parisboy, thank you for kindly and generously sharing your knowledge Much appreciated.

Analysis and Trading based on Envelopes, Waves, Cycles

Here's an interesting and useful article by a mathematician on the topic of exact numbers (such as 1.6180339887...) versus what actually appears in nature: url

Analysis and Trading based on Envelopes, Waves, Cycles

Thank you I appreciate the connection to the Fibonacci series, the Golden Ratio, and the logic of natural proportions.

Analysis and Trading based on Envelopes, Waves, Cycles

I find that regression channels fitted to the time scale work well. So 30, 120, 240 or 60, 240, 480 for a 1 minute chart.

Analysis and Trading based on Envelopes, Waves, Cycles

That's a beauty!

Analysis and Trading based on Envelopes, Waves, Cycles

Which seems to verify my intuition that it is about the proportions rather than the exact numbers. No? Instead of doubling, you could multiply with 1.4, for example.

Analysis and Trading based on Envelopes, Waves, Cycles

And in that chart, how did your method enable a short entry, please, if you don't mind spelling out the details?

Analysis and Trading based on Envelopes, Waves, Cycles

And to what extent is that principle empirically verified? Or is it based on a priori assumptions? I think of the Golden Ratio (1.6180339887...) which is prevalent in nature, music, and art. There it's a question of proportions, not exact numbers.

Analysis and Trading based on Envelopes, Waves, Cycles

Upon reviewing this, my finding is that it seems to work well in trending markets. But from a day-trading perspective, where a morning session, say, can be ranging rather than trending, or where moves are swifter than in the slow build-up of trends, ...

Analysis and Trading based on Envelopes, Waves, Cycles

Yes, in terms of proportionality that seems to fit markets remarkably well. But I wonder about the exact numbers. 32, 128, 256 could equally well be 30, 120, 240, or any other triplet that best fits a particular market. Is there really an a priori ...

Analysis and Trading based on Envelopes, Waves, Cycles

Excellent. Thank you. Better safe than sorry, I guess. I shall review my charts with the Mid-Band Transaction Timing principle in mind.

Analysis and Trading based on Envelopes, Waves, Cycles

Thank you Brilliant example of how to take advantage of momentum late in a trend. But here the 11 degree line appears reliable only after having been established by the first two touches. Then when price comes back it is well supported, and one ...

Analysis and Trading based on Envelopes, Waves, Cycles

Thank you very much for kind instruction I am glad that my example was useful to that end. I have mixed feelings for trendlines as trading tools. Already at point B, both the red and the green channel are pointing up - and price is touching ...

Analysis and Trading based on Envelopes, Waves, Cycles

Not that I was asked, but here I go, as this approach has inspired me greatly. I see this approach as a way of capturing the natural cycles (or waves) of the markets, which go on on different scales - much like the harmonies in music, for example. ...

Analysis and Trading based on Envelopes, Waves, Cycles

Not a day for trading, really. Yesterday's drop takes some time to digest.

Carpe diem: Intraday tactics for Dax and Dow

Yes, except regression is less of a lagging indicator than moving averages. For example, it tends to stay in the middle of price action rather than lie under it in an uptrend. A lot of the time you get signals from LRs before the MAs have responded. ...

Carpe diem: Intraday tactics for Dax and Dow

Thank you It is remarkable how well these models work, also for target setting. Here's Black Monday 1987 and the DAX drop this week. Also, I am indebted to parisboy for inspiration. Merci mille fois!

Carpe diem: Intraday tactics for Dax and Dow

All regression channels. Here on a DAX 5 minute chart, and on a DJI 2 hour chart with buy opportunities highlighted.

Carpe diem: Intraday tactics for Dax and Dow

Fundamentals aside, when the market has accelerated way above its channel like this, this has historically always meant increased volatility and eventually a correction. My recently developed regression model nailed the top nicely. It will be ...

Carpe diem: Intraday tactics for Dax and Dow

Some snake-oil sales comedy: url

Carpe diem: Intraday tactics for Dax and Dow