:"It is easier to make plans based on relatively stable price ( price spends most of its time in a range where the midpoint remains fixed )
than it is to make plans based on a random closing price."

I use the CLOSE as the "settled upon" price of the market or the "stable price". I realize this is far from perfect, but the Hi/Lo is most of the time the "unstable" price and price doesn't hang out at those levels for as long as it does somewhere in between those extremes. I agree the CLOSE is nothing but a random point in time, in a sense (because it's consistent), but it's the best thing we have besides doing some stats but than there would be problems with not having access to those stats for the chart history.

Here is a thought because I'm not sure that the midpoint alone is the best way to gauge a "stable price":

1.) Find the Midpoint ((Hi + Lo) / 2)

2.) Find the Midpoint of the CLOSE and MIDPOINT ((Midpoint + Close) / 2)

3.) The line chart would be the midpoint of the CLOSE and MIDPOINT (of extremes)

That way your Midpoint is biased towards the direction of the CLOSE

How about market makers are accumulating positions throughout the entirety of the "consolidation" period/range
before they make their next move to get the profit from their acquisitions.


The midpoint being their average price of accumulation.
(not jumping to MO's defense, per se, just someone's perspective that I've been reading/listening to/considering lately.)

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TygerKrane
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Postby TygerKrane » Tue Feb 12, 2013 1:10 am

trueblueTEX wrote:I was thinking that your previous post looked countertrend:



It looks like you posted the same chart in both postings, so I don't see exactly where it went against you.


This is what happened [D1 CC overlay] : (looks like alias' price feed makes Sunday an additional D1 candle >>I hate that :x << )
{His entry presumably being during the arrowed candle, based on when he posted to the forums.}



Image Image

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trueblueTEX
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Postby trueblueTEX » Tue Feb 12, 2013 1:50 am

TygerKrane wrote:
trueblueTEX wrote:I was thinking that your previous post looked countertrend:



It looks like you posted the same chart in both postings, so I don't see exactly where it went against you.


This is what happened [D1 CC overlay] : (looks like alias' price feed makes Sunday an additional D1 candle >>I hate that :x << )
{His entry presumably being during the arrowed candle, based on when he posted to the forums.}



Image Image


I think I understand what you are saying, Tyger. I was just looking at the whole long line of UP and I would have thought it safer to treat Down as just a pullback for more UP.




My buy was on the 5th. I was in down 150 pips. I don't think I would have had the balls to hold on to the buy if it were real money.

Actually, if I were following Space rules I should have liquidated some where in there and waited to buy. -- but I still understand the intricacies of Space, so I will work on that a little later ;-)

But I did believe that UP was the prevailing direction. Instead of buying when I did, I should have waited to see if a pull back was coming AGAIN like in the previous steps UP.

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trueblueTEX
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Postby trueblueTEX » Tue Feb 12, 2013 1:56 am

btw: Tyger, did you see the cropped pic of my "radar" above?

I also made one of 25 pairs of just monthly. Don't know if I will benefit from it, but at least I can stare at a bunch of pairs all at once. I think eventually, that something will jump out and slap me.

and hopefully not a wick doll :-)

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trueblueTEX
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Postby trueblueTEX » Tue Feb 12, 2013 2:06 am

Actually, if I understand Space correctly, I shouldn't have bought because I didn't really have a place to make a proper Position.

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