a trading strategy based on Elliott Wave Theory - page 27

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MarketProfile does show where price lingers more and where it lags less. If we assume that there are some levels (we may call them attractors) where the price tends to reach but does not linger - it either turns around or breaks through them, using MP we may detect them as noticeable lows. Having additionally the criteria of reversal and breakout - what else does a trader need to be happy to meet his old age :)

Green lines: as I wrote - they are drawn for the same reasons as the red ones, only based on MP readings of the previous day.
 
Actually, I don't really like the term "random processes". If you analyse the spectrum of market fluctuations, you can see clear patterns. By the combination of harmonics, the pattern of changes can be seen on minute-day ranges over 1-2-3 days, and on global weekly-monthly ranges over weeks, months, etc. It is interesting to observe the frustration of most fast traders when the emergence of the situation was seen 1-3 days before. The term "random" is rather used, because of the difficulty of covering and seeing the causes that give rise to certain events. But there is no randomness in the world. According to Newton's 3rd law, there are only causes and effects. And in my opinion, if it's impossible to understand, predict and see them, it is a purely human factor of reasonability and development of other sides of psyche and technical-forecasting preparation.

Regards - Alexander.
 
The green lines: I have written - they are drawn for the same reasons as the red ones, only based on the previous day's MP reading.

This is just as clear. The 4 levels for the 24th are quite obvious, but the 5 for the 23rd is unclear.
A relatively smooth bell, I'd say 2 levels matching the 2 for the 24th.
 
Newton's 3rd law has only cause and effect.

Actually, Newton's 3rd law is a consequence of the law of conservation of energy in closed systems where conservative forces act. There are more general laws in nature and not all of them are deterministic. Those are just the ones that deal with processes whose outcome can ONLY be described in a probabilistic way. And the impossibility of covering them is ... Well, you know that yourself.
 
It's hard to say, he drew it as he saw it, another will draw it in his own way.
 
It's hard to say, he drew it as he saw it, another will draw it in his own way.

Yes, I agree. It's not a question of who "sees" better, you or me. I simply find this approach promising. However, it is not enough for an indicator, we need algorithmic criteria for defining levels. And I think we need to deal with the period. It is not necessary to take data for one day.
 
Трудно сказать, рисовал так, как видел, другой нарисует по своему.

Yes, I agree. It's not a question of who "sees" better, you or me. I just find this approach promising. However, it is not enough for an indicator, we need algorithmic criteria for determining levels. And I think we need to deal with the period. We do not have to take data for one day.


That's the interesting part, we need to somehow smooth out these bars/steps without spilling out the right one. Whether it's a spline approximation or a Fourier trough, I haven't thought about it yet.
 
That's the interesting part, you need to smooth out these bars/steps somehow, without spilling out the right thing. Either a spline approximation or a Fourier trough, I haven't thought about it yet.


It seems to me that it is not necessary. In my opinion levels are not lows of this distribution curve.
If support/resistance levels limit the area of price fluctuation where it spends a significant amount of time, then that area will be obtained by cutting off that part of the MR distribution that is greater than some value. And the problem is not even in defining this value, but in the fact that the accumulation of data over time blurs the picture. The levels are only valid for a certain time interval and then they change.
 
Actually, Newton's 3rd law is a consequence of the law of conservation of energy in closed systems

Well, about the 3rd law I wrote, for "greater science", in general you understand the essence.

With importance - Alexander.
 
I read the whole thread yesterday from start to finish. Here is what I understood.



Many thanks to Vladislav for sharing the methodology (probably saved many years) and to solandr for his ability to have a constructive substantive conversation/ask questions (also very rare, however).
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