10.3 SCALPER/RANGE TRADE SYSTEM

[madpipa]

Bob & others,

A question for you. Let's assume it is 15 minutes before European open & you are checking pairs for potential trades. The GBPUSD & AUSUSD are both indicating BUYS. USDJPY, USDCHF & USDCAD are all indicating SELLS. The EURUSD is indicating a SELL.

What do you do with EURUSD? Do you faithfully follow the direction of the pivots & sell EU? Or do you say the USD generally looks to be losing strength, so you ignore the EU chart for today as it disagrees with general direction. Or do you have another approach?

Thanks,
Mick

[mobthehop]

Phil,

you can set level 4 & 5 manually within the code - probably 1 and 1.2618 makes more sense. Made the setting an external and set to these values for you to play with

YES, in this thread I think has been discussed Bob. I've played with Mops two separate ones, and his 1-4th level Fibs look useful (the 5th level is too far out there to be useful).

Cheers

[babalu4u]

Phil,

you can set level 4 & 5 manually within the code - probably 1 and 1.2618 makes more sense. Made the setting an external and set to these values for you to play with

YES, in this thread I think has been discussed Bob. I've played with Mops two separate ones, and his 1-4th level Fibs look useful (the 5th level is too far out there to be useful).

Cheers

Great idea mobthehop..... this is my set :
fibs: 0.382, 0.618, 0.82, 1, 1.382
LongADRPeriod =10;
ShortADRPeriod =3;

[babalu4u]

And this blueviolet lines are from levelfind iny 3000 bar...

[xrismak]

Phil,

you can set level 4 & 5 manually within the code - probably 1 and 1.2618 makes more sense. Made the setting an external and set to these values for you to play with

YES, in this thread I think has been discussed Bob. I've played with Mops two separate ones, and his 1-4th level Fibs look useful (the 5th level is too far out there to be useful).

Cheers

Great idea mobthehop..... this is my set :
fibs: 0.382, 0.618, 0.82, 1, 1.382
LongADRPeriod =10;
ShortADRPeriod =3;

I see the value in the 3 pivot extensions per Baluda's indy, supplemented with the 5 levels of Fibs out to the 1.382 fib extension.

This gives confirmation and more weight when a fib and pivot level line up with each other. And it also gives intermediate levels between the main pivot lines to also consider, especially on those days when there are large distances been the pivot levels.

By using Bob's "10.3 test " and the 5 level added to that; all levels appear on the chart at the same time.

Phil

DPhil,

I wish Baluda can code and rework Bob's "10.3 test Indicator" and add the fibs5 level to it with options to show either all five levels or three levels on the Chart, it will make life very easy trading this System.

xrismak.

[xrismak]

skeptics suggest that if we plot enough lines on a chart, prices will reverse at some simply by way of coincidence.

With regards,

Arun

The level of support and resistance - this value price, the intersection of which interfere with some force. This may be the forces caused by psychological mark, the impact of any major players or a lot of stop-loss near this level. It is quite clear that the quotes will cross this line much less than all the other lines that are not support levels. Confirmation of this fact can be found in a lot of literature.

The human brain is a "pattern recognition, predictive memory storage and recall system with its architecture having more feedback loops than decision processing points". Actually quite similar to transistors and their "logic gates" controlled by the input feedback loop, but with many feedback loops, not just one.

The brain's Master and Control Center gives a hard wired massive power to its emotional controls, allowing emotions the ability to process billions of pieces of data at the same time.

Emotions enable us to appreciate the intimate nuances of great music or the feelings we experience from the billions of pixels of a sunset and its beauty. Having vastly more feedback loops into our mental processing creates the flood of emotions which further reinforce what we are feeling.

Logic would have our brain report "I've heard that song before" and "the sun goes down every day" because it can barely process 4-6 pieces of data at a time, with men being able to process less logic than women most of time, because men tend to be myopic and are not wired to multitask.

Our brain is controlled by our emotions; our logic is a slave and a tool for our emotions; despite what Plato argues as the right thing to value more in humans and what should be used as the foundation of our legal system etc.

This is why people smoke when all empirical evidence proves it is killing them; their emotional needs and desires far outweigh their rational mind.

This is why people believe in God when all evidence says such notions are entirely fantasy. And it's why wars are fought sometimes over hundreds of years in contests of "my God is better than your God" (the Crusades); which is all very odd when looked at rationally - all religions have at their core "thou shall not kill".

Psychological/emotional notions in the market are held by the big traders as much as they are by the masses. I may refer to the large banks and corporates as rodents, but in fact they are no less human than we are.

And so when the collective (emotional) mood of big and small traders align, we have a herd mentality stampeding price action and the fundamentals of the market; the rational thinking gets ignored and run over.

Large round number price points, fibs, and pivots are all emotional constructs creating their own reality because big and small money all take them into account. The emotional balance of the market at any one moment in time is easily tipped in favor of price moving one way or the other; almost entirely independent of logical considerations. The fundamentals mean less than the mood.

10.3 works NOT because it is some mystical insight into the inner workings of the market. Rather it works with the long term statistical probability of what normally does happen most days.

Statistically, price really does tend to go the same way it did yesterday, until that day it does not. Statistically it really does tend to move to a fib or pivot point level most of the time.

And price is impacted by fibs and pivots because of the collective emotional decision making of the masses (big money and small). They are a reality we are embracing as having statistical probability in our favor.

All Forex activity is an "AGREEMENT on PRICE, and a DISAGREEMENT on VALUE".

Both sides of every trade have agreed on what price to trade at. Both sides disagree on the value of such a trade; one side committed to beliefs it will go up and the other side committed to beliefs it will go down.

Price is the rational logic component of every trade. The perception of value is the emotional component. Emotions are the driving force as it controls all human brain activity, especially perceptions of "value".

And with 10.3 we don't care.

10.3 seeks out the statistical probability of what is likely to happen; and it tightly manages what to do when it doesn't happen.

Phil

WORD :!: Very True DPhil.

[xrismak]

Dphil,

as you quoted above " So it seems there would be no problems for 5 fibs and 3 pivots either side of the DO/DP lines.

And without the buffer limit problem, I also see value for the yesterday's High and Low to also be shown. A new high or new low for the current day is a further indication of today's price direction.

What ever you two decide, I don't want to lose any of the "10.3 test" functionality at all.
I am with you all the way on this..

xrismak.

[nanningbob]

Per this post here; http://www.stevehopwoodforex.com/phpBB3 ... 564#p30564

If you look at Baluda Code for DWMpivots he wasn't using these standard buffers, so he managed to free himself from this limitation.

Bob, I found where the solution to the 8 buffer limit was being used. It is by our beloved Baluda; who already uses the work around to resolve the issue.

So it seems there would be no problems for 5 fibs and 3 pivots either side of the DO/DP lines.

And without the buffer limit problem, I also see value for the yesterday's High and Low to also be shown. A new high or new low for the current day is a further indication of today's price direction.

What ever you two decide, I don't want to lose any of the "10.3 test" functionality at all.

Phil

If these things can be added as T/F statements so people can choose I would be happy to work with it. Busy day for me today, dont know if I will trade until the USA see you all later.

[Baluda]

Two observations:

1. Babalu4u's Fibonacci set uses levels 0.382, 0.618, 0.82, 1 and 1.382. To my knowlegde 0.82 is not an 'official' Fibonacci level. This should be 0.76. (Let me know if I am wrong.)
2. We like to calculate Fibonacci levels against the symbol's daily range. And because the daily range is an average over several days our old adversay the sunday candle roars its ugly head.

I wil try to find a solution to the last problem. What do we think about the first?

Paul

[SWG123]

Two observations:

1. Babalu4u's Fibonacci set uses levels 0.382, 0.618, 0.82, 1 and 1.382. To my knowlegde 0.82 is not an 'official' Fibonacci level. This should be 0.76. (Let me know if I am wrong.)
2. We like to calculate Fibonacci levels against the symbol's daily range. And because the daily range is an average over several days our old adversay the sunday candle roars its ugly head.

I wil try to find a solution to the last problem. What do we think about the first?

Paul

Paul, Babalu4u in his post admitted it was HIS notion, not a standard Fib ratio.

I love Babalu4u's effort; but my goal is to work with and to anticipate what the traditional values are. That is, the market and the big boy rodents have no concept of 0.82, and so I won't use or trust it.

The levels we seek need to anticipate what the big end of town are probably relying on; NOT arbitrary figures.

0.382, 0.618, 1 and 1.382 are real Fibs; but the next known level of 2.168 seems too far out there, at least for a ranging market.

And I can't find any definition of a 4th level pivot.

Having said all of that; we need to anticipate that time when price breaks free of the last few days ADR, for when it sets a new course for the new trend just breaking out.

I'm suggesting that the 5th level needs to anticipate a new trend. Pivot or Fib; I don't know what it is.

0.82 is NOT useful.

Phil

Usually 1.618 isn't it? Are you familiar with Bobokus' Fib thread on FF?