tech/a
No Ordinary Duck
- Joined
- 14 October 2004
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Short here?
The point I'm making is that this is a great theory.
However in practice because peak and troughs are dynamic this often occurs.
More often than we would like.
The question is which timeframe?
There are answers which can be added to the simplicity of the hypothesis---which is "Common Theory".
Higher highs/higher lows---Great which ones are going to stick?---long enough to make profit.
I can give you plenty of examples. The question is though can we test a system using such Peaks and Troughs using a Momentum filter to profit from Shares
Does that sound feasible??
Its the XJO
But no you cant test it due to the dynamic nature of Peaks and Troughs.
http://www.trade10.com/zig_zag.htm
Doing this will often put you entering just before or as the wave is turning. I'll draw up some examples to show you what I mean.
Can you go into more detail about what you mean by it cant be tested because it is dynamic??
What do you mean by dynamic??
Peaks and Troughs do not move on the chart. Once it is set it stays in place.
Hence it is a fixed reference point and as such it can be tested as an entry point.
Is that what you are getting at by saying it is dynamic??
Can you go into more detail about what you mean by it cant be tested because it is dynamic??
What do you mean by dynamic??
Peaks and Troughs do not move on the chart. Once it is set it stays in place.
Hence it is a fixed reference point and as such it can be tested as an entry point.
Is that what you are getting at by saying it is dynamic??
I thought I had made my point above and with the link above.
Just start trading your/this common hypothesis and you'll soon see what I mean.
If you test it you'll get brilliant results simply because all past Peaks and troughs will and are set in stone.
The next or most current one is dynamic and not set until well after the fact.
This is where the in experienced get smashed.
I know what you mean. But how do you know when a pull back is finished?? You may say i'll enter as the pull back nears the previous trough. But can you code that?? Confirmation is important. What confirms a "Trend"
A lower low??
I've heard stories..
Of Designing systems using zig zag..
On paper the systems look great..
Something any critic would hate..
In reality they fall over in the first week..
This type of system has fooled Many a trader
Because it's the master of the repainter..
tech/a said:The next or most current one is dynamic and not set until well after the fact.
I don't think this is true. He's entering on confirmation that the current pivot is in fact a new pivot. If he's looking to ride a LH->LL wave, the LH is confirmed as soon as a new LL is made, and this is when he enters.
The next peak or trough does not concern me.
Me neither.
Its the CURRENT Peak or Trough which cannot be certain---certain enough to trade off.
We have peaks and troughs at the right hand edge.
Whats this set up indicate?
Long? Short?
Me neither.
Its the CURRENT Peak or Trough which cannot be certain---certain enough to trade off.
We have peaks and troughs at the right hand edge.
Whats this set up indicate?
Long? Short?
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