walterw

Sundowner`s chart got me inspired... so I feel making a video could help to start showing some real live situations here... I hope this starts to make sense... I dont know if I am being enough clear... please dont hesitate to make any questions, I am also learning together with you guys... cheers Walter. Some Trade Examples.swf

there might be something working wrong there as for me it appeared as a rotating star like icon... no worries unicorn...

Gorgeous charts there Sun ¡¡ well sometimes its tempting to use the oscillator for timing... but vma`s on 1 min will normally do a better job... the oscillator its just an easier wave reader sort to speak... How many pips you could had cashed there ¡¡¡ wow man... love to see others charts ¡¡ keep them coming... videos also welcomed with your experiences and also questions as well ¡¡ cheers Walter.

Bruce : the Vwap indicator is like a moving average... for its calculation I copy this explanation from Jerry : In order to shed more light on this, I want to introduce the concept of the volume weighted average price or VWAP. The VWAP is a well known quantity used by institutional traders to gauge there trading performance. It's use as a day trading tool however has not been fully explored. The VWAP is simply the average of the Volume Distribution Function. The figures below show examples. The red line is the PVP of the distribution and the light blue line is the VWAP for the distribution. To compute it, take the volume Vi for each bar i in the distribution, multiply it by the bars price, Pi, compute the sum, SUM(PiVi) and divide by the total volume, Vtotal, for the whole distribution: VWAP = [sUM (PiVi)]/Vtotal The VWAP has the following characteristics: 1) Being the average for the entire distribution, Volume traded above the VWAP is identical to volume traded below the VWAP. In terms of the distribution function as a probability function, it means that when price action is at the VWAP, there is equal probability for price to move up as there is for price to move down. then adding the Standard deviation bands from vwap would make the picture more complete for the trader as Jerry shows a lot of strategies from this bands here is the formulas for the bands described by Jerry : While we won't address all these questions in one thread their answers can be obtained by analysis of the volume distribution function. To do so requires that we introduce a third property of the volume distribution function called the Standard Deviation of the VWAP, SD for short. SD is computed from the following equations: where the summation subscript i, runs over all prices in the volume distribution pi = ith price in the volume distribution Pi = vi/V is the probability of occurrence of price pi vi = the volume traded at price pi from the volume distribution V = total volume for the entire distribution That's a mouthful. If you would like more details about the variance and the standard deviation, see the wikipedia reference http://en.wikipedia.org/wiki/Variance and references therein. So what does the Standard Deviation tell you? Well for starters, SD tells you how far you can expect price to move away from the VWAP. It can be shown (but we won't prove it here ) that computing the SD with respect to the VWAP gives the smallest expectation of price movement. basicly having this two indicators, it should give us a chart that would look something like this : but on a forex chart.... About the pvp... its a MP type indicator that already exists for mt4... no programing needed there... The challenge would be to program vwap and the SD`s from vwap... This levels have a very good performance for rejection strategies, if we combine that with the 1 min universal timing with vma`s it would certainly have a very high rate of succes... I am very positive about this idea... I dont know if this explains a little more what I was proposing... cheers Walter.

Oh Ok... good... I am also flaged ? jejejej.... cheers Walter.

Well OAC, on this ocation I DO SUGGEST not to flag this guy... He does not sell anything and has good intentions, also he has very nice methods to share... so I dont see the point of getting this profile banned... thats my view on this case... we have to be very carefull on some particular cases... this guy is very used to make his teachings via a tradingroom... so he is inviting for free to his teaching... I dont see the spam there... cheers Walter.

Here is a video trying to explain what to read on this oscillator... Basicly he should be a visual aid to make more easy the understanding of wich wave we are riding on the moment and what to expect next for an inflection.... he is NOT used for timing, as the timing is done on the 1 min chart with our super vma`s... he only help us like a compass to tell us on wich wave swing we are riding, be it up or down... hope this brings more light on the issue.. cheers Walter. More about the Oscillator.swf

I made a visit to dynamites chat... very nice indeed... no spaming here Mods... good guy, sharing very interesting methods... Going to some of his seminars would be a good idea as well... so again, lets not be alergic to good people that come with good intentions of sharing... Of course I would encourage him to share eventually some stuff here at TL... that would be awesome... cheers Walter.

Good Blu-Ray... thanks for your great inputs on TS.. cheers Walter.

I will try to update that thread as well... cheers Walter.

I will do new video about oscillator... about the physical meaning, Pyenner knows more how he was really built, what I know is that he is an hybrid between cci and other momentum and volume oscillators... cheers Walter.

Here goes indis and template for the 1 min chart... cheers Walter ADXVMA6_4bar.mq4 ADXVMA6_6bar.mq4 chimp 1 min chart.tpl

Blu : you can use Linear Regression Curve 9 on TS and you will get the same line as tlomi... cheers Walter.

Armand... the oscillator has a very periferical function on the entire equation... I will do a video just about that sometime today... cheers Walter.

good question Unicorn... actually I am on a research stage on forex... one of my ideas is to have a series of diferent "setuping" alternatives on the 5 min charts and use the same universal "timing" method on 1 min... so far on 5 min "vmar Icons" and "chimp trend trades" are very nice setuping alternatives... I even have aspirations to add Jerry`s statistical methods to the 5 min menu... What I find as a true evolution on this research is the universal timing method on 1 min wich is a terrific simplification and optimization of the hard timing issues... So whatever 5 min method you use, the 1 min timing would be the same... so answering your question, "vmar icons" on 5 min is one of my predilect setups on my arsenal as well.. maybe I should keep posting on that thread the latest examples with our new 1 min univerasal timing... cheers Walter.

Interesting variations here Bruce... I was wondering if I would ask you or not... I dont want to abuse your great willigness... but I see your great inertia on the programing thing and the chimp has some paralel research ideas that could really be very cool... Let me tell you what I have in mind... I would love to translate Jerry`s great statistical method into forex.. here are some of his threads : http://www.traderslaboratory.com/forums/f6/trading-with-market-statistics-i-volume-1962.html http://www.traderslaboratory.com/forums/f6/trading-with-market-statistics-ii-the-1990.html http://www.traderslaboratory.com/forums/f6/trading-with-market-statistics-iii-basics-2008.html etc until... part 10... If we could get vwap and the sd`s of vwap coded into mt4... wich I believe is not great deal, we could have his method running for forex... Now my idea is to use Jerry`s setups on 5 min charts, combined with my universal timing on 1 min using my super 2 vma`s ¡¡ I know that such a fusion of methods would give a final very cool product... You tell me if this could be done eventually.... cheers Walter.

This video shows how we now integrate the setuping on 5 min and the timing on 1 min... cheers The Chimp. Timing on 1 minute chart.swf

So let me give an example of how we can do our "Setuping" on 5 min and our "Timing" on 1 min... On this simple example that just happened, you can notice how a centrifugal action took place as we had a NET Up Trend and we got an Icon setup to trade there... on the 1 min chart our two vma lines gave us a clean entry... Simple as that... I dont say this is perfect, but it really works very clean ¡¡ Cheers The Chimp.

Now, let me introduce to you my 1 min chart... it has only two lines, no oscillators here... it cant get any simpler... Simplicity and Optimization at its MAX ¡¡ you have here the power of clean simple vma`s... very little whipsaws between them... they lead quite well thanks to the decompression of data... giving you very good specific spots to time your trades... they also have the blessing of keeping you inside a trade if you wish... So many advantages... interesting... a good evolution process has to lead into real simple final products... looks like a kindergarten chart... thought he belongs to the future millonaire generation that grasps its power ¡¡ cheers The Chimp.

Multiple Time-framing is a science not really much understanded by most traders... the croud gets confused with so many charts, many people tend to get waco with this multiple charts... The fact is that the information is only ONE... how much compressed it is or not in its plotting process its another bussiness... Drummond in his presentations talks about the 1/5th scale as a good way of compressing or decompressing data... Why decompressing data ? for example so far I presented 5 min charts, my 1/5th decompression of data would be 1 min... why ? Thru decompression of data we can have several advantages like : more data series to calculate on, get smoother results thru more data series averaged on an x algorithm... we can get more specific spots for our timing... SO... looking at a 1/5th 1 min decompressed chart does not mean I am not looking at the 5 min chart data... its the same data ¡¡ only its decompressed, so I can take advantage of that decompression... Thats why I insist that the spirit of my trades are always on the 5 min chart... but my "specifics" are plotted on a 1 min chart...

Timing... the stumbling stone of many traders... here is where noise does his work to put you out of bussiness... lets deal with that on this next posts... and see how Vma`s gives us a great unprecedented edge... Lets asume you already have somehow a clear understanding of your Setuping process... you grasped the idea of NET and REFRESH trends with our three lines, now you are able to anticipate Centrifugal and Centripetal action... and you are ready to play some Setups on this contexts like Icon and Continuation on Centrifugal context, as M`s and Refresh on Centripetal context... You understanded that the market behaves on cycles waves... where we have inflections and moves, and you understand that you will have to time your entries on the inflections of this cycles... NOW... how can I get a clean optimized signal ?... well, we have to revisit the blessings of Vma... Normally entry signals are plagued with whipsaws... the reason for that is very simple, there is a great amount of undesired sub-cycles inside the cycle that really interests me... sometimes this sub-cycles do have a level of volatility that exceeds "my" cycle`s volatility and hence gives false signals... the graph I originally presented when I discovered the power of Vma`s on my epiphany was this : you can see that other indicators DO plot the noise of the undesired sub-cycles... but Vma`s would absorb them and become horizontal... here the birth of the Horizontal Effect (HE)... in consecuence we get less amount of "signals" using the vma`s... Thats the way that vma`s have the abilty to supress all the undesired noise and bring the information down to the basic and really necesary one to time our trades... the final result is a clean line that gives very little false signals and interestingly it still leads (no lag)... on other indicators you may be able to work out a clean plotting paying a very high price of lag... not much with vma`s... So with this edge on our side thanks to vma`s and thanks to the unresting programing work from Bruce (Pyenner)... we are able to aim "Superb Timing"... continue after a good cup of cofee ¡¡ jejeje... cheers The Chimp.

I will pay a visit... first, thanks for the invitation Dynamites, and second, feel free to use TL to add some explanations with charts etc... I am sure we will all enjoy them here... I am a scalper myself, so I will give you a visit ¡¡ About the scam fobia, we had some rufians arround lately, thats why our mods feel unconfortable with the invitation and no post here.. maybe one chart here will relax that fobia.. cheers Walter.

Thanks Cattus, glad to be of some help... Its very important to grasp this setups concepts first, then as the thread is about to evolve you will see how the true power of vma`s will get unleashed on timing... cheers Walter.

We are getting there Bruce, so much programing was worth it man ¡¡ Thanks Sun... this process is really evolving... keep tuned as the timing issue will really give us the edge we need... cheers Walter

So far at this point we can say that we have a presentation of how a trade would setup for us... On the clean context of our 5 min chart with our three lines (2 of them are vma`s ) and our clean oscillator, we have the tools to understand if the market condition is or will be centrifugal or centripetal in relation to the axis... and from there on we are ready to aproach the diferent setups we may have on each of this contexts... This task I call it : SETUPING you are looking for setups... It is the first task you will make on the entire process... NOW... once you see a setup on your 5 min chart, here comes the great challenge ¡¡ : TIMING when will you take the trade ? We talked about inflections... thats where the cycles, end and start, thats the place to take our entries... BUT there is a big problem ¡¡ called NOISE... :crap: and if you observed the oscillator, most probably you already criticized how many false signal he gives.... well yes, thats absolutely true, thats why I dont use the oscillator for timing purposes... I prefer to just use him to tell me if a cycle may be ready for an inflection... So how can we get good timing ? vma`s is the good answer... continue on next post... cheers The Chimp.