Results 1 to 10 of 10

Thread: Smoothing up Price Action

  1. #1
    Senior Member
    Join Date
    Jan 2012
    Posts
    166

    Lightbulb Smoothing up Price Action

    Hi,

    I want ask you guys another question about smoothing up price action in order to find valid pattern, i've noticed that often when you ignore short time price deviations you can find nice setups, like todays bullish Gartley on GBPUSD M30.



    So my thinking is this: instead of rejecting pattern because of short deviation, simplify it and trade anyway, what you think about it? anybody found and traded this pattern today?

    and gartley on EURUSD M30



    drap
    Last edited by drapichrust; 02-06-2012 at 05:32 PM.

  2. #2
    Wizard
    Join Date
    Oct 2011
    Location
    A, A
    Posts
    2,573
    explain please what you mean by "smoothing up price action"
    btw; i did trade EU long.

  3. #3
    Senior Member
    Join Date
    Jan 2012
    Posts
    166
    I always thought that pattern have to be nice and obvious, in above EURUSD chart after C point we can see little mess, price actually go up (exceed C point which I have selected) and sharpy go down, I always thought that points can be designate by price extremum so I've project price from those points and it wouldnt work this way, but in this case we choose to use other point and dont know is it game like 'minds sees what he want to see' or we can tolerate this kind fo deviations?

  4. #4
    Wizard
    Join Date
    Oct 2011
    Location
    A, A
    Posts
    2,573
    from my experience, we can tolerate some deviations.

  5. #5
    ole
    Guest
    Many software packages include a zig-zag function which finds the pivots within a specified tolerance (e.g., 2%). Whether one uses something along the lines of zig-zag or manually, fwiw, I have found that sticking with a maximum allowed deviation works best over the long run. This is consistent with drapichrust's comment about using a "clean" pattern.

  6. #6
    Wizard
    Join Date
    Oct 2011
    Location
    A, A
    Posts
    2,573
    Quote Originally Posted by drapichrust View Post
    I always thought that pattern have to be nice and obvious, in above EURUSD chart after C point we can see little mess, price actually go up (exceed C point which I have selected) and sharpy go down, I always thought that points can be designate by price extremum so I've project price from those points and it wouldnt work this way, but in this case we choose to use other point and dont know is it game like 'minds sees what he want to see' or we can tolerate this kind fo deviations?
    welcome to the real world Of course you are right. I do it most of the time. If the pattern is so clear, it's obvious for everyone, ... so it's obvious also how to get the many from everyone

    The more tricky the pattern, the better. That is why pattern recognition software often missed good patterns. This is also why we have 10 different Gartleys configured in AMP, and still not enough.

    Same with the Elliott approach actually. The real Elliott PROs love and trade the COMPLEX corrections.

  7. #7
    Senior Member
    Join Date
    Jun 2012
    Posts
    420
    Thanks, I might got the idea. I quickly ran through the pics shown by Carney in his books, and I have seen, that some patterns look "messy" as well (to my eyes at least).
    Thinking of it, I might think of another question... messy or not the pattern is, have any of its points were invalidated by a messy move, or it is still a valid pattern. If it is still valid, go ahead, if not scratch it.
    Would this be a correct approach?

  8. #8
    Senior Member
    Join Date
    Jun 2012
    Posts
    420
    Then of course one might start to argue about the body of a candle or the shadow counts... I dunno, but for any ZigZad I have seen and therefore any automated system based on it the shadow would count.
    Any thoughts about this?

  9. #9
    Senior Member
    Join Date
    Jun 2012
    Posts
    420
    Smoothing up Price Action-usdjpyh1-0720line.jpgSmoothing up Price Action-usdjpyh1-0720candle.jpg
    Here are the two pics to show what I mean.
    It has never occured to me to look for someone who uses line graph for harmonics. Neither I have ever checked what exactly the line represents ( I would guess closing price, but being lazy and also not using it, I have never checked).
    So, my question would be, do you think we would come to the same harmonics using e.g. the line graphs? Just a thought, if this is a crazy question, sorry...

  10. #10
    Wizard
    Join Date
    Oct 2011
    Location
    A, A
    Posts
    2,573
    yes, you can build harmonics on the line charts, based on the Close prices.

Similar Threads

  1. Nial Fuller Price action videos Youtube channel
    By kidrock82 in forum Tutorials / Courses / Webinars / Books info
    Replies: 3
    Last Post: 07-16-2012, 02:46 PM
  2. Reading and Trading Price Action with Supp/Dem Video
    By trademonster in forum Tutorials / Courses / Webinars / Books info
    Replies: 0
    Last Post: 04-24-2012, 04:43 PM

Tags for this Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41