WHY DO YOU USE INDICATORS THAT...

free & uncensored discussion arena for TheRumpledOne

Moderator: moderators

User avatar
PebbleTrader
rank: 1000+ posts
rank: 1000+ posts
Posts: 1632
Joined: Fri Nov 12, 2010 2:15 am
Reputation: 0
Gender: Male

Postby PebbleTrader » Fri Nov 08, 2013 10:39 pm

As for an example, it looks like a chart you are used to seeing. There is OHLC data. The HL is the same and the O is the same for continuity. The only thing that gets created differently is the C.

All you do is take all the up/down ticks within some period and sort them in ascending/descending order and find the 50th percentile, the middle most value, which becomes your synthetic close.
Life is just a journey

Please add www.kreslik.com to your ad blocker white list.
Thank you for your support.

User avatar
MightyOne
rank: 5000+ posts
rank: 5000+ posts
Posts: 5251
Joined: Wed Dec 10, 2008 6:33 pm
Reputation: 46
Gender: Male

Postby MightyOne » Sat Nov 09, 2013 2:31 am

can you post a chart? =)

User avatar
PebbleTrader
rank: 1000+ posts
rank: 1000+ posts
Posts: 1632
Joined: Fri Nov 12, 2010 2:15 am
Reputation: 0
Gender: Male

Postby PebbleTrader » Sat Nov 09, 2013 1:06 pm

Here is an example of the same chart...The only difference between the two charts is one chart has a synthetic close and the other has a normal close.

I highlighted the same section on the chart so that you can see how much more smoother (less fake outs) the synthetic close is.

Why? Because the synthetic close is much harder to manipulate. They can't just "paint" a close as easily...
Life is just a journey

User avatar
PebbleTrader
rank: 1000+ posts
rank: 1000+ posts
Posts: 1632
Joined: Fri Nov 12, 2010 2:15 am
Reputation: 0
Gender: Male

Postby PebbleTrader » Sat Nov 09, 2013 1:14 pm

Normal Close:

Image
Life is just a journey

User avatar
PebbleTrader
rank: 1000+ posts
rank: 1000+ posts
Posts: 1632
Joined: Fri Nov 12, 2010 2:15 am
Reputation: 0
Gender: Male

Postby PebbleTrader » Sat Nov 09, 2013 1:16 pm

Synthetic Close:

Image
Life is just a journey

Please add www.kreslik.com to your ad blocker white list.
Thank you for your support.

User avatar
PebbleTrader
rank: 1000+ posts
rank: 1000+ posts
Posts: 1632
Joined: Fri Nov 12, 2010 2:15 am
Reputation: 0
Gender: Male

Postby PebbleTrader » Sat Nov 09, 2013 1:25 pm

It just makes sense...

Why anyone would want to view (candle bodies or line chart of arbitrary points in time) is beyond me :)
Life is just a journey

User avatar
newscalper
rank: 1000+ posts
rank: 1000+ posts
Posts: 1068
Joined: Tue Oct 19, 2010 5:58 pm
Reputation: 0
Gender: Female

Postby newscalper » Sat Nov 09, 2013 3:12 pm

PebbleTrader wrote:"If you're gong down that route, why use periods at all? Why not renko or 50 tick charts etc?"

The tick data is always being logged in realtime, thus an offline chart using a period converter or tick can be used to create the history file, your choice.


I've got an offline indy that logs ticks - you set the period then it creates boxes per x amount of ticks. Set for 500 ticks say and a box is only printed per that meany ticks. Whether it has use over renko...dunno. Looks similar - lovely in hindsight but unless you're sat there glued to the screen etc etc etc plus the "additional box" proviso that makes hindsight b/es etc actually losses.

User avatar
PebbleTrader
rank: 1000+ posts
rank: 1000+ posts
Posts: 1632
Joined: Fri Nov 12, 2010 2:15 am
Reputation: 0
Gender: Male

Postby PebbleTrader » Sat Nov 09, 2013 3:29 pm

I think this is one of those things where you either see that it's an improvement over traditional methods
or ...maybe it's not for you.

It's simple, either you favor closes based on arbitrary points in time or you
favor something that more intelligently shows if the buyers/sellers are in
control for that data compressed moment which has the added benefit of
smoothing out the price action.
Life is just a journey

User avatar
newscalper
rank: 1000+ posts
rank: 1000+ posts
Posts: 1068
Joined: Tue Oct 19, 2010 5:58 pm
Reputation: 0
Gender: Female

Postby newscalper » Sat Nov 09, 2013 4:37 pm

PebbleTrader wrote:I think this is one of those things where you either see that it's an improvement over traditional methods
or ...maybe it's not for you.

It's simple, either you favor closes based on arbitrary points in time or you
favor something that more intelligently shows if the buyers/sellers are in
control for that data compressed moment which has the added benefit of
smoothing out the price action.


It just seems to be a lot of processing going on, plus the risk of offline charts to do what is basically a data smoothing job - a low pass filter. What's the advantage over an MA on median price?

User avatar
PebbleTrader
rank: 1000+ posts
rank: 1000+ posts
Posts: 1632
Joined: Fri Nov 12, 2010 2:15 am
Reputation: 0
Gender: Male

Postby PebbleTrader » Sat Nov 09, 2013 4:47 pm

I agree.

I'm not a fan of offline charts, especially since they recalculate constantly.

However, if someone is ALREADY using offline charts for PnF, period conversion, etc... Than there is very little additional processing. The code for doing what I described is very minimal and efficient (what makes it not efficient is that MT4 constantly recalculates offline charts).

A simple MA of midpoint on your standard time frame chart is a pretty good approximation of looking at all the ticks and finding the 50th percentile but of course not the same thing.
Life is just a journey

Please add www.kreslik.com to your ad blocker white list.
Thank you for your support.


Return to “TheRumpledOne”