A pattern. - page 32
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It is very difficult to find common ground if there is disagreement about the understanding of the trend.
The trend in forex is a sequence of impulse and correction waves. The predominance of impulse waves will ultimately show the direction of the trend.
There is one "but".
A corrective wave is also a part of the trend, only in the opposite direction, and it may have a long duration. No one pays attention to it on forums. Hence there is a misunderstanding.
Perhaps, it is better to apply the term "wave" rather than "trend" in choosing the price direction to avoid confusion.
A wave is up. A downward wave. Simple and easy to understand.
It is very difficult to find common ground if there are differences in understanding the trend.
The trend in forex is a sequence of impulse and correction waves. The predominance of impulse waves will ultimately show the direction of the trend.
There is one "but".
A corrective wave is also a part of the trend, only in the opposite direction, and it can have a long lasting pattern. No one pays attention to it on forums. Hence there is a misunderstanding.
Perhaps, it is better to apply the term wave than trend when choosing the price direction to avoid confusion.
A wave is up. A downward wave. It is simple and easy to understand.
On this problem:https://www.mql5.com/ru/forum/245321/page15#comment_8210663
Tired of hearing that there is no supply and demand in the forex market.
Let me show you an example of EURJPY
Lilac graph - demand for EUR
white graph - demand for JPY
See for yourself how the demand affects the currency pair.
The higher the regularity, the better the price chart is formatted.
That is, every tick should not be taken as important information. On the contrary, it is necessary to divide the price into extremums and take them as the priority information about the price. In practice, the three-wave theory in TS Pathfinder and TS GOR is suitable for it. Only three extrema are important there: momentum-correction-pulse. And each wave has its own extremum.
If we take in chronological order the important extrema, we will have a large number of ticks discarded as unnecessary noise that reduces the quality of predictability reducing it to randomness and the price itself to random wandering.
And, having collected all the important extrema, we will get not a time chronology, but a wave chronology, where only those quotes, which have dramatically changed the price structure, are taken. I.e. if we translate it into a list of quotes, the usual
00:00:00:000 - 1.00000
00:00:00:123 - 1.00001
00:00:01:356 - 1.00002
is reformatted into a more concise table where time does not play a role but changes in the wave structure do. And these changes give a higher predictability than the temporal chronology.
My signal is built on this principle, so if it is successful, the theory will be confirmed.
The better a price chart is formatted, the higher the regularity is.
I.e., it is not necessary to take each tick as an important information. On the contrary, it is necessary to divide the price into extrema and take them as a priority information about the price. In practice, the three-wave theory in TS Pathfinder and TS GOR is suitable for it. Only three extrema are important there: momentum-correction-pulse. And each wave has its own extremum.
If we take in chronological order the important extrema, we will have a large number of ticks discarded as unnecessary noise that reduces the quality of predictability reducing it to randomness and the price itself to random wandering.
And, having collected all the important extrema, we will get not a time chronology, but a wave chronology, where only those quotes, which have dramatically changed the price structure, are taken. I.e. if we translate it into a list of quotes, the usual
00:00:00:000 - 1.00000
00:00:00:123 - 1.00001
00:00:01:356 - 1.00002
is reformatted into a more concise table where time does not play a role but changes in the wave structure do. And these changes give a higher predictability than the temporal chronology.
My signal is built on this principle, so if it is successful, the theory will be confirmed.
In the last picture I just showed the price dependence on demand for different currencies. I did not consider the extremums there, although they are present in the perspective of the period in question. For the analysis it is of course too small period.
As for the wave structure, ZZ deals with it perfectly. Each ZZ knee is taken as a wave with a certain characteristic, and a set of waves forms a pattern. ATC immediately understands the language of the operator. In TA the wave structure comes first and the rest is filtered out.
The most difficult moment is always determining the last extremum, i.e. the moment when the current wave finishes. But this issue is already solved.