Harmonic Trading - page 88
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fxsystemtrader.
Probably Carney and Pesavento carried out any additional statistical researches and have received these numbers.
I give an example below. Change of the price is entered in an ellipse. And in an ellipse already more complex mathematical dependences. Probably use of square roots from numbers Fibonacci here has already the right.
What numbers to use? It is a theme of separate research. At a forum it you will not solve. For certain somebody carried out similar researches. To familiarize with results of such research it would be useful.
I have plans on carrying out of such research by means of indicator ZUP. But it quickly you will not make.
The forum starts to come to life.
It is good.
Thanks fxsystemtrader for the answer. The good answer.
Also thanks Ziko123.
fxsystemtrader. Numbers/figures from Scott Carney and Larry Pesavento are used in my program. The development at me are not present. It is necessary to carry out researches that there were development. But development of Carney and Pesavento have well shown themselves in work. Why they cannot be used? Numerical dependences Fibonacci prove often unusual image. Pesavento wrote about it .
Let be various approaches at the analysis of the market.
fxsystemtrader.
Probably Carney and Pesavento carried out any additional statistical researches and have received these numbers.
I give an example below. Change of the price is entered in an ellipse. And in an ellipse already more complex mathematical dependences. Probably use of square roots from numbers Fibonacci here has already the right.
What numbers to use? It is a theme of separate research. At a forum it you will not solve. For certain somebody carried out similar researches. To familiarize with results of such research it would be useful.
I have plans on carrying out of such research by means of indicator ZUP. But it quickly you will not make.nen,
Great.
Here is my simple thought.
----------------------------------------------------
Actually, For Gartley Pattern.(in the chart above)
If
XAB =0.618
ABC =0.618
BCD = 1.618,
XAD = 0.854 (= 0.236 + 0.618) !!
not 0.886.
----------------------------------------------------
They actually identify XAD shall be 0.886, but if you set XAB,ABC,BCD as GoldenRatio. XAD AUTOMATICALLY defined as 0.854.
You do math. It's easy.
XAD IS 0.854 and Not 0.886, and such an answer is incorrect in the equation.
The above is the mathmatical fact, and Gartley pattern beauty is that it consists of Goldenratio for every retracement.
There is not a single space for 0.886 root number. Regardless, they implement that in Gartley. It simply does not make sense.
HI nen,
How to draw the ellipse shade which you have shown in the attached chart
of post #884.Can you please explain.
HI nen,
How to draw the ellipse shade which you have shown in the attached chart
of post #884.Can you please explain.Good evening.
The ellipse is drawn the same as also triangles in MT4. Hands. The program is not able to do it. In MT4 there are standard figures which can be imposed on the schedule. And to stretch them till the necessary size.
fxsystemtrader,
Actually, 0.886 is derived from the fourth root of 0.618 or the square root of 0.786. This is from Carney's work on the matter of harmonic fibonacci trading ratios.
DeSoft
fxsystemtrader,
I forgot, you seem to be trying to sell your indicator here. No wonder you are against Nen's free version.
DeSoft
fxsystemtrader,
Actually, 0.886 is derived from the fourth root of 0.618 or the square root of 0.786. This is from Carney's work on the matter of harmonic fibonacci trading ratios.
DeSoftdesoft,
Yes, I read it.
Actualy, in his book, he mentions 0.786 is not wel-known in the industry, etc..
Of course, it's not famous because it's not mathmatically, a substantial number like Fib sequense.
The numbers are simpley a couple of guy's invention, which I won't follow. His work or book is not a bible or something, merely a personal research to me.
On the other hand, as I have shown already, 0.764 is much more important substantial number. It is simpley 1-0.236, the fib sequence.
(1.618 = 1+ 0.618 = 1/ 0.618 = 0.764+ 0.854)
Do you notice 1.618 itself consists of 0.764 and 0.854?
0.764 = 1- 0.236 (= 0.146+ 0.618)
0.854 = 1- 0.146 (= 0.236+ 0.618)
A real fib sequense behaves like this. 0.786 or 0.886 cannot do this trick, because it's not fib.
In his, book, he illustrated his research of charts using 0.786, BUT, have you ever guys imagined the results if he had used 0.764 instead of his 0.786?
The resut, same. The same good result would be illustrated. The both numbers are very close, and actually, I believe it works because it's 0.764 not 0.786 to be exact.
nen's ecliplse is also the same. Use 0.764 or 0.854 instead of his number, the same good result you will see.
Plus, here, most of us use distortion percentage for harmonic patterns such as 7% etc.
Say only 3%,
0.764 x 1.03 = 0.787, which result is bigger than 0.786.
or
0.786 x 0.97 = 0.7624, which is smaller thatn 0.764.
If a mathmatitian is asked which number is more important, she would reply 0.764 not 0.786.
I respect a mathmatical fact more than a personal research, that is why I employ 0.764.
Here is the bottomline, the reason Fib or Harmonic Pattern(based on Fib) works is it's Fib=Golden Ratio. Most ppl easily forget this fact so they could blindly follow some guy's personal research.
Best,
FXST
http://fxsystemtrader.googlepages.com/e_main.htm
desoft,
Actually, I'm not against nen's free version.
Looking at his source-code, it's the best among free ones.
What I am against here is 0.886, and I'm simply telling you a math fact, not advantage of my own tool.
Let's not bias the direction of the discussion.
And, if you have somethng to say, please proceed on the topic.
Greetings, fxsystemtrader.
In program Ensign tool Pesavento patterns is built in. My indicator is constructed similarly to the tool from Ensign. Many dealers using Ensign, apply in trading systems Pesavento patterns. But, in my opinion, it is in most cases applied that Pesavento patterns is under construction on the basis of the indicator of the trend similar on ZigZag. In ZUP this ZigZag gets out by means of parameter ExtIndicator=2.
For the first time about patterns Gartley have written Carney and Pesavento. It is good, that there are other sights at patterns. Your opinion on this question is useful. It allows an occasion to reflect. Nothing can be trusted blindly. All should be checked by means of the experience.
Thanks. Your information is of value.