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Wave-5

EURNZD I Wait for break of resistance and go LONGWelcome back! Let me know your thoughts in the comments! **EURNZD Analysis - Listen to video! We recommend that you keep this pair on your watchlist and enter when the entry criteria of your strategy is met. Please support this idea with a LIKE and COMMENT if you find it useful and Click "Follow" on our profile if you'd like these trade ideas delivered straight to your email in the future. Thanks for your continued support!
Long
by BKTradingAcademy
7
Wave Auction Theory & WHY it worksSup, this is the 30th & the last post that concludes all the previous ones, and finally reveals the name how I've called all this - wave auction theory. Well, me as a creator of all this (or more like a mixer, a DJ lol) I think about it more as a theorem, but that's for nerds and geeks to work it out, me I just wanna flexx. If you take a look at all existing market theories their main thing is they all attempt to divide market activity into parts. Patterns, El waves, Wyckoff market states, then what Steidlmayer created (I call it Interval Auction Theory, since he divided market activity in parts by days, weeks, months etc). The main problem with is all these concepts (maybe except the last one) dem are not well defined, and they apply on the fractal market something that the highest resolution of this fractal (raw tick chart) doesn't have. Wave auction theory ain't superimposing any exogenous structures on the market, such as "crowd behaviors", nah, it doesn't guess and predicts anything, it derives the principles and structures from the sequences of fundamental particles of the market - ticks, and it can be used fully on this fundamental resolution. This is the most fundamental principle how you can divide market activity without any subjectivity: waves and levels. Btw, indirectly, we also gain the interval size information by choosing the right resolutions, while interval auction theory disregards sequence of events (read my post about market & volume profiles). Why it all works It's a lil bit recursive kind of thing, you need to read all the statements below multiple times in different order, then your brain will start making the whole picture out of it, and finally things will come together, you'll feel that "snap" in your head. It's the best I can do. * Market is fractal => all the principles propagate through all the resolutions; * Market is a feedback loop, market is ALL of us together, that famous "composite operator" that Wyckoff tried to explain to people around him, that composite operator is All of us - the collective; * Each individual entity in the collective has different voting power = better you operate = better the market = more revenues & capital you have = more voting power you have; * We all have all the same data => we can gain as much information as there is in the data; * Data on every resolution has information where it is, it was, or it will be cheap or expensive, every1 gains it with different degree of precision, but essentially every1 gains the same info because it's the same market & same data; * The only thing that works all the time in all the cases is being an operator (a market maker) aka you buy cheap and sell expensive; * Market making happens on all the resolutions, be it 1 minute or 1 week chart, on the former it might be one dude with 100 shares, on 1W it might be 100k dudes with 100 shares, the collective is always there, even on yearly charts; * More data & information you have, the more question of "what's going to happen in the future" transforms into the question of "what IS happening NOW"; * market works on the principle I call "GTC Naive" (good till cancel Naive forecast), meaning that "the stuff's gonna continue the same way UNTIL there's an event/evidence that'll change it"; We all make the future, how can we not know what we're making ourselves if we have the info and exogenous factors are not numerous and secondary at best, and the system itself is quazi-closed? Still gonna try to analyze log returns? xD Everything is already decided, we've decided all of that ourselves having the same data & same info xdddd All the prophecies are self fulfilling prophecies by definition lmao, they are consequences of sequences of choices made by every1 through all the timeline. While loosing precision we gain generality => are able to understand what IS happening NOW. Not even contra intuitive aye? The good side point of all this is that now you can rewatch Matrix movies (all of dem) and finally understand the dialogs between Neo and The Oracle (the parts her telling him the choice is already made). Coming back to the theme, I share all this because I think that markets are sadly unhealthy, there's ENORMOUS room for liquidity provision for centuries to come on Ks of assets. Better we gonna operate, more clients = more volume will come to the markets => better for all of us. The last several things I wanna share: 1) You can approach designing an automated agent (a bot) by following principle, smth I call "sMATEs framework"; - s: selection of assets that will end up in your masterlist; - M: management - choosing between the most potent timeframes & assets within the assets in masterlist; - A: analytics, seeing what's happening on your chosen data, choosing the signal generation method aka strategy accordingly; - T: trading, generation the actual signals based on the strategy chosen before; - E: execution, processing & fine tuning the actual executions based on the signals; -s: sizing: choosing the quantities based on equity control and what the market can give. The two small Ss are the only levels where you need to use ML. Reinforced learning for sizing based on order book & equity chart of a given agent. Then you can use ML & AI to form the masterlist, based on what you want. Generally you're interested in action or as I say in MEAT (ain't no vegan bruh sorry). 2) Each market has its own main cycle set: set of properly chosen optimal resolutions & time frames & rolling window lengths (no, there's nothing to optimize there & no need in dynamic lengths). I think you can figure it out reading all the posts & studies I've posted lately. I can give a hint: if you want to divide smth, you always try to divide it by 5 first. If you can't by 5, then by 4. If you can't by 4, then by 6. If you can't by 6, then by 3. If you even can't by 3, then by 7. And omg if you can't by 7, then in theory it's by 2, but not on our planet with our modern time system. Look at the 2 centuries of S&P chart in this post and see what I see. 3) If you a coward, or an overconfident prick, or a cheater, or a lier, or a snitch, you wont't succeed. You'll succeed if you're real & legit, in this case it's only a matter of time. From there it seems like my path goes somewhere else, but this is the way, all good TV, was fun. Remember, there's no noise, only the truth
SP:SPXEducation
by gorx1
1
GBPCHF On An IMPORTANT AreaHello traders: #.WHAT ARE WE EXPECTING: I'm expecting a reversal pattern that can push price up IMPULSIVELY, there is a pattern forming on the LTF also like the same falling wedge which make the trade still valid and as a confluence to confirm the trade. #. HOW DO WE ENTER: Wait for a bullish impulse move on the lower time frame followed by a continuational correction,on the break of LTF correction comes entry #. OUR STOP LEVEL: Below lower time frame correction #. POSSIBLE TARGET: Top of the falling wedge AS ALWAYS TRADE SAFE AND STAY SAFE COMPLEMENT OF THE SEASON 🎄
Long
by REAL_CRYPTO_VIC
1
Wave exhaustionThe main purpose of analyzing waves is to understand when the current wave is exhausted aka overextended aka overbought aka oversold. What is every1 seem to miss is that exhaustion is not based exclusively on "price gone too far", but also on "too much time passed" and "not much volume was traded" as well. That's one of the main reasons why your comparative analysis, divergences on so called "indicators" do not work properly. It simply can't. These methods do not gain time & volume information from the data. When you analyze order flow on any resolution, be it 1 minute, 5 years or tick chart, you're interested in 2 waves: current wave and *the very last (previous) wave in the same direction . * including the imaginary waves Don't forget to turn in log scale when it's needed! You compare these 2 as the current wave develops and keep updating the answer to the binary question, "which of these two waves is weaker". Strength of a wave = it's ability to continue. Every wave starts strong and goes weaker and weaker, the factors are: 1) Time. Horizontal size of a wave (in bars), more time (more bars) - weaker ; 2) Range. Vertical size of a wave, higher range - weake r; 3) Volume, or inferred volume. You sum up all the volume within a wave, or sum up all the bar sizes within a wave. Less volume - weaker .* * in order not to sum up anything within a wave yourself, here you can turn in volume/range bars and simply count em. And from that moment it's like "Best of 3" comparison. 1) Time. Wave A 10 bars, wave B 5 bars. Wave B is stronger; 2) Range. Wave A 546 points, wave B 890 points. Wave A is stronger; 3) Volume. Wave A 10k, wave wave B 8k. Wave A is stronger; So at that point, wave A was stronger = wave B was weaker. This will be giving you a binary answer which wave is weaker. When the current wave becomes weaker than the last wave in the same direction, current wave is considered exhausted. P.S.: wave start in time (first bar of the wave) is the level origin itself or the first bar that touched a level if we talked about a new wave starting from an already positioned level, or about a wave started after clearing a positioned level. The more you'll think about the more it'll make sense. An example. Remember seeing fast price jumps? After some, the price reverses very fast and goes back, after others prices continues in the direction of the jump. In most of the cases the current wave (the jump) gets exhausted in terms of price, but not exhausted in terms of time (the jump was very fast). So in terrms of time and price both waves are 50/50. What is different is volume. If the current wave (the jump) had a huge volume, overall it's still not exhausted, hence it continues. Sounds familiar? Sounds logical? Just the last simple and obvious thing, in most cases you won't need to calculate sum volumes/ranges, usually at the moment of analysis the current wave is already longer and higher than the previous one in the same direction, hence the current wave is already exhausted. Yessir
SP:SPXEducation
by gorx1
1
Imaginary wavesAgain as with the levels, first ima tell how to locate both real & imaginary waves, then I'll explain the principle itself, what are they, why it works etc, why we need em & how to use em. It's really easier this way. Let's start with imaginary waves. First, pls read the linked "Imaginary levels: fair price aka value", it has an explanation and another common example & about the imaginary levels. As with imaginary levels, imaginary waves are, well, imagined xd, when there's nothing else, but a decision has to be made. Look at the chart as if you're in 2k13 (when ASAP dropped Trap Lord) as in the previous example in the linked study, we have an overridden wave 520-1923.7, we have an imagined fair price level somewhere around 1200. When we have an overridden wave -> we have the imaginary fair price level somewhere ~ in the middle of this wave -> that fair price level divides the real wave into 2 imaginary waves. As with imaginary levels, imaginary waves can be used for further processing.
COMEX:GC1!Education
by gorx1