Using Truncated Data

[rlite4]

Greetings,

In a properly scaled chart geometry should work, however while working with a chart with RTH data only I was expecting geometry to not be effective across trading sessions (i.e. beyond the RTH for the day). So a few questions arise and I am trying to put them down so it makes sense

In the ES 2m chart below for example one would expect that Geometry, which one tries to "bring out" by proper scaling, would be lost where charts are truncated, I.e. some of the data (non RTH) has been truncated in effect foreshortening the time axis and so I would expect the geometry from the previous day to not hold the next day. In the chart we do see there are price disconnects between close of day to the open next day - this would be expected. But if we look at the price action over the few days in this chart the price action still responds to trend lines drawn in earlier sessions.

Is this kind of behavior seen for geometric patterns other than trend lines where price action still responds to the other patterns or would it be fair to say if one is using a truncated RTH chart applying Geometry beyond intraday does not work?

Can price action responding to trend lines across days for (this/a) truncated chart, be explained by an argument along the lines:
- Once a proper chart scaling is found for an instrument, changes in volatility can be accounted for by simply using a (sub)multiple of the scale;
- In this example the lower volatility (energy) of the market and instrument non RTH is automatically compensated by Time axis truncation in effect for the lower volume / Energy periods?
- what does this say if we are using a chart with all session data included?
- should we use a chart where there are two scales ie one for RTH and one for ETH
- or as an extension the scale varies as energy in the market changes... just a question
... my eyes are already crossed over twice, have to get my self back to the land of the...

hopefully some one can shed some light and straighten me out.
TIA
srj

ES2Fibtest1-2021-01-23_10-16-22.png (77.61 KiB) Viewed 7467 times

[abacaba]

Hi rlite,

First, if I may, the scaling you are using needs to show more contour in the price swings, as in the chart posted below. Once that is in place things become much clearer. You'll notice that this particular example, just chosen at random when I pulled up the chart, shows an inter-day pattern appearing. So, yes, patterns and geometry do manifest both on inter and intraday time frames. You can trade effectively from either or a combination. There is no need to scale one differently than another as long as you are using the same sample rate for each. You are right about changes in volatility -- this should be modeled using multiples of the base scale.

Todd

fib spiral.jpg (77.01 KiB) Viewed 7461 times

[rlite4]

Hi Todd,

Thanks for the explanation - that helps a lot. Is that the SPY - my data for the SPY looks like it is off just a little - but I will start by recreating your chart and work from there.

thanks,
srj

[abacaba]

Yes, SPY, 2 minute bars.

T.

[ForJL]

Hi SRJ,


First, I certainly agree with everything Todd has to say. About the only thing I would add is that as a general rule I try to shoot for the price range that I am interested in to occupy approximately 60% of the available range of the chart. I find it a good place to start and more often then not works quite well.

Joe

[rlite4]

Joe,

One word for that chart: Beautiful!

Thanks for the 60% Guide. But that one chart says so much and raises a bunch of questions. The 10 degree offset mirror plus scale increase (?)% for second vortex - does that always hold or is that a manual adjustment? if so says so many things. Have to explore that stream.
Second how do you get the green and red shading? - market direction I presume.
Boy that chart is a beauty. I have to go take a 10min walk to calm me down

Regards,
srj

[rlite4]

PS:
Till last night I was getting ready to ask a question on the forum about how to make a versions of the Fibo Vortex, FOG, and other patterns, where I could modify the properties of the lines, arcs and spirals, make selected visible or less so - to be able to superpose multiple and keep-visible geometry to which the market is reacting or might react - in an effort to tweak out patterns. Your Choice of colors is also great - visible but not overpowering. Did you add a palette of colors to Wave59?

TIA

[ForJL]

Hi SRJ,


Glad to hear you liked the chart. Unfortunately I'm pressed for time at the moment and out of the office tomorrow. Additionally I'll be out of the office either Wednesday or Thursday though not sure which just yet. However as soon as I have the time I will answer your questions and show you how to replicate the chart. Trust me, it's easy.

Joe

[rlite4]

Hi Joe,
thanks for updating. Looking forward to your post as time allows.

srj