motorway

You need to think in waves You need to think in context The sun crosses the equator...So is it going to be summer or winter ? When you use the context of where from.... Then you know Wyckoff is a very real method hence it gets rediscovered Try Richard Olsen...Think about climaxes and this dynamic THINK ABOUT PRESS: How to Trade « OlsenBlog Ok another thing then to consider is the increase and decrease of the population of interest.. Which can shift the dynamics and make "where from" less important... What is the tendency of stocks after they have been going up what is the tendency after they have been going down.. Remember it is like a moving picture and also consider changes in the population of interest Motorway

The attachment found here http://www.traderslaboratory.com/forums/131/ask-any-wyckoff-related-question-3879-3.html#post37792 Motorway

45 degree lines were used in Wyckoff's day They only make sense on P&F charts Gann tried to make them work on bar charts because of his view on time ==> That because you knew what the time on a clock would be at ANY time in the future , you could PREDICT . So he squared PRICE and TIME FRAME ( not with time but with TIME FRAME--WRONG ) P&F chart IS a SQUARED CHART of MARKET EVENTS in INTRINSIC TIME There are only real forces that make the BOXES and make the BOXES move. These are WORK and ENERGY, 45 angle is a measure of a certain .probability distribution of the BOXES ( EVENTS ) John DURAND (1926 ) gave it a number and said it was the distribution of MANIPULATION ( as Distinct From RANDOM ) It is also an objective context for momenta ... curvature of the price series ( trend ) and acceleration and deceleration ( changes in TREND ) RDW did not use.. but it IS the relationship of cause and effect ,, and in drawing trend lines.. you end up drawing many at 45 .. because of what it represents ( a reality ) When stocks were in 1/8s this had significance for low priced stocks and BOX size ( 1 pt ) meant for many stocks a P&F chart was a very low resolution chart NOT NOW some things in practise are DIFFERENT.. eg log charts ? ( log BOXES ? ) and yes we can use ( SHOULD USE ) ALL FACTORS PRICE MOVEMENT (in INTRINSIC TIME==> EVENTS OF WORK AND ENERGY ) TIME ELEMENT ( THIS IS DURATION , How LONG demand supply have ball IS important and what they then achieve with it ) Volume and Intensity of ACTION pressure and support.. USE of NESTING SCALES as waves build UP and DOWN.. B% is a type of POSITION SHEET P&F RS is a powerful screening tool and QUALIFYING TOOL.. The Figure Chart... regards FIXED TIME FRAMES as NOISE But NOT TIME in a WYCKOFF SENSE that is an IMPORTANT MEASURE.. TIME is IMPORTANT TIME FRAME does not exist TIME HORIZONS EXIST.. A 45 line is an example of CONSTRUCTAL LAW ( google it ) Motorway Enantiodromia

If you measure OK fine Let's do that with Stocks But He Didn't Did He HE used a Clock instead of a Ruler In Misbehaviour of Markets What Does Mandelbrot Say about Time imo Unless You use Intrinsic time And use Rulers instead Clocks Fractal does not mean as much as it should What is a practical application ? P&F charting One fundamental problem in analysing financial markets is that we’re working on the wrong scale, the wrong time-scale. In other words, we interpret that scale - the spatial, physical time-scale - entirely wrongly. We haven’t got any intrinsic time! So we have to find out what’s meant by the term «intrinsic time» and how it should be used R Olsen. So I see markets as Fractal when seen as they are in their Own Intrinsic Time. We haven’t got any intrinsic time! P&F chartists used it since ~ 1881 and soon realized that markets were Fractal That altering Box Size ( Olsen's Directional Change Threshold --DC ) Did not change the Statistical Behaviour of the Charts... That quote from an article in the Magazine of Wallstreet by John Durand and Discussion is very similar to Richard Olsen's on Intrinsic Time.. Both are saying the Market is Fractal when viewed as it is... Without the distortion of Time Frames" imo. OK first Quote Now take two P&F charts With different Box Sizes And you have exactly the two rulers Now just count the BOXES and Go from there.. Motorway

A Coastline has one interface Where the land meets the Sea Unlike like the Weather Where the Coastline is a Series of ISOBARS nesting within each other like "Russian Dolls" (see recent edition of NEW SCIENTIST ) It is a series of Coastlines --> Multi Fractal There are similar nestings in the Markets There is where BID meets OFFER.... But there are also forces above and below the last price ( Richard Wyckoff ) ready or not to STEP in .. If the Price Coastline SHIFTS So there is the price Curve---> The Coastline But also various ISOBARS of DYNAMIC PRESSURE Edgar Peters Markets are Fractal because of Different Time Horizons Not because of Different Time FRAMES YES there is only the "AUCTION" No Time Frames Just a NOW.. Just THE PRICE curve . But there are Dynamic Forces ABOVE and BELOW ... There are different TIME HORIZONS... These are expectations LOOKING FORWARD and constantly changing.. Motorway

THERE IS A HUGE COMPLICATION ALREADY Unlike other physical processes trading only ever occurs in a moment of NOW whether I buy to hold for the next fifty years fifty months , days or seconds... If I buy or sell,. I do so at the same time as everybody else In fact I might well be buying off someone who only held for fifty seconds THERE IS NO PREFERRED distinct/separate TIME FRAMES ( THAT IS WHY VOLUME IS SO IMPORTANT ) We can nor really represent long term Investors by monthly charts & long term averages and short term traders by tic charts & oscillators or what ever.. WE CAN ONLY LOOK AT DIFFERENT SCALES OPERATING AT THE SAME TIME . imo YES I think most TA is unnecessary and complicating markets go up down & sideways And They are doing it at the SAME moment IN the same moment.. Edgar Peters I distinguish for Time FRAME ( a distorted picture of reality a look back ) To a Time Horizon ( forward Looking expectation , A Likelihood ) For damgermouseb A R/S Approach to Trends Breaks Detection and on you measure volatility in frames of time you get lags you measure volatility in terms of moves --> no lag Motorway

I also think we can expect to much from "FRACTALS" END to END Point and Figure is RENKO ( Interesting exploded form of P&F ) is RANGE BARS ? Ain't ! They overlap and you can not measure anything very well if your ruler over laps OK From Olsen's research OK this is Fractal because it does not matter what the size of r is Directional Change Threshold can be .01% or it can be 5% or nearly ( there are boundary effects ) anything BUT these relationships are ON AVERAGE.. They are useful as measures of divergence , trend , changing of behaviour etc Why are there trends when at any time there is 50/50 chance of movement up or down ? Because the size of moves are not a 50/50 proposition up or down.. My interest ? P&F chartists were doing this over a 100 years ago They called r ---> BOX SIZE and knew that the P&F chart ( call it an intrinsic time chart . or unit chart as some did ) lent itself to such statistical analysis... Olsen's heterogeneous markets hypothesis is important There are four primary trend components ( at least ) causing fractal behaviours They have different trading time horizons But all have to trade AT the same time ( zero lag There are NO TRADING TIME FRAMES ) There is an immediate trend a short term trend an intermediate trend and a long (pull) trend This goes back to DOW and WYCKOFF The activity of the larger scale constrains and has large impact on the smaller scale.. Olsen in his olsenscale uses 100 trend increments But thinking in terms of these four main trends is a good starting point intra day day short term long term Motorway

I would refer people interested in Fractals To the link I posted on intrinsic time You do not measure "coastlines" with a clock BUT a ruler and when you use that ruler . It is end to end.. If you to do use a clock ( a wrong type of ruler esp because it allows overlap and noise ) you so deform that coastline as to destroy any fractal relationships.. So all this talk of 1 min 5 min 1 hour ,daily ,weekly etc Is of no use ... Those increments are too static and coarse.. BIG problem is the incorporation of various volatility lags The clock ticks But the Markets Rhythms are broken when seen in terms of the clock and cycles are APERIODIC eg OLSENS ( FRACTAL ) 17, and counting, scaling laws are revealed only when a ruler is used to measure the price "COAST LINE " and tIME becomes simply what WYCKOFF tells us it was a measure of DURATION... I do not believe you will find true fractal relationships on fixed time scale charts or ones that incorporate overlap ( The ruler MUST be used END TO END ) Motorway

imo unless You understand "Intrinsic Time" and how different reality is from the illusions created by clock time ...... FAR REMOVED Any such research will not get very FAR Fifth Video...>. Intrinsic Time OlsenScale: Video Archive In terms of Traditional Technical Approaches An Intrinsic "Fractal" Methodology would be one of the oldest POINT and FIGURE charting... Which can use high frequency data And log BOXES That making it a type of ( and not necessarily inferior) LOG/LOG chart revealing POWER LAWS. Motorway

Market Dynamics - Relative Strength Point and Figure Charting[/media] here is a site worth exploring Free ebook Tutorial and news letters some very insightful P&F is a tremendous methodology The site refers to RS charts But the insights are applicable to any P&F considerations ( which I include Renko ) With P&F do not ignore the 1 box reversal charts or basic insights of tape reading A recent news letter is exemplary imo http://clayallen.com/MD_NEWS_V8_I41.pdf Books Start with the OLD ones De Villiers & Taylor & Alexander Wheelan read Studies in Tape reading By Richard Wyckoff Also read Mandelbrot & Richard Olsen & Taleb The F in P&F is for Fractal Motorway

Pftrader ? Also--> what is a BUY or SELL signal ? double tops ,spread triple bottom ,bullish signal reversed ? what makes them so ? THE TREND IS WHAT IS IMPORTANT and naturally THE TURNING POINTS Predicting them ( like with a clock ) NO But identifying them ( like with a stick ) YES Those "signals" are part of a trading system that overlays ( utilizes ) the "FIGURE CHART" A Wyckoff trader might well buy underneath those patterns Using "TRUE TRENDS" ( revealed by the fluctuations themselves ) TRENDS confirming to TRENDLINES ( as adjunct ) Congestion Analysis ( IMPORTANT ) & COUNTS Dynamic and Static aspects More of this and less ( lot less ) of BUY AND SELL SIGNALS DOW saw three movements at work TIDES WAVES RIPPLES Wyckoff saw FOUR Decimalization ( quoting in .01c instead of 1/8s ) means we need to give some thought to BOX SIZE there is both more noise and more signal ( think about that ) FIGURE CHARTISTS used 5 box reversal 3 box reversal and 1 Box reversal ( mathematical relationship at work here ) TIDES WAVES RIPPLES I use 4 charts of different scales at one one end is the TIDE at the other the "Speculative cycle" These are all aperiodic ( There is no clock no tide chart ) But they can all be identified and utilized for profit with "Sticks in the Sand "] Never confuse the "FIGURE CHART" with a particular trading system-->double tops /bottoms etc.. In working with THE incoming TIDE --> There are only BUY SIGNALS of different attractiveness.. A "Sell" signal could be a very good one With the Figure chart you have an OBJECTIVE WAVE CHART just made for counting all sorts of things Sticks in the sand and the WAVES motorway

Most important thing is the TREND Why because there are trends IE the BOXES on the P&F chart have memory then The BOXES are not Fluctuations of a fair coin But of a coin where participants place their bets ( take positions ) By running to one or the other side ( hence trends ) ( Some other very valuable analogies should be considered ) The two counts have different "mechanics" Wyckoff ( and de villiers ) talk about interior ( horizontal count ) ballistics and exterior ( Vertical Count ) ballistics Wyckoff ( and de villiers ) used exclusively horizontal count because they were using one box reversal charts as the foundation and they were interested in seeing "CAUSE" Horizontal count = Diagonal Lines ( 1 unit of cause = 1 unit of effect ) Only type of vertical count in One BOX charts is Measured Move With three BOX charts Today see total dominance of vertical count ( RDW used 3 & 5 reversal charts as well but to confirm the one BOX not as foundation ) ( They do not reveal congestion and Cause so clearly ) Why do you multiply by three with Vertical Count ? Not because it is a three box reversal But because of DOW theory of three legs to a Primary Trend An impulsive move off a rejection of the other side ( important VCs are abused) is seen as a precursor ( early savvy adopters and their urgency ) H counts wyckoff gives importance to correct use as well Counts are ways of quantifying important principles at work in the P&F charts IF BOXES are a memory process counting is useful if BOXES are of a fair coin Then Counting is not useful even harmful Are there Trends --YES demand and Supply are dynamic forces and are related to how much demand and supply are already active ( eg memory & Trends ) consider there are two keys that unlock the gold one is the P&F chart itself The second is what scale ( what box size ) IN markets with min bids approaching 0 ( remember RDW min bid was as 1/8 ) P&F filtering is even more important today than in RDW day and he said even then that these charts were VITAL Unlike coin toss charts Charts of active stocks ( sponsorship ) move in diagonal lines ( 1926 ) eg vertical to horizontal there is a relationship that is NON RANDOM So YES ---Count BUT you are not predicting But identifying Counts are a tool qualified by the trend , position in the trend overhead resistance & underlying support ( areas of congestion ) And also consider that counts are qualified by "time" If your chart pauses and corrects in terms of time ( This is T as duration , there is P , V & T T in Wyckoff terms not Gann or Elliot ) That there is cause building on a smaller scale ( WAVES BUILD UP AND DOWN ) motorway

The "Figure Chart" is not standard compliment.. 500pt x 1 chart... I have marked some previous points of support and resistance, some halfway points and the current trading range. Now look at the chart and consider How the campaign is conducted.. Consider what it means that columns are long or short --> without correction ? How a following column confirms or negates . How a statement by one column is rejected by another and how demand and supply assert in turn and then reassert.. It is a dialectical Discussion Every column is a statement ( Bullish or Bearish ) A thesis and then the anti-thesis But never a FINAL synthesis We still only have here the static aspects But , consider how a column can slow and pause before a reversal or could accelerate into the reversal How a column could accelerate from the reversal . or how a reversal could occur as the "swings" decelerate Think of how in a dynamic sense the chart can come to a "dead centre" The chart is a graphic of demand and supply consider what it means when price moves up or down with a series of short columns backing and filling Consider how at times how differences of opinion vanish and large "uncorrected" moves occur How is the Campaign conducted ? ( It is visible right here before your eyes ) These BOXES contain significant amounts of PRICE VOLUME & TIME Every reversal is important every time more or less ground is made is revealing something right then--Something that matters. eg The last column is the most significant reversal since the "TOP" Every reversal is a point of SUPPORT or RESISTANCE The Dynamic aspects are why we can not simply Buy "double tops" or sell "double bottoms" Why we need to identify ( By The Action ) a spring board We could draw more sensitive trend lines But what is the action of tops and bottoms suggesting ? Are the points of resistance still falling lower ? How important is the next column ? Where are the significant zones of previous support and resistance What happens as price approaches or leaves those areas When it meets those areas Some obvious observations any others ? motorway

1937 would have had another name or even joint author Being I assume the second revised course Richard was working on before his death which was in 1934 There is Wyckoff Inc as well Author WYCKOFF (RICHARD D.) INC Registration Date 11Dec34 Renewal Date 28Dec61 Registration Number AA168408 Renewal Id R287962 Renewing Entity Wyckoff Associates, Inc. (PWH) Would not matter that Alma died. or Richard . Copyright continues on for a certain time depending on the year of production etc eg pre or post 1978 post 1923 I think are some of the key dates ... motorway

Wyckoff material being discussed here was all produced after 1923 And I would be surprised if copyright was not renewed Here is a long list for example Copyright Renewal Database: Search Results Original renewals seem to have been made by Richard's widow But I am sure I have seen even later renewals.. motorway eg Registration Date 23Sep33 Renewal Date 14Feb61 Registration Number AA128792 Renewal Id R270982 Renewing Entity Alma W. Wyckoff (W) I would guess all copyright is today owned by SMI Such copyright I think lasts 95 years from Author's death But I am no expert,,

A loose quote from RDW....He is talking about the adaptive nature of the FC compared to the static nature of the vertical line ( A BAR in a Time Fame ) Fixed Time intervals march across the horizontal Axis They can give a false sense of predictive power I can always tell you what the time will be at any time in the future But I can not tell you how many reversals there will be on the FC That is intrinsic time . Time that speeds up and down It is work done ---> Energy being transferred A modern Figure Chartist ( he seems to realize it too )---> Why do it ? why are (RDW) Both types of charts VITAL Richard Olsen----> The Figure Chart is not out of date It is mainly just misunderstood Differences of opinion impact on the "floating Supply" The adaptive nature of the FC means that it's velocity is directly determined by these differences of opinion We do not need so many shares to "change hands" Because the Floating Supply is a fluid quantity Which the Fluctuations Themselves impact on and change ... YES there is change of ownership strong and weak hands But there is also the crystallization of sentiment and the building of value ( or opposite ) Value is a slippery concept For our purposes it is built up and torn down by the "fluctuations" The FC is always moving to and away from congestion From areas of Risk and Reward Cause expended ( extended ) and engendered Where are the ENTRY points ? The structure and the dynamic will reveal motorway

OK If the chart was a chart of coin tosses ( fair coin ) halving the BOX size would result ( On average ) in a doubling of the columns ( obviously the height ) The FC is also a superior map of volatility What do the waves do ? They build up and down ( magnitude not direction ) Sometimes the number of reversals will not change much Because there are large forces at work and the volatility on the large scale is constraining and containing the volatility on the smaller Often ( when liquidity does not disappear ) There will be more "Information" unfolding on the smaller scale ( Like this 1000 pt chart compared to the 2000 pt chart ) Obviously this is a manipulated market On the 1000 pt chart there are hollow spaces that the chart has flowed around This today ( Fractals ) would be called the lacunarity.... It is a pointer to the fact that there are forces of a larger scale impacting ... We must think how markets are different today than in the day of RDW ( PRINCIPLES do not change ) eg decimalization & price levels The chart itself will inform us what scale we should be looking at ( consider if when we had halved the BOX size . We only produced the coin toss chart increase of the number of reversals or less even ) The empty spaces are important in this respect too... Many today are interested in fractals & chaos etc Figure Chartists did not have the same terminology But They did have the TOOL.. (many spouting fractals today DO NOT ) On the comparison to coin toss charts and probabilty of runs and the different behavior etc A series of articles in the Magazine of Wallstreet in 1926/27 examined these... OK People might be getting the idea That there is more to the FC than is obvious . Certainly much more than is found in modern descriptions motorway

Markets are Manipulated Participants do not passively observe something separate to them. Participants Observe and Participate Causing feedback loops & non linearity and also chaotic edges.. The BOXES on the FC are woven by Price Volume & Time We need not consider any of these separately in order to utilize the chart ( compare Eigers chart & the 1000 X 1 chart ) The FC is an adaptive chart ... Boxes are filled at what ever velocity and with with what ever constituency that the tape determines eg Think of the FC moving slowing with BOXES heavy with Volume versus moving with great rapidity and lightness ... The FC chart adapts to the action... This is the difference between intrinsic time and clock time.. Congestion areas build "CAUSE" by resolving differences of opinion and changing the floating supply... one unit of cause produces one unit of effect Hence in a manipulated chart ( ie as defined above , A non random chart ) There will be movements over a cycle ( accumulation ,markup, distribution & markdown ) where the aggregate reactions total 50% of the aggregate movement in the trend direction.. one unit of cause = one unit of effect---> the natural inclination of the chart is to move in 45 degree diagonals ( This observation goes back a long way.. But is seen today in so called "Bullish'' and 'bearish" support and resistance lines of what is known as chartcraft P&F.. Also consider Gann angles ( wrong sort of time ).. This movement has to do with the adaptiveness of the chart.. It can simple stop while differences arise and then resume when they resolve.. Moving in "Stair steps"... RDW did not draw explicit 45 degree lines But they are implicit in his quantification of cause and effect and it is not a particular line but an inclination... On these charts I have drawn some trend lines determined by the action itself There is only one way that a trend-line is crossed on a FC The mere passing of time will not cause a crossing to occur.. The chart is a chart of EVENTS and RESPONSES NO WORK---> no movement. - Ok Eiger's chart has the same dynamic as the 1000 x 1 chart Interesting We look for points of resistance We look for reaction back relative to the half way points We identify trading ranges We observe the ground made and retained or lost ( what is increasing ) and when active or dull. The 1000 pt chart has a series of step backs A sideways trend a reaction back that allows us to draw our trend line OK Hit a button there somewhere have to Post the charts and more to follow Motorway

When something is both simple and profound .. We will need many analogies to see all sides and possibilities.. The FC is a non linear digital filter This is the perfect tool ( RDW wanted precision instruments ) Because sometimes the signal is noise and sometimes the noise is signal The one box reversal is the foundation it is the immediate trend It is always following the "line of least resistance" not in a time frame But in intrinsic time ( wait for it ) WITH NO LAG... We need no Moving average to remove periodicity to reveal trend We need no bollinger band to see if volatility is contracting or expanding Certainly NOT any momentum or rate of change indicators The "Figure chart" is always revealing velocity ( ROC ) It is always slowing down and speeding up. Stopping and starting so as we can get on and off.. What is wrong with all those time based indicators ? They are always non optimised and they always LAG.... NO LAG ? But there are only whole numbers----> "Why are there only whole numbers for price this way only waves made by whole numbers are visible. Units of price is 1. So for example: 44, 45, 46. There should be less waves if the units are bigger then 1 (44, 46, 48) and more waves if the units are smaller then 1. Theoretically it can be even made continuous. Does this even matter?" Very good question . To expand.... Does it matter to your HD 1080P TV ? This is a question of meaningful scale... With the 2000 pt DOW chart From this distance ( scale , magnitude related to time horizon ) You would not see any movement that is smaller than 2000 pts Think ! We are on the moon almost looking at a great river on the earth At this scale the immediate trend is 2000 pts.... Eiger's charts-- Without scale or notation ? His charts could be the 2000 pt DOW chart and mine could be one session on the S&P emins SCALE INVARIANT With one caveat----At the smallest scale , at the bid ask spread ..There are No longer smaller waves as building blocks there is No "FRACTAL DEPTH" --- With a one box reversal chart the next box ( If random ) has a 50% chance of being UP or DOWN.... So we need two consecutive Boxes to define an up or down trend/wave or move = The immediate trend The three box reversal chart is a special condensation , It condenses the horizontal aspect of the chart ( Hint---> Some of the Empty Spaces ) While retaining the same unit of RISK and REWARD.. It is the Intermediate Trend . It takes Four consecutive Boxes to define ( or change ) an Up or Down move ( Think of the coin toss chart again ) Four is twice Two ( The One Box Chart ).... You might like to think of what a Five reversal chart needs to define an Up or Down Move * Non Linear * No Lag * Always Optimized ( at a particular scale regardless of time frames ) Please read the Wyckoff PDF of Figure charts, look at the construction rules. Does Volume lead Price ? Does Price lead Volume ? This is the realm of effort and result... ( hint) There are two sides to the buy sell spread.( so ).Price and volume follow each other effort and result are Effects In the beginning is Cause ( more on this later ) The FC is the Cause and Effect chart. And a picturization of the TAPE itself So it is a graphic of the LAW of Supply and Demand ( when demand overcomes what happens ? When supply ? ) Wyckoff is interested in the patterns of demand and supply of conditions that lead to outcomes He is not interested in mechanical patterns The river exists as a river because of certain stable recurring forces at work ( Laws ) But We really can not step into the same river twice ( who said that ? It is very Wyckoff ) Our aim is to recognize conditions ( causes ) Not look for mechanical patterns Before we move on to the 1000 pt chart Here is the 2000 pt x 3 The intermediate trend is Up ( at this scale ) Question to consider -->Just what are these boxes made / filled / WOVEN with... motorway

Hello to Eiger and Atto &Tape and everyone else OK The 2000 pt Dow chart ---> Who has tried to interpret it ? It is a One Box reversal chart... A chart of the immediate trend The immediate Trend at this scale ... The trend is up with the Second Box , THINK ,To define the immediate trend We need two consecutive BOXES in the same direction. Consider a chart drawn from the tosses of a fair coin ( This is very important to consider... We use this chart as a manipulation detector ) The minimum Run is HH or TT ... HHT what is the trend ? HHTHH ? HHTHHHHT ? --> all three the immediate trend is UP On The ( entire history) DOW chart there is a move up of 6 boxes This "coin" has flipped 6 heads in a row ( Question is this a fair coin ? ) There is then one box back ( NOT A CHANGE OF TREND ) DEMAND reasserts and then there is a RISE of 3 boxes We have had a 8 box move without a corrective counter trend But a step back ( like a test ) With demand reasserting. ( If this was a FAIR COIN , You would expect a Run of at least 6 Boxes only 1.6% time with a one box reversal chart) There then is a REVERSAL SUPPLY OVERCOMES DEMAND and There is a THREE BOX counter trend ( very significant, we could already condense this chart by making it a three box reversal chart.. The fact that it has reversed 3 boxes is significant ) And where are We ---> AT THE HALFWAY POINT.... And not only, BUT where Demand was seen to reassert At a POINT of PREVIOUS SUPPORT ------ Support and Resistance--> Where is it . what is it . A dynamic analogy is of a River...Where does a river meet RESISTANCE ? WHEN it does what happens When it break through ? When it is turned back ?---- Read Studies in Tape reading The P&F chart teaches us that "RESISTANCE"" IS ALWAYS up ahead and is always being met and overcome ( OR NOT ).. What are we interested in --> The Composite Man The P&F chart is tied around his ankle... he is the one that draws the chart he determines when the columns change ( SEE -->NOT ANY ARBITARY TIME SCALE ) ---- I will soon post the 1000 pt chart--- WHAT WILL HAPPEN ? eg If the chart was drawn from coin tosses how many more columns would appear on average ( so aggregating 1000 tosses instead of 2000 ) ? What does it mean if we get a very different number with this DOW chart ? A very good question is always -->How would a random chart behave ( hint --> while there would be congestion patterns there would be NO CAUSE--> The Boxes would have NO MEMORY ).. One more point the ground is as important as the figure ie the empty spaces...The River flows as it does because of landscape What does the "Figure Chart" flow through Every BOX is a POSITION.. POSTIONS are made, maintained and changed... The chart is very simple Simply PROFOUND Much to Talk about Motorway

With Wyckoff There are three Types of chart The vertical line OHC chart The "Figure" chart P&F & Then the wave chart Why are there Whole numbers ? We live in a Digital Age. Where all sorts of streams and structures are turned into digital Units of 1s and 0s.. This is very useful ... Figure Chartists entered the digital age in the late 1800s converting the stream of transactions into digital units of up and down. When the unit is changed the resolution is changed As is frequency and amplitude ( like bit rate ) and time.. The figure chart is a non linear digital filter The question of scaling is important and serious We need to understand what happens ( what is revealed ) when we modify the BOX SIZE and/or change the REVERSAL... And how charts of different scale co ordinate with each other IF the box size was equal to the the bid ask spread the chart for a full market cycle eg 2003 to 2009 would be enormous . It would be a valid chart ( only if our data supported this resolution though ) But only useful for trading moves of that Box Size relevant scale. P&F is a good teacher ... We always trade moves .. not time frames The Figure chart is the CAUSE AND EFFECT CHART NO CAUSE NO EFFECT.... More important than EFFORT AND RESULT Think on this, Wyckoff measured Cause by digitizing the swings in the trading range He did not measure Volume --> Change of Hands --> But change in Expectations . How do you scale the Figure chart... One way is to scale in relation to trading range amplitude .... The trading range of interest at the scale you are operating on Another way is to have a universal scale to use as a screen for opportunities to explore Another way is to determine what particular scale the most information is unfolding on ( yes we can do this ) eg Is large scale volatility containing the small scale.. Or are new emergent trends arising form the smallest waves.. Is light a wave or a particle ? is it continuous ?? Are the waves of buying or selling ?? Or at bottom are they more like a series of explosions ... Does this matter ... Yes and No because the Coastline is always the same.. Just depends on what scale we want ( Scale not time frame , We trade MOVES ) The starting point is the first trade The ending is the last Box The "Background" or context is everything in between However the various phases and points of interest ( prominent features of the coastline ) where Cause is generated and expended... Are natural starting and end points "CHAPTERS" OK ... For the Fractal Doubters... IF Wyckoff had that word available he would have used it. His writings reveal he knew all about scale invariant... Now what do you do with something like a coastline ? You cover it with BOXES to compute the BOX counting dimension A measure of complexity or Fractal Dimension.. OF roughness of ( what are the MOST important features of the Figure chart--RDW ? ) CONGESTION... A figure chart does this automatically We do not need to work out how many Boxes make up ( cover ) the Coastline .. We just need to count them and observe them---> Because they reveal ( They do not conceal ) A Figure Chart... never has to move and never has to move sideways ever. Here is part of its "secret" and why it is different. movement always means something movement is WORK Figure chartists and Wyckoff were very fond of Mechanical and Physics type analogies eg "we find many interesting and constructive analogies" RDW "The Forces of supply and Demand can be compared to the mechanical forces of pressure and tension" RDW. Wyckoff used one point charts as the standard for stocks that were not too high or too low But knew that often we would have to use a different size Figure chart when warranted. motorway Here is a chart of the DJIA it covers 100 years Box size is 2000 points We can see that the DJIA on this scale is in a trading range ( Anyone trading moves on this scale ) Now is there more useful information at higher resolution ? We will have to see as we approach this Coastline from such a great height But there it is in its structual integrity . If we zoom in,,, We will find that Fractal really has meaning and that the Coastline is the same Coastline ALL THE WAY DOWN. Such are some of the static aspects of "" FIGURE CHARTS " There are also the Dynamic M

Price does not unfold in equal units of time It unfolds in WAVES I recognize the sentiments in your post TapeReader and your point of distortion of Price Vs volume.. “How long is a coastline?” The surprise answer is an infinite answer. In other words it can be measured over and over again with different scales of measurement producing different answers.. Welcome to the world of fractals ( The F in P&F ) Price movement creates a graphical representation that is similar to a coastline. Based on this similarity, it only makes sense to measure price movement with the same approach as a coastline. How do we measure coastlines and Mountains With a clock ? What happens if we do ? ( There no longer is a coastline or mountain ) Fractals model complex physical processes and dynamical systems. The underlying principle of fractals is that a simple process that goes through infinitely many iterations becomes a very complex process. Fractals attempt to model the complex process by searching for the simple process underneath. What is the simple process at work in the markets Waves of buying and selling That push prices up and down ... They involve volume. And they have certain duration. But ALWAYS involve a move up and down Waves build up and down Most fractals operate on the principle of a feedback loop. A simple operation is carried out on a piece of data and then fed back in again. This process is repeated infinitely many times. The limit of the process produced is the fractal. Almost all fractals are at least partially self-similar. This means that a part of the fractal is identical to the entire fractal itself except smaller. Fractals can look very complicated. Yet, usually they are very simple processes that produce complicated results. We start with the smallest waves... They look very simple, these waves join-->condense, build into large waves ( A two way relationship here forms large to small ) OK The Point with P&F is this The basic pattern is of fluctuation ...The chart is made up of units of fluctuation Think about this very carefully If one column goes UP the next will always go down Always --> condense the chart ? Though four columns become two.. The self similar pattern remains The same coastline remains one column goes up and the next always go down The coastline retains it's structure always... Think of looking at a mountain from different distances It is Always the same Because the up and down are not being deformed by time Even if we made a complete Bull and Bear market into a Two column P&F chart It would still be the same coastline or mountain with the same pattern of Waves . This is the only pattern RDW is interested in . Not mechanical appearances But The pattern of buying and selling of the waves this requires the use of JUDGEMENT...... OK not off topic I hope ----> POINT many of the so called,Fractal Chaos cutting edge do dahs DO NOT COME CLOSE to the simple clarity of the P&F chart or its power to reveal the true structure of trend Wyckoff P&F is like Wyckoff anything Waves of buying and selling But no matter how the P&F chart is condensed The way up is the same as the way down The mountain always is the same mountain Just smaller or larger in scale Units of fluctuation of risk and reward In a very real sense units of WORK Work is what creates future High and lows ( The Wyckoff CAUSE--> The building of expectation ) A P&F chart follows the waves of the market as they travel Through Time Frames .The P&F chart is not trapped in a time frame.. motorway

All Charts are a form of short hand Wyckoff said you were better of not to use one IF you had a memory that could hold every transaction in every stock in relation to each other ( Impossible ) The tape unfolds in continuous time How to condense this over whelming coast line of prices So we can measure and utilize it Most charts uses time cut the tape into equal intervals of time open ( start ) close ( end ) P&F does not condense the tape with equal amounts of time It uses something else that makes it very different P&F retains the structure of continuous time It is always the same coastline The way up is the same as the way down ( This is lost as time is used to condense the tape ) P&F is a method of looking at prices which has a nature similar to the time/distance equivalence in Einstein's physics. Time on a P&F chart is the speed of the postings ( same as the speed of the flow of transactions on the tape ). Time on a P&F chart contracts and expands so as to keep the structure of the tape/continuous time. ( This is so regardless of the degree of condensation . The tape does the same thing as it speeds up and slows down) The way up is always the same as the way down on a P&F chart because always it is full cycles of up and down that are condensed equally. ( With time this is not so .The more the chart is condensed the more distortion . It is no longer the same coastline ---> This as ramifications trend illusions appear ) Wyckoff said you will do better with a P&F chart as you operate on larger swings .. De villiers was a close associate of Wyckoff De villiers P&F is like the VSA of Wyckoff P&F De villiers split with Wyckoff and tried to make it more mechanical and pattern based ---> The Fulcrum P&F is not out of date It is just not understood and often seen to be like a deformed bar chart. But as you condense continuous time into clock time It is the bar chart that is deformed and is deforming What is deformed ?---> Time --> Intrinsic (continuous) Time.. What happens, when you measure distance with a clock instead of a ruler. Time is Space (---> movement through space ) Postion---> The rate of change of postion motorway First post on the forum So hello to everybody.