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.

Recommended Posts

I cannot find the definitions for;

B2B 2R 2B

Or

R2R 2B 2R

 

What does "B2B", "2R", and "2B" mean/stand for?

What does "R2R", "2B", and "2R" mean/stand for?

 

What does Gaussian mean?

 

Many thanks!

 

Please review Spydertraders original post highlighting Gaussians and there formations below..

 

Gaussians

 

The Volume Sequences (represented by Dominant and Non-Dominant Gaussian Formation) when matched with the above drawn trend lines for each trading fractal create the B2B 2R 2B (uptrend) cycle, as well as, the R2R 2B 2R (downtrend) cycle. Increasing Volume in the direction of the current trend represents dominant Volume. We represent such phenomenon with an increasing Gaussian line in our Volume Pane with the goal of syncing our trend lines with our Gaussian lines of equal weight See Attached.

 

attachment.php?attachmentid=11927&stc=1&d=1246813024

 

To Be Continued ...

 

- Spydertrader

 

Here is another view of the volume gaussians sequences:

gaussians.jpg.4efd2403293758d66dd8894357ec17ce.jpg

Edited by ehorn

Share this post


Link to post
Share on other sites
Would that I had your eyes, so that I too could see the truth. I shall learn to distinguish that which I believe exists from that which the market has actually provided me.

 

As Spydertrader describes - the process consists of a 4 part routine (MADA). He is kindly providing the framework necessary to accurately perform the first part (M)onitor. As a practitioner of these methods performs the routine, over time, the mind becomes differentiated to be able to "see" what cannot be seen at first.

 

Best wishes

Share this post


Link to post
Share on other sites

I'm wondering if you changed the rule for bar coloring.

 

I have the 'default' settings (for most charting software) shown currently - where Price Bar Color results from the differences between open and close. For the 'neutral bars' (or Doji for those of a 'candlestick' orientation), I simply added a bit of coding in order to 'color' them correctly (rather than show up as a different color than the up / down Price Bars).

 

I set the bar coloration this way for educational purposes.

 

HTH

 

- Spydertrader

Share this post


Link to post
Share on other sites

Hi Spydertrader,

 

I'm not sure about what you mean regarding your July 8,05:11 PM post (chart).

 

Do you mean there are Two Lateral Formations?

Lateral Formation A - 10:25 to 10:55 (close of bar)

Lateral Formation B - 11:00 to 11:20 (close of bar)

Please see the attached. TIA

5aa70efad8581_LateralFormationsA.B.gif.84ed6ee6315a4633efd439e2ec5221d0.gif

Share this post


Link to post
Share on other sites
See Attached.

 

- Spydertrader

 

attachment.php?attachmentid=12030&stc=1&d=1247087480

 

Does the Lateral end when a bar closes outside of the first bar in the lateral? As that is the moment market leans towards that break out direction? It is not clear to me on the first yellow lateral why it ends in location shown. Please - will you clarify? Thank you!

Share this post


Link to post
Share on other sites

What is a dominant vs. a non-dominant lateral?

 

At the cost of showing my ignorance, here goes

 

Lateral L1 happens earlier in the day with a wider swing (height of lateral) than Laterals L2 and L3. Thus L1 showing a more volitile condition. Without looking at the volume, I would guess that vol is higher at L1 than at L2 or L3.

 

L2 is much longer (time wise) than L1 and L3 (indicating directionless market?).

 

The first bar of Lateral L1 is an up bar after a pronounced up move. L1 is a curb of upward movement (bar 1 is up while bar 2 is down)- consolidation at the highs, while L2 and L3 are curbs of downward movement - (bar 1 in both laterals are down, b2 is up). L2 and L3 both occur after an inside bar formation, indicating that the market has already entered "pause" mode. Bar 1 in L2 and L3 both have a lower high than the bar prior to L2 and L3.

 

L1 formation of bar 1 to bar 3 is up-down-up

L2 formation of bar 1 to bar 3 is down-up-up

L3 formation of bar 1 to bar 3 is down-up-up

 

Bar 3 of L1 and L2 are inside bars compared to bar 2 while not the case in L3.

 

L1 has one upward violation testing the highs before the end of L1 as red bar closes below lateral lows. L2 has violates both upper and lower boundaries before picking a side and closes outside of L2 boundaries. L3 has no violations of boundaries before bar closes outside of L3 boundaries and L3 ends.

 

Price comes up into Lateral L1 and exits L1 down (change of direction)

Price comes down into Lateral L2 and exits L2 up (change of direction)

Price comes down into Lateral L3 and exits L3 down (continuation of prior move)

 

Outside Bar OB1 is a down bar after prior up bar.

Outside Bar OB2 is an up bar after prior down bar.

 

Both OB1 and OB2 closes near the open of the prior bar (tried to go somewhere but did not succeed)

 

Outside Bar OB1 occurs after L1 bars 1 to 3 (after a Lateral is formed), and violates the height of L1 bar 1 (swing high), but closes inside L1. OB2 is not in a lateral formation and does not violate the swing high (2nd bar prior to OB2).

 

Stitch S1 has same color bars - red red.

Stitch S2 has different color bars - black red.

 

S1 occur in the middle of a down move (down tape).

S2 occurs at the end of an up move (up tape)

Spyder-09Jul08Drill-1a.thumb.JPG.997a6102e29d26aa15c107434f2bb878.JPG

Share this post


Link to post
Share on other sites

Today's drill .....

- Spydertrader

see attached chart for differences on OB's and stitches.

I don't see anything conclusive that differentiates the lats.

20090706lats.thumb.png.88175b29e62656cbf45c9b195724ba75.png

Share this post


Link to post
Share on other sites
Does the Lateral end when a bar closes outside of the first bar in the lateral?

 

When I authored this post (quoted below), I had just these sort of questions in mind.

 

Today's drill involves determining what answer best describes the differences, and once located, by using the information provided by the Price Pane and / or the Volume Pane, applying that answer onto other chart days in an effort to 'see' if your answer 'works' for every other exact same scenario - irrespective of market day.

 

You've developed an answer which states "a lateral ends when a bar closes Outside the Lateral Formation." Now apply this answer onto the attachment of Post #57 - specifically, the 'pink' highlighted lateral formation. Does your answer 'work' in this specific example? If the (pink) Lateral Continues beyond the point in time where your answer develops, then perhaps, a different answer better describes the phenomenon in question.

 

Such is how learning the process of differentiation begins.

 

At the cost of showing my ignorance, here goes...

 

Everyone, from a neophyte just today deciding to investigate the potential for earning a living by trading markets, all the way to the most seasoned investors and traders - such as Wareen Buffet - began their journey the exact same way. We all remember what it was like to be new. Nobody choosing to participate in this thread need concern themself with "showing their ignorance" in a post. Mistakes and errors occur. Learning from those errors represents one of the best opportunities to move forward.

 

It is the process that matters as success represents a consequence of the the learning process.

 

Price

Price

Price

 

Do you see that you are only using half the available data, rather than the entire data set?

 

HTH.

 

- Spydertrader

Share this post


Link to post
Share on other sites

You've developed an answer which states "a lateral ends when a bar closes Outside the Lateral Formation." Now apply this answer onto the attachment of Post #57 - specifically, the 'pink' highlighted lateral formation. Does your answer 'work' in this specific example? If the (pink) Lateral Continues beyond the point in time where your answer develops, then perhaps, a different answer better describes the phenomenon in question.

 

I am confused. It looks like the pink lateral ends when the internal green lateral ends. And the internal green lateral ends when a bar closes outside of that green plus pink lateral??

 

Do you see that you are only using half the available data, rather than the entire data set?

 

Do you mean I am only looking at price now while I should be looking at price plus volume?

Share this post


Link to post
Share on other sites

Attempt at lat differentiation:

 

1st lat, starting 09:50, begins with dominant black volume, but this changes to dominant short volume on the OB bar at 10:05. Lat ends with bo short.

 

2nd lat, starting 12:00, begins with dominant red volume, which changes to dominant long volume at 12:15 but this is followed by a change to dominant short volume at 12:30 (still inside the lat) and a further change to dominant long volume at 12:55. Lat ends with bo long.

 

3rd lat, starting 15:15, begins with dominant red volume and there is no dominant change within the lat. Lat ends with bo short.

Share this post


Link to post
Share on other sites

I am confused. It looks like the pink lateral ends when the internal green lateral ends.

 

If you apply your answer as to when one ends a Lateral Formation, your answer 'ends' the Lateral far sooner than where the lateral actually ends. In other words, please locate the "first bar to exit (close out of) the lateral formation" (your answer) and determine whether or not the lateral actually ends at such a point. I've market the correct end point. I think you'll see how your answer incorrectly would end this lateral several bars prematurely.

 

Do you mean I am only looking at price now while I should be looking at price plus volume?

 

As outlined in this post ...

 

Today's drill involves determining what answer best describes the differences, and once located, by using the information provided by the Price Pane and / or the Volume Pane, applying that answer onto other chart days in an effort to 'see' if your answer 'works' for every other exact same scenario - irrespective of market day.

 

HTH.

 

- Spydertrader

Share this post


Link to post
Share on other sites

I'll give the lats from 07/06 another go:

 

0950 lat begins with price moving higher on dec black vol (non-dom). Price exits this lateral in the opposite direction on increasing red volume.

 

1200 lat begins with increasing red volume (increasing over the first bar of pennant 1150) and the r2r2b2r sequence completes within the lat. Price exits the lat in the opposite direction and returns to increasing black volume.

 

1515 lat begins with increasing red volume (but decreasing volume when compared to 1505 first bar of pennant). r2r2b2r completes but the pennant remains active until 1555 bar. 1540 bar does not terminate the lateral because we require 3 consecutive outside closes when a pennant formation is involved.

Share this post


Link to post
Share on other sites

10 July 2009 - the tapes are easier to identify now.

 

Will be away for a couple of weeks. Looking forward to continuing the journey when I return.

 

Good Trading!

es-09Jul10.thumb.jpg.7396079d087e5e60ac1e04cac7a925dd.jpg

Share this post


Link to post
Share on other sites
Guest
This topic is now closed to further replies.

  • Topics

  • Posts

    • Date : 19th Sepember 2019. MACRO EVENTS & NEWS OF 19th Sepember 2019.FX News Today The FOMC announcement that delivered the expected 25 bp cut that was widely expected, but didn’t signal further moves down the line. It repeated will act as appropriate to sustain expansion. BoJ held monetary policy on old for now, but flagged review in October. Australian Dollar slumped on the back of a rise in unemployment at 5.3% from 5.2%. Asian stock markets traded mixed, JPN225 gained 0.58%. The Japanese stock markets up from yesterday’s lows, but below the highs seen early in the session. EGBs rallied yesterday and are likely to remain supported going into today’s central bank announcements from BoE, Norges Bank and SNB . Brexit: UK given ultimatum to submit Irish border proposals by Sep 30. The focus now turns to central bank decisions in Europe, where BoE and SNB are expected to hold policy unchanged, while Norges Bank could dodge the trend and deliver a hike. Charts of the DayTechnician’s Corner YEN: The Yen posted fresh trend lows against the Dollar, though remained just off the lows it saw against the Euro, Australian Dollar and other currencies yesterday. USDJPY printed a 6-week high at 108.26 in what is now the fourth consecutive day of higher-high making. The Japanese currency has been deflating amid a persisting phase of risk-on conditions in global markets. Main Macro Events Today   Interest Rate Decision, Monetary Policy Statement (CHF, GMT 07:30) – The SNB kept policy on hold at the June council meeting. The Libor target was replaced with a key policy rate, but the central bank was adamant that the degree of monetary accommodation remains unchanged. After the ECB cut rates, while the Fed is now widely expected to ease rates, the SNB has little room to manoeuvre, especially against the backdrop of ongoing Brexit uncertainty and geopolitical trade risks. The SNB’s central message remains that the situation remains fragile and the currency “highly valued”. Interest Rate Decision, MPC Voting (GBP, GMT 11:00) – Shadowed by the ongoing political developments in Brexit, the BoE is not expected to proceed with any interest rate actions. Support and Resistance levelsAlways 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. Andria Pichidi 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.
    • Brain Trend Signal Alerts is Client Side VTL indicator that plots buy and sell signals. This follows the short-term trend and is a great intraday trading tool. The indicator identifies the trend changes using candle high lows and Average True Range.  The red arrow appears when a down trend is identified and green arrow appear when trend changes upward.     For best results, Brain trend alerts can be used together with a long term moving average like the 200 period simple moving average. Buy signals are valid when the signal is generated above the moving average and sell signals are valid when they form below the moving average.   The indicator writes the current signal and last trade details on the information panel on chart. When a new signal appear, it raise an alert. BrainTrendSignalAlerts.zip
    • Ichimoku Alert is based on the Ichimoku Cloud charts. This is a simplified VTL Alert based on price crossing the Kijun Sen of ichimoku chart. The Ichimoku Cloud is a type of chart used in technical analysis to display support and resistance, momentum, and trend in one view. The Ichimoku alert takes the Kijun Sen and raises an alert when price crossover happens. This should be used together with an ichimoku chart or other indicators. A signal in ichimoku alert means there is a high probability that a new price wave with momentum can form. For traders using ichimoku charts, these alerts inform them that a trend change is occurring in ichimoku chart and they can switch to ichimoku chart and analyse the situation. In trading ranges, this indicator generates whipsaw signals, so always use it together with other indicators or ichimoku chart. Ichimoku Cloud indicator is available in vStore. Ichimoku_Alert.zip
    • Brain Trend 2 Is a short term signals indicator. It is used for intraday trading. Brain Trend 2 identifies the short term trend using Williams percent R indicator and average true range. When a short term trend is confirmed by the indicator, it plots semaphores on the bar to show the trend. Bars with red boxes indicate downtrend and bars with blue boxes indicate uptrend.   When a trend is identified, open positions in the direction of the trend. When red boxes appear open short position. When blue boxes appear open long position. It is more effective when coupled with other indicators. A moving average can be used as a trend filter.  Set the moving average period to medium term or long term like 50 or 100.   BrainTrend2.zip
    • #EURUSD #ANALYSIS #Forex #followme #socialtrading The EUR/USD pair fails to hold on to recovery gains as it trades near 1.1070 ahead of the European session on Wednesday.   The US #IndustrialProduction and #CapacityUtilization failed to please the #USD buyers as better than forecast prints of the ZEW Economic Sentiment for Germany and the Eurozone gained major attention. Also adding to the pair’s strength was the market’s risk recovery after Saudi Arabian diplomats showed readiness to overcome the recent damages due to drone attack within few weeks. Furthermore, news of the New York #Fed injecting funds through repo market and trade-positive headlines concerning the US, China and Japan also tamed the earlier #risk-off momentum.   #Traders have been #cautious since the start of Wednesday with eyes on the US #FederalReserve’s monetary policy meeting announcements up from 18:00 GMT. However, fresh trade/political headlines help extend the latest risk-on. As a result, Asian stocks report gains and the US 10-year Treasury yield remain around 1.80% by the press time.   Considering the high probability of the US Federal Reserve’s 0.25% Fed #rate, investors will be less surprised unless the US central bank offers less/more or no rate change. As a result, details of the quarterly economic forecast, press conference by the Fed Chairman #Powell and Fed’s Monetary Policy Statement will be the key to predict near-term market moves. The European Central Bank (#ECB) has recently shown its dovish bias and hence any hawkish statement from the Federal Open Market Committee (#FOMC) could be harmful to the pair’s latest recovery.   On the economic calendar, final reading of August month Consumer Price Index (CPI) from the Eurozone and the US housing market numbers could offer intermediate moves ahead of the Fed decision.   #TechnicalAnalysis Not only a falling trend-line since late-June, at 1.1090, but the 100-day exponential moving average (EMA) level of 1.1167 also could restrict pair’s near-term upside, which in-turn highlights 1.1100 and recent low surrounding 1.0925 as key supports.
×
×
  • Create New...

Important Information

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