Never Trust A Single Time Frame

There is a reason I made the Candle Fabricator routine.

Let’s look at what the “86 filter” was capable of picking up on with these and similar premises:

///in order to this week to be the swing low, the week has to make a lower low and 
/// it has to close up by 85 pips and be black
/// or it as to close up by 50 pips, the previous week has to be black and the current low has to be below the previous close by 85 pips 
/// you want to see a tomato wick for a bottom

It looks good, doesn’t it? But what about the current low?

Be a fox and think outside your socks.

If you combine the last two weeks as a bi-weekly candle, it would fulfill the criteria of a long wick at the bottom.

As you can see the original premises already had the idea of reaching beyond the restraints of a single time frame by combining the last two weekly candles to measure a wick that is larger than 85 pips.

This current example needs a little more finesse.

(Close[i+1]<Open[i+1] && Close[i+1]-Low[i]>850*Point && Close[i+1]-Low[i]>550*Point && i>0 && Low[i+1]<Low[i+2] && Close[i-1]-Low[i-1]>460*Point) 

I myself said that it was not a valid low. And it wasn’t until the next week printed and my vision along with my filters had to be re-adjusted to spot Jon and his Wick.

Rather different picture now, isn’t it? Do you still trust candles of a single time frame? I urge you to re-consider!

The slanted contoured lines are the 60 and 100 pip displacements of the 86 terminal for 1/2 and full hedging points – without more numbers on the screen. Pointer over the object, you can read the rest. Those orders should always be there, just in case. ColorBlinD has the last word, and sometimes the last two words. Maybe you can catch me with your brain.

Let’s do some traffic for Brian Hazard as well…