Commercial chaos - page 13
You are missing trading opportunities:
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
Registration
Log in
You agree to website policy and terms of use
If you do not have an account, please register
People like that look for a catch everywhere...
oddly enough, there's only been a couple of posts on the subject.... and the topic is already 12 pages long.... Maybe it's time to stop and have a substantive discussion
I will formulate trading rules and basic trading signals for this strategy today, maybe tomorrow. Please do not swear.
You yourself set the tone of the thread, as newdigital explained to you popularly on the first page. What are your grievances?
What I fought for, I got what I fought for.
You yourself set the tone of the thread, as newdigital explained to you popularly on the first page. What are your grievances?
What I fought for, I got what I fought for.
Get a life, give people a normal conversation that ...
Forum on trading, automated trading systems and trading strategy testing
Trading Chaos
ozhiganov, 2014.04.21 20:35
The thread was made only for one purpose, to gather people who work directly on the chaos, thanks to all who responded, the goal is achieved, THEM CLOSED!!!Genadi, if you do not mind, can you add the signs of the first wave and its definition, so as not to confuse it with a banal zigzag ..... Thank you in advance
The price reached the target zone and rebounded into the first wave up. Now we have the first wave of the first wave up. You can compare it yourself by looking at the chart of the current situation.
The market behaves uniformly chaotic, reflecting the fruits of its movement on the charts. Bill Williams calls Chaos - information and higher order. He formalised the chaotic price movements and suggested some specific trading signals, combining them into a strategy called "Trading Chaos". A perfectly simple strategy, but thanks to its colourful description of psychological and philosophical aspects, it has become an artistic read, which is ambiguously received by mathematical minds. I will write a few theses of the strategy.
1. look for price consolidation - a channel. When the price is moving in a sideways trend. We are interested in the beginning of the trend, not the end. The time when the price begins to be affected by certain forces, rocking the stability up or down.
2. After the sidewall price makes a buy (sell) signal, having formed a fractal outside the Alligator's mouth. (I formalized this fractal as a fractal with a central bar, which doesn't touch any of the Alligator lines). This fractal outside the mouth shows the initial desire of the price to move in the direction on which side of the Alligator the fractal is formed. But it is very important to see what happens after the fractal is formed. The depth of correction from the top of fractal level. If the price sharply corrected from the peak (trough) forming the fractal, the interest in the fractal will drop heavily. And understanding that a fractal is a beginning and an end of a wave of the n-th level, we conclude that the price will go back to the sideways direction. But if, after the fractal, the candlestick (bar) shelf is formed or the fractal is quickly broken through in the trend direction, then we should enter without thinking about the consequences. You are in the trend as long as the price is outside the Alligator's mouth. Exit a position after the price closes within the Alligator's mouth. The subtlety is a false fractal breakout. This fact is described by Larry Williams and is called "The Naked Close" or "A trap for a trader". You can google and read about it. In brief, the trader exits if the price breaks the extremum of the bar that broke through the fractal in the opposite direction. 3.
A good entry point into the market is when the price breaks the level of the bar located above (below) the "Saucer" signal - changing of the AO histogram colour in the direction of the formed fractal described in point 2.
4. The divergence signal between the price and AO indicator. The price makes a new extremum, but AO indicator histogram does not support this movement. Do not confuse the divergence of AO in the third wave. We are interested in the divergence of the 5th in the 3rd wave and the divergence of the 5th in the 5th after zeroing of the AO histogram in the 4th wave.
5. The zonal signal. Red and green zones. Again not the end, but the beginning. How to determine. Using the red zone as an example. We look at the first two bars when the zone starts. If there is another condition to the zone, the 1st or 2nd bar must close below the previous bar's closing price.
6. Priceaction + AO indicator give signals of the 2nd "Sage" and the so-called "Special Blue Light" signals. When the histogram is rising, but at the same time internal bars are forming before the price jumps up.
7. "First pundits" - the usual pin bars or Pin Bars or Spikes. Especially "squat" bars or scoot bars. In 85% of cases, if they deviate from the balance line they lead to a change in price direction. And if they reach the target wave zone, they reverse the market. There are also Scout bars which say that the price will not reverse but go exactly from the beginning of the wave to the middle of this bar.
This is in brief.
The market behaves uniformly chaotic, reflecting the fruits of its movement on the charts. Bill Williams calls Chaos - information and higher order. He formalised the chaotic price movements and suggested some specific trading signals, combining them into a strategy called "Trading Chaos". A perfectly simple strategy, but thanks to its colourful description of psychological and philosophical aspects, it has become an artistic read, which is ambiguously received by mathematical minds. I will write a few theses of the strategy.
1. look for price consolidation - a channel. When the price is moving in a sideways trend. We are interested in the beginning of the trend, not the end. The time when the price begins to be affected by certain forces, rocking the stability up or down.
2. After the sidewall price makes a buy (sell) signal, having formed a fractal outside the Alligator's mouth. (I formalized this fractal as a fractal with a central bar, which doesn't touch any of the Alligator lines). This fractal outside the mouth shows the initial desire of the price to move in the direction on which side of the Alligator the fractal is formed. But it is very important to see what happens after the fractal is formed. The depth of correction from the top of fractal level. If the price sharply corrected from the peak (trough) forming the fractal, the interest in the fractal will drop heavily. And understanding that a fractal is a beginning and an end of a wave of the n-th level, we conclude that the price will go back to the sideways direction. But if, after the fractal, the candlestick (bar) shelves or a rapid breakout of the fractal in the trend direction takes place, we should enter without thinking about the consequences. You are in the trend as long as the price is outside the Alligator's mouth. Exit a position after the price closes within the Alligator's mouth. The subtlety is a false fractal breakout. This fact is described by Larry Williams and is called "The Naked Close" or "A trap for a trader". You can google and read about it. In brief, the trader exits if the price breaks the extremum of the bar that broke through the fractal in the opposite direction. 3.
A good entry point into the market is when the price breaks the level of the bar located above (below) the "Saucer" signal - changing of the AO histogram colour in the direction of the formed fractal described in point 2.
4. The divergence signal between the price and AO indicator. The price makes a new extremum, but AO indicator histogram does not support this movement. Do not confuse the divergence of AO in the third wave. We are interested in the divergence of the 5th in the 3rd wave and the divergence of the 5th in the 5th after zeroing of the AO histogram in the 4th wave.
5. The zonal signal. Red and green zones. Again not the end, but the beginning. How to determine. Using the red zone as an example. We look at the first two bars when the zone starts. If there is another condition to the zone, the 1st or 2nd bar must close below the previous bar's closing price.
6. Priceaction + AO indicator give signals of the 2nd "Sage" and the so-called "Special Blue Light" signals. When the histogram is rising, but at the same time internal bars are forming before the price jumps up.
7. "First pundits" - the usual pin bars or Pin Bars or Spikes. Especially "squat" bars or scoot bars. In 85% of cases, if they deviate from the balance line they lead to a change in price direction. And if they reach the target wave zone, they reverse the market. There are also Scout bars which say that the price will not reverse but will pass exactly from the beginning of the wave to the middle of this bar.
This is in brief.
Well written... it's just that not everyone understands it all the same... it would be cool to include pictures... for a better comprehension... but all in all it's pretty good...