I derive my market reads from my oscillators – more than anything else.

The key to making good algorithmic trading routines is the ability to interpret market conditions accurately. You yourself must arrive at the right conclusions first before you can begin to pass them on to a decision making routine.
Therefore you, the developer are part of the trading system, and as the weakest link, you need to suffer well.


That’s a fine thrust!

I had to start distinguishing between thrusts and stabs. A thrust is an RSI2 move that takes the reading from one extreme to the other with a speed that the Stochastic reading cannot fully keep pace with. A thrust therefore needs both range and speed. It is a move that is quicker than its own shadow.

A stab does get or does not start from far enough (in terms of the RSI2 overbought / oversold side), and so it does not have a strong enough or lasting effect.

Now you can start to be able to identify what is happening, where is the market at in the wave sequence and what is to happen next. Remember, that a move starts with a thrust and end with a thrust.

Once you can point out things like the chink in the armor, the wave 3 bleed out section, you should know how to position yourself, what orders to place / eliminate.

A/C DC stands for Accommodating / Corrosive Digital Current

An overbought/oversold condition can be both harmful – during an opposite polarity market flow – and prone to become the sustainer / protector during a move in line with a current via a function called embedding.

Mean Reversion again?

If the only dead certain trade is the mean reversion, and happens 3-4 times a month, and one reversion would take 2 days on average to play out, that means that 6-8 trading days out of the 20 or so are being spent with these, and the rest of the time the market either does nothing or tries to pull away from the mean as best as it can, then what was your excuse again for not getting with the program?

You know that a mean reversion would come from Bear Zone 1 or Bull Zone 1.

I have been hammering the subject about how the whole thing plays out.

The criteria to the stand alone (Crazy Ivan) S as a vague idea is that it is a last breath, a short and quick burn off the excess. This would mostly appear on the 30 minute chart as 3 candles in the terminal direction.

I myself opted for counting 5 alike candles in a 6 sequence. This does find most of them.

int count5ups(int i){
int counter=0;
for(int bar=i; bar <= i+6; bar++) if(iClose(symbol,30,bar)>iOpen(symbol,30,bar)) counter=counter+1;
return(counter);
}

int count5dns(int i){
int counter=0;
for(int bar=i; bar <= i+6; bar++)
if(iClose(symbol,30,bar)<iOpen(symbol,30,bar)) counter=counter+1;
return(counter);
}