Very very interesting PL. What would you suggest as a size for taking the 4-6 pt moves from the ES? Kind regards It appears that you have a two year start on me.
For intraday use the 6561 for Trend and the 729 for entries and exits. For scalping use the 729 for Trend and the 81 for entries and exits. If you are interested in Swing or Position trading, go up 1 or 2 chart increments for the Trend. I didn't read my first book on trading for 8 years just so I wouldn't be tainted by the opinions of others. I just studied the data for consistencies and with my background in problem solving, it worked. Now, most of the books I read are simply comical because almost non are grounded in quantitative objective facts, they are manipulated statistical piles of poo. If you lay out and view the charts correctly you will prove to yourself that price moves consistently. You won't need to put your faith in anyone but yourself.
Gracias PL. I am running a V2500 ( 50*50) alongside my tic chart as I trade and it is smoother. Trades are not really any different but they are easier to see and there are some interesting repetitive patterns appearing. My wife thinks that V charts may add 20 years to my life. Given that I am 60, only half way through my life and with no idea what I am going to do when I eventually grow up, this comes as a huge bonus. Incidentally, I am running a countdown on my V charts ... useful little beggar.
Your wife is an awful smart woman . . . probably one of the reasons you married her. You are Absolutely correct! What you see are clearer and more consistent oscillations. It is "different". Clarity is what trading is all about. It' like the difference between watching football on high def or a TV with the signal coming in from a pole antennae.
ProfLogic, I would cut out the dead times to calculate the fast charts - as in my example I gave the 1 minute. That period is a completely different environment from the hours that I trade and thus would dilute the power of the signal if it is included. Again, I am coming from an fx background - where there are approx. 8 distinct phases - each with different profiles: Late US, Asian Open, Mid Asian Euro Open Pre US Open US Open + announcement phase Pre european close Post European close The first group in fx definately has a different pace than the second group. Even in the second group there are some big differences (ie just after 8.30am ET - the market usually goes nuts for an hour or so). If you included the Asian period in this calculation the one minute would be a 2 minute effectively, and so on down the line. If I was looking at the overall picture in a 24 hour market, off-course a different course of action is needed. In that situation (ie re-creating hour+ data in tick format), I would look at all the data. But the faster entry charts I would not.
My point is that if you use all of the data even to view your faster environment, then all of your chart increments will become clearer. Try it . . . you might like it.
Hi ProfLogic, This is great info. I am actually working down the same lines. Only, I currently use fib numbers. Do you mind to explain why you use 9 as a main # in your calculations, besides it being a perfect square. Thanks.
ProfLogic, I start with the 1 minute calculation with the calculation methods that I gave and work upwards from there (using multiples of 3,15,30 and 60). Try it...you might like it
Nine isn't a necessity, it was just an example. Personally I use a different number but anything below 10 squared out works. The point is that whatever number you use, build on them using squares. Fib numbers don't lend themselves well to being squared or cubed. The results are charts that are too large. What you are looking for are charts where price is clear and smooth.
I did, years ago and discovered there was too much noise in minute charts. Noise like static on a TV screen skews the view and personally I like crystal clear like HDTV.