Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

ant

"Market Delta" Footprint for TradeStation

Recommended Posts

Hi Guys,

I have tired like heck to make it work in Multicharts but with my limited knowledge of code It will not work. If someone has the indicator that works on MC can they please help me out, would be very grateful.

Many Regards

Share this post


Link to post
Share on other sites
Hi Guys,

I have tired like heck to make it work in Multicharts but with my limited knowledge of code It will not work. If someone has the indicator that works on MC can they please help me out, would be very grateful.

Many Regards

 

 

I doubt anybody can help you if you don't help yourself.

 

What do you mean by doesn't work?

 

-- can't compile? what's the error message?

-- jibblish chart? do you have a screen shot?

-- which code are you using? (there are many versions floating around)

do you have a reference link?

 

:-(

Share this post


Link to post
Share on other sites
I doubt anybody can help you if you don't help yourself.

 

What do you mean by doesn't work?

 

-- can't compile? what's the error message?

-- jibblish chart? do you have a screen shot?

-- which code are you using? (there are many versions floating around)

do you have a reference link?

 

:-(

 

Hi Tams,

 

Very Kind of you to a answer back, this is the message I am gettingis:

 

 

01.05.09 17:58:01

------ Build started: ------

Study: "MarketDelta" (Indicator)

Please wait ....

------ Compiled with error(s): ------

this word has already been defined

errLine 23, errColumn 1, errLineEnd 23, errColumnEnd 2

 

Many Thanks,

email

Share this post


Link to post
Share on other sites
Hi Tams,

 

Very Kind of you to a answer back, this is the message I am gettingis:

 

 

01.05.09 17:58:01

------ Build started: ------

Study: "MarketDelta" (Indicator)

Please wait ....

------ Compiled with error(s): ------

this word has already been defined

errLine 23, errColumn 1, errLineEnd 23, errColumnEnd 2

 

Many Thanks,

email

 

 

the error is in Line 23.

look for the highlighted word in your PowerEditor.

Edited by Tams

Share this post


Link to post
Share on other sites

Hi Email,

 

What's on line 23? Is it the line with the "TickSize" variable? If so, maybe Multicharts already defines "TickSize" so that variable definition is not required. If I'm referencing the correct line, try deleting it and compile it again. If that's not the right line, then post the 23rd line of the indicator and I'll do my best to help.

 

Regards,

Antonio

Share this post


Link to post
Share on other sites
Hi Email,

What's on line 23? Is it the line with the "TickSize" variable? If so, maybe Multicharts already defines "TickSize" so that variable definition is not required. If I'm referencing the correct line, try deleting it and compile it again. If that's not the right line, then post the 23rd line of the indicator and I'll do my best to help.

Regards,

Antonio

 

 

 

probably he has previously downloaded an indicator with a function called "Ticksize".

(he can confirm this by checking the functions list in his PowerEditor).

 

 

if that's the case, he can do one of the following:

1. use wiggly brackets {} to enclose that line.

 

or,

 

2. highlight that word and press ctrl-H

replace that word with ticksize1 throughout the code.

 

good luck.

 

 

 

[voice edited]

Edited by Tams

Share this post


Link to post
Share on other sites

Hi Ant/ Tams,

 

I tried to place the brackets at line 23 but then the problem shifts to line 25.

 

this is line 22 to line 26 : 22) Green4(RGB(0,128,0)),

23) i( 0 );

24) nothing on this line

variables: (25

26) intrabarpersist Price( 0 ),

 

 

Thanks Again,

email

Share this post


Link to post
Share on other sites

Email,

 

Line 23 is not what I thought it was. One problem that others have had is that when the variable "i" is used as a subscript in the arrays used by the code, it is not surrounded by square brackets. Go through the code and make sure the arrays use square brackets. For example, you should have Bid and Ask, and not Bid<i> or something else. Hope this helps.

Share this post


Link to post
Share on other sites

Hi, I Hope I`m not being a pain in the back, he is the code if you can notice anything.

 

 

inputs:

Threshold1( 150 ),

Threshold2( 300 ),

Threshold3( 600 ),

DisplayDelta( false ),

Type( 1 ), // 1 = Use Upticks/Downticks, 2 = Use Bid/Ask

BidAskArraySz( 1000 );

 

variables:

TickSize( MinMove / PriceScale ),

PriceAtIndex( Open ),

BaseIndex( BidAskArraySz/2 ),

Red1(RGB(255,185,185)),

Red2(RGB(255,128,128)),

Red3(RGB(255,0,0)),

Red4(RGB(128,0,0)),

Green1(RGB(210,255,210)),

Green2(RGB(125,255,125)),

Green3(RGB(0,255,0)),

Green4(RGB(0,128,0)),

i( 0 );

 

variables:

intrabarpersist Price( 0 ),

intrabarpersist MyVol( 0 ),

intrabarpersist VolTmp( 0 ),

intrabarpersist LastTick( 0 ),

intrabarpersist MyCurrentBar( 0 ),

intrabarpersist Index( 0 ),

intrabarpersist BidAskDelta( 0 ),

intrabarpersist xDelta( 0 ),

intrabarpersist TextString(""),

intrabarpersist MyUpTicks( 0 ),

intrabarpersist MyDownTicks( 0 );

 

Arrays:

intrabarpersist Bid[](0),

intrabarpersist Ask[](0);

 

Array_SetMaxIndex( Bid, BidAskArraySz );

Array_SetMaxIndex( Ask, BidAskArraySz );

 

if (Type = 1 or Type = 2) and LastBarOnChart and BarType < 2 then

begin

MyVol = Ticks;

PriceAtIndex = Open;

 

if CurrentBar > MyCurrentBar then

begin

VolTmp = 0;

MyCurrentBar = CurrentBar;

MyUpTicks = 0;

MyDownTicks = 0;

 

for i = 0 to BidAskArraySz - 1

begin

Bid = 0;

Ask = 0;

end;

end;

 

Index = BaseIndex + (Close - PriceAtIndex) / TickSize;

 

if InsideBid < InsideAsk then

begin

if Type = 1 then

begin

// Use Upticks/Downticks

if DownTicks <> MyDownTicks then

Bid[index] = Bid[index] + MyVol - VolTmp

else if UpTicks <> MyUpTicks then

Ask[index] = Ask[index] + MyVol - VolTmp

else

begin

if Close <= LastTick then

Bid[index] = Bid[index] + MyVol - VolTmp

else

Ask[index] = Ask[index] + MyVol - VolTmp;

end;

end

else

begin

// Use Bid/Ask

// Warning: TradeStation provides snapshot of bid/ask

if Close <= InsideBid then

Bid[index] = Bid[index] + MyVol - VolTmp

else if Close >= InsideAsk then

Ask[index] = Ask[index] + MyVol - VolTmp

else

begin

// Last tick was between bid/ask

if Close <= LastTick then

Bid[index] = Bid[index] + MyVol - VolTmp

else

Ask[index] = Ask[index] + MyVol - VolTmp;

end;

end;

end;

 

MyUpTicks = UpTicks;

MyDownTicks = DownTicks;

VolTmp = MyVol;

LastTick = Close;

 

xDelta = 0;

Price = Low;

 

while Price <= High

begin

Index = BaseIndex + (Price - PriceAtIndex) / TickSize;

TextString = NumToStr(Bid[index],0) + " x " + NumToStr(Ask[index],0);

Value99 = Text_New(Date, Time, 0, " ");

Text_SetString(Value99, TextString);

Text_SetLocation(Value99, Date, Time, Price);

Text_SetStyle(Value99, 1, 1);

 

BidAskDelta = Ask[index] - Bid[index];

if BidAskDelta > Threshold3 then

Text_SetColor(Value99, Green4)

else if BidAskDelta > Threshold2 then

Text_SetColor(Value99, Green3)

else if BidAskDelta > Threshold1 then

Text_SetColor(Value99, Green2)

else if BidAskDelta >= 0 then

Text_SetColor(Value99, Green1)

else if BidAskDelta < -Threshold3 then

Text_SetColor(Value99, Red4)

else if BidAskDelta < -Threshold2 then

Text_SetColor(Value99, Red3)

else if BidAskDelta < -Threshold1 then

Text_SetColor(Value99, Red2)

else

Text_SetColor(Value99, Red1);

 

xDelta = xDelta + BidAskDelta;

 

Price = Price + TickSize;

end;

 

if DisplayDelta = true then

begin

Value99 = Text_New(Date, Time, 0, " ");

Text_SetString(Value99, NumToStr(xDelta, 0 ));

Text_SetLocation(Value99, Date, Time, Low - TickSize);

Text_SetStyle(Value99, 1, 1);

 

if xDelta >= 0 then

Text_SetColor(Value99, Green)

else

Text_SetColor(Value99, Red);

end;

end;

Share this post


Link to post
Share on other sites

Assuming that the code is being copied into Multicharts exactly as you displayed it, then everything looks fine to me. It's hard to debug this without Multicharts. The only other thing I would suggest is that if it's complaining that variable "i" has already been defined, then rename it to something else. For example, change "i" to "x" throughout the code. Tams, already suggested renaming the variable at line 23. Did you try it?

Share this post


Link to post
Share on other sites

Hi ant,

 

Yes I did what Tams said, and what happens when I compile it is that the error shifts to line 25. By the way, when I first imported the inid and then compiled it and then shows me the error the "i" is highlighted in blue. The I (i) must be the problem.

 

Thanks

Share this post


Link to post
Share on other sites

OK, OK got it I think, it just said complete. I`m too tirred to open the chart but it seems to be ok now.

 

I did what you said and that was to change the "i" to an x but I missed one at first, I re did it and now seems to have compiled.

 

Thank you Sir,

Emil;e

Share this post


Link to post
Share on other sites
Hi, I Hope I`m not being a pain in the back, he is the code if you can notice anything...

 

if you had read further down the thread, you would have came across this post:

http://www.traderslaboratory.com/forums/f46/market-delta-footprint-for-tradestation-516.html#post14170

 

someone had already fixed the problem almost 2 years ago:

 

in MultiCharts, the letter " i " is a reserved word.

(used as a substitute for OpenInt)

thus the TradeStation codes with the variable "i" would not work in MultiCharts.

Share this post


Link to post
Share on other sites

Hi Tams,

 

Yes, I read that post but it flew over my head, I did not get it. I am starting to understand it a bit know. Please keep in mind that I do not know a thing about code.

 

Ok, just noticed while trying to apply the indicator to the chart that I get a red box at the bottom of the chart and it says; "Message: Error in study "Market Delta": Array bounds. Wrong index value : 20500.

 

What does that mean.

 

Thanks again

Share this post


Link to post
Share on other sites

I suspect you have one or more of the variable not fixed.

 

If you have not done so, you should go copy the MultiCharts code from the link I posted above.

At least I know someone has compiled that code with no problem.

Share this post


Link to post
Share on other sites

Tams,

 

The compile was successfull, thats what it said. Even when i open the study list is show as compiled, before it did not.

 

Could it be that I need to change the actual setting/inputs when the indi window pops up.

 

cheers

Share this post


Link to post
Share on other sites

That's the same values I have.

 

The market is closed right now, this indicator need live feed to work.

Well, at least you have it compiled; you can test it out on Monday.

Share this post


Link to post
Share on other sites

I hope you guys know that BIDxASK you get with this indicator are INCORRECT due to the tradestation data feed limitation. There is a thread on TS forums that explains this issue.

Share this post


Link to post
Share on other sites

Hi Nick,

 

 

Could you please elaborate a bit on this because i`m sure allot of others here do not have access to the TS forums. Does that also apply to Multicharts. I am assuming no because the feed comes from various sources.

Thanks

Share this post


Link to post
Share on other sites

Here is the answer I posted on TS forum.... the comments are refering to TS datafeed and it may be different for your datafeed...

 

For the benefit of the community I am posting the answer from data integrity:

 

..I have checked with our Product management department in regards to your Data feed accuracy for Inside Bid and Inside Ask.

 

I believe that the inaccuracy is most likely due to the fact that not every bid and ask is sent -- i.e. the "quote field update frequency" limitation. I had checked to see if there was a design flaw. The response I was given is No, it’s not a design flaw.

 

It's because it's a quote request. In a quote request, a snapshot of the market is taken 3-5 times a second. This is as opposed to a tick request, which will update trade ticks (but not bid and ask ticks) in such a way that every individual tick is always sent. I hope this has addressed your concerns.

 

On which I asked again:

Thank you for a quick explanation, but i still can't understand how the "missed" ticks due to update end up on the wrong side.... Basically, if TS supposedly missed the updates, then I should end up with less trades reported... but that is not the case. All trades are reported, but they are in the wrong column ( switched side from bid to ask and vica versa). PLEASE look at the provided pics posted in the forums.

 

... and the final answer was:

I have forwarded your response to our Product Management team and

their response to your question was they'll be mis-categorized if the

bid/ask has moved but not been updated in the current bid and current

ask fields.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Posts

    • Amid the bearish charge witnessed in Bitcoin (BTC) on Monday, El Salvador President Nayib Bukele revealed that the country bought the dip. El Salvador’s Bitcoin Law went into effect on September 7, making it the first sovereign nation to adopt the flagship cryptocurrency as legal tender. President Bukele announced via Twitter that his government acquired an additional 150 BTC with the dip. He tweeted that: BTC traded around $45,000 when Bukele made the announcement yesterday. However, the cryptocurrency has since dropped to the lower-$40,000 area, according to data from TradingView. Meanwhile, ATM tracking website Coinatmradar.com recently revealed that the North American nation now has 205 crypto ATM locations, the third-largest by a country (behind the US and Canada). The launch of the Chivo wallet, the country’s official crypto wallet, started with a rocky start. However, Bukele has assured that the Chivo app now operates in optimal capacity. Reports show that the full adoption of the Chivo app could cost remittance providers like Moneygram and Western Union over $400 million per annum. Last Friday, Bukele tweeted that about 1.1 million Salvadorans now use the Chivo wallet, adding that: “we haven’t enabled 65% of phone models yet.” Key Bitcoin Levels to Watch — September 21 BTC has fallen to a new monthly low of $40,140 following the industry-wide crash. The benchmark cryptocurrency now struggles to pick itself up and back to recent highs. Already, Bitcoin is on track to post a red monthly candle for September as it always has since it went mainstream. BTCUSD – 4-Hour Chart That said, we expect a steady rebound above the $44,000 mark and higher over the coming hours. Nonetheless, we could see a retest of the $41,000 mark if bulls fail to reclaim the $44,000 level soon. Meanwhile, our resistance levels are at $44,000, $44,400, and $45,000, and our key support levels are at $43,000, $42,000, and $41,000. Total Market Capitalization: $2.02 trillion Bitcoin Market Capitalization: $816 billion Bitcoin Dominance: 42.4% Market Rank: #1   Source: https://learn2.trade 
    • Ethereum price breaks moving averages resumes downward Ether targets the low of $2,082 Key Highlights Ethereum ETH) Current Statistics The current price: $2,908.05 Market Capitalization: $341,770,388,786 Trading Volume: $28,141,190,537 Major supply zones: $3,000, $3,500, $4,000 Major demand zones: $2,500, $2,000, $1,500 Ethereum (ETH) Price Analysis September 22, 2021 Ethereum’s (ETH) price has fallen below the moving averages suggesting a further downward movement of the crypto. The bears have also broken below the previous low at $3,026 to another low of $2,656. As the biggest altcoin falls below the previous low, further downsides are likely. Meanwhile, on September 7 downtrend; a retraced candle body tested the 50 % Fibonacci retracement level. The retracement indicates that Ether will fall to level 2.0 Fibonacci extension or level $2,082.71. ETH/USD – Daily Chart ETH Technical Indicators Reading The crypto’s price is now below the moving averages which suggest that Ether is in the bearish trend zone. The altcoin is capable of falling in the bearish trend zone. Ether is at level 40 of the Relative Strength index period 14. It indicates that the altcoin is in the downtrend zone and below the centerline 50. The coin is above the 20% range of the daily stochastic. It indicates that the market is in the bullish trend zone. Conclusion Ethereum is likely to further decline as price breaks below the previous low at level $3,026. Nevertheless, the Fibonacci tool has further indicated a downward move to level 2.0 Fibonacci extension. ETH/USD – 4 Hour Chart   Source: https://learn2.trade 
    • Date : 24th September 2021. Market Update – September 24 – Yields Leap higher. Market News   USD (USDIndex 93.10) weakened to Wednesday lows (92.94) post BOE, SNB, Norges Bank, CBRT, weak PMI’s & Claims and Evergrande missing interest payment deadline – AND no comments from the company. US Federal budget – stand-off continues. Yields stormed higher overnight (10yr closed higher at 1.336%) jumped 10bps to 1.434% in Asian trades (highest since March 2020) Equities rallied again over 1%, sentiment rises but Evergrande worries persist (HSBC, UBS & Blackrock – exposed to a total of $875m). Total offshore exposure – $20bln of the $300bln. USA500 +53 (+1.21%) at 4448. USA500.F lower at 4433. Dow +1.48%. NIKE & Costco beat Earnings. Asian mixed – Nikkei +2%, China lower. VIX tumbles again to 20.50 USOil continues to recover breaches $73.00 – GS talk of $85+ if there is a cold winter. Gold dropped to $1737 (31 day low) has recovered to $1755 now. Overnight – NZD trade balance tanked, JPY CPI & Manu & Services PMI all missed, UK Consumer Confidence halved (-13 vs -7). European Open – December 10-yr Bund future down -24 ticks, alongside broad losses in US futures. Norway kicked off rate hikes in Europe, BoE is also inching towards reduced stimulus which together with Fed tapering hints this week seems to have triggered a market shift. Stocks weren’t too spooked by the yields rise, but uncertainty over Evergrande’s USD coupon payments and lingering concern that China’s property boom could implode and the growth engine running out of steam has seen equity markets turning more cautious once again. DAX future currently down -0.1%, FTSE 100 future little changed. FX markets flat – Sterling holds up, JPY weaker – EURUSD at 1.1732 & Cable at 1.3725 USDJPY recovered to 110.50. Today – German IFO, US New Home Sales, FedSpeak Williams, Mester, Clarida, Powell, George, ECB’s Elderson, BoE’s Tenreyro. Biggest Mover @ (06:30 GMT) GBPJPY (+0.22%) 3 day rally from summer low at 149.40 continues after Hawkish BOE. spiked to 151.70 earlier. Faster MAs aligned higher, MACD signal line & histogram broke 0 line yesterday, RSI 74.50 OB but still rising. H1 ATR 0.150, Daily ATR 0.695. Always trade with strict risk management. Your capital is the single most important aspect of your trading business. Please note that times displayed based on local time zone and are from time of writing this report. Click HERE to access the full HotForex Economic calendar. Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! Click HERE to READ more Market news. Stuart Cowell Head Market Analyst HotForex Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • Date : 23rd September 2021. Market Update – September 23 – FOMC talk November Taper.Market News   USD (USDIndex 93.52) rallies following FOMC – Taper possible from November, first rate rises now brought forward into 2022, Evergrande due to pay local bondholders today, shares rise in HK. Yields flattened as 5yr up 30 yr down – (10yr closed higher at 1.336%) trade at 1.329% now. Equities rallied over 1%, sentiment rises but Evergrande worries persist (HSBC, UBS & Blackrock – exposed to a total of $875m). USA500 +41 (+0.95%) at 4395. USA500.F flat at 4396. Dow +1.00%, Nasdaq +1.02%. Nikkei (closed) & China higher. VIX tumbles to 21.62. USOil continues to recover broke $72.00 – inventories in line (-3.5m barrels). GS talk of $85+ if there is a cold winter Gold dropped to $1760 but has recovered to $1764. Overnight – FED Highlights – We now have 9 forecasts of a 2022 rate hike instead of 7, with 9 instead of 11 now expecting no change. From the dots, it’s clear that the large majority of policymakers want to start raising rates in late-2022 & get back to near-normal by 2024. GDP, saw trimmings for the Fed’s 2021 central tendency to 5.8%-6.0% from 6.8%-7.3%, 2021 headline and core PCE chain price central tendency boosts to 4.0%-4.3% and 3.6%-3.8% respectively. 2021 jobless rate central tendency boosts to 4.6%-4.8%. POWELL – “substantial further progress” has been met for inflation, but there is more uncertainty surrounding the maximum employment goal. Powell noted a split among the FOMC whether employment has improved satisfactorily. He thinks it has “all but been met”. Tapering “could end around the middle of next year.”AUD PMI’s stronger than expected but remain very weak (Services only 44.9).European Open – The December 10-year Bund future is down 21 ticks, the 30-year future meanwhile has moved higher with Treasury futures. DAX & FTSE 100 futures are up 0.5% with risk appetite strengthen post-Fed and amid easing concern on Evergrande, at least for now. In FX markets both EUR and pound strengthened against a steady to lower dollar. Investors are likely to remain cautious ahead of the local central bank announcements from BoE, SNB and Norges Bank today. EURUSD at 1.1715 & Cable at 1.3653. USDJPY recovered to 109.86. BoE Preview: Expected to keep policy settings on hold, but minutes will be watched carefully especially with 2 new MPC members – Catherine Mann (Centrist) & Huw Pill (Hawkish). The central bank already signaled a more hawkish outlook on rates at the previous meeting, which to a certain extent pre-empted the jump in inflation and tightness in labour markets that were the key message of last week’s economic reports. However, retail sales numbers were pretty dismal & consumers are facing higher taxes as well as a phased out wage support, with the phasing out of the furlough scheme a key factor for the BoE’s policy decision going forward. On top of this the country is facing an energy crisis that is having unexpected knock on effects also for the food sector. The central scenario at the moment is for the labour market to remain tight & wage growth strong, as companies are increasingly forced to up wage offers to attract staff. Against that background, the first rate hike could come in H1 2022, depending on virus developments & how the energy market gets through the winter.Today – SNB, Norges Bank (rate hike likley), BoE, CBRT & SARB rate decisions, Eurozone, UK & US flash PMIs, US Weekly Claims, Canadian Retail Sales, ECB’s Elderson.Biggest Mover @ (06:30 GMT) CADJPY (+0.38%) 3 days in row! Breaks two day high t 86.00 and rallied to 86.32 now. Faster MA’s aligned higher, MACD signal line and histogram broke 0 line yesterday, RSI 72.96 OB but still rising. H1 ATR 0.150, Daily ATR 0.695.Always trade with strict risk management. Your capital is the single most important aspect of your trading business. Please note that times displayed based on local time zone and are from time of writing this report.Click HERE to access the full HotForex Economic calendar.Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE!Click HERE to READ more Market news. Stuart Cowell Head Market Analyst HotForex Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • I'm gonna pull a crazyCzarina and reply to a long dead post ... One sure thing about trading forums - The great questions never get an answer.  Ask  even the greatest posters a great question... silence, no nothin’, not even crickets.          First a few comments about Elliott Wave Wave Theory is a ‘science’ of socionomics.  Socionomics is about how societal ideas ‘ideally’ or typically unfold -  wave 1 is the early adapters, wave 3 is broad collective acceptance, wave 5 is continuing valuation narratives but with narrowing collective assessment of actual value... with all kinds of ‘ideal’ sub patterns... Socionomics starts with a simple observation: For lots of issues, how people FEEL influences how they will BEHAVE.  (Equally true = How people BEHAVE influences how they will FEEL... but that’s for another topic) Anyways... Elliott Wave theory is an attempt to apply socionomics  to trading   - and  yes analyst75 “theory” is the key word.  Imo, it’s a jump too far.   First, price is not a good metric for socionomics.... especially across decades when currencies are being viciously  'corrupted'.   And practically, socionomics does not transfer over to trading nearly to the degree Ellioticians would like.   It simply does not deliver enough of those ‘ideal’ sub patterns because  crowds of traders’ behaviors and ‘feelings’ about pricing are not sufficient equivalents of broader collective behaviors / socionomic waves... ESPECIALLY as time frames shorten... (ie waves may appear to ‘fractal’ down ... but they really don’t.)   If you’re going to use EW to trade, probably the most important point you can acknowledge is that 5 wave patterns are EXCEPTIONS to normal trading crowd behavior ie  the best thing a 5 wave pattern indicates is that corrective patterns will soon resume.  I’ve described it differently in other posts*  ... but basically, at any given point in time it is possible to reasonably project that ANY freakin wave ‘count’ / pattern will enfold.   It is just as reasonable to project that a nice 5 wave completion will go on to a nice 7 or 11 or 17 or whatever wave count as it is to project that the market will now have a ‘trend’ change.  At the end of any nice 3 wave corrective pattern, either projecting a huge 5 wave pattern unfolding in the other direction or projecting a long flat congestive pattern or another 3 wave correction pattern... or... all are equally reasonable.  Or, a pretty wave 1, 2, and 3 doesn’t not mean a pretty wave 5 will unfold.  Ie it’s just as reasonable to count it over and project that the next sequence will be corrective or a 5 wave impulsive move in the opposite direction. etc etc       ... to get back to the unanswered question - So what do you propose as an alternate? Long ago I read Hurst.  In a short section of his book he mentioned it.  It didn’t sink in.  Then one day it really hit me.  There is no Elliott wave sequence or any other ‘technical’ price pattern that cannot be better explained via ‘summation of cycles’ ...   * fun example can be seen by searching for 'trading chaos by bill williams' thread on t2w ... TL is so special we don't even allow links to other trading forums? ... other snarky EW comments at http://www.traderslaboratory.com/forums/topic/7555-do-you-use-the-elliott-wave-to-trade/page/2/?tab=comments#comment-146022      
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.