gorx1

gorx1

Sup, this is the 30th & the last post that concludes all the previous ones, and finally reveals the name how I've called all this - wave auction theory. Well, me as a creator of all this (or more like a mixer, a DJ lol) I think about it more as a theorem, but that's for nerds and geeks to work it out, me I just wanna flexx. If you take a look at all existing...

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The obvious part if you've understood all the previous posts. It's easier to start with how Not to trade . Wrong - cherry picking "strong" levels. Every level is a level, not better & not worse than another one. Choosing the supposedly strong levels is a subjective thing that reduces expected value & consistency. Right - operating at each level on a given...

gorx1

The easiest part, if everything's perfect you just trade as much as the market allows before the diminishing returns hit hard. However usually everything is not perfect at the beginning, so continue reading. Logically, in order to operate successfully & continuously (you can't market make much you if loose money aye?), your equity chart should represent a smooth...

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Higher resolutions aka lower timeframes have several uses: HIgh res levels 1) For more precise entries past the positioned levels. You have a level on your current resolution, a level you want to use, let's call it "X". You turn in higher resolutions, and scale in around the levels there, past the X; 2) For precise entries during positioning. You have a level...

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More data on lower resolutions, smth that others call higher timeframes. Low res waves While being on a given resolution, the lower resolutions are mostly used to understand the trends within the overall fractal. In general, you want to trade along with the strong low res wave, and don't trade against an exhausted low res wave. While being on given resolution,...

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Aside of the usual things ie waves & levels, being on a given resolution, mainly we are interested in the direction in which trading activity develops (so called, trend, gradient, slope etc). It is not exactly necessary if you follow a vehicle on every resolution, this way you always know the direction by simply understanding whether we are in low res buying wave...

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There's some curious personalities that trade (at least claim to trade) based on news, fundamental metrics, alt data n stuff. I don't mean invest, I mean trade. Well that looks like a skill to be proud off, superstimuli always feels cool aye? Good thing tho there no real reason in doing it all. The most precise term to explain non-market data is, well, everything...

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There are people who trade based in order book exclusively & promote these so called orderflow trading platforms, even these days. Surely, it's a great deed to learn this interesting, exotic & unusual skill, but the thing is it's completely unnecessary. The real use cases for DOM aka LOB aka order book aka Level 2 data are mitigating adverse selection, reducing...

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I can assume many people heard about other people using tick charts & tick-aggregated (xd) tick charts. You know, like 233 ticks, 512 ticks etc 1) It never makes sense to aggregate tick charts by ticks. You loose information. Unless there's a specific reason you're very well aware off, there's no sense in all these 64 tick, 89 tick charts or whatever many...

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One of the reasons why a divergence on an "indicator" hasn't provided an expected result is because there was an info conflict with more data on lower resolution (aka higher timeframe was against it). The second reason is because these indicators don't know how to distinguish buying and selling waves properly, when they start and when they end, as explained in...

gorx1

Imagine daily profiles put on each day on the chart, and let the words in purple provoke some fruitful doubts in your mind. The presented and advertised way of using volume & market profiles is essentially a way of approximating the real levels. This way is very bad. 1) The most fundamental and very obvious flaw is that it disregards the sequence of events. You...

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Considering we are almost in 2k23 (Merry Christmas btw xd), obsession with returns & log-returns is hilarious: 1) It implies sampling, which is info loss by definition, I don't even wanna mention that most don't even bother with proper one-point estimates of dem datapoints, dem just use Close prices; 2) Then the differencing process itself, whatever the lag is,...

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On the chart, Oct '94 is a pre-test of 92.26 I'm not sure it's a good example here, but it'll suffice to explain this easy concept. Again, it's not the system's behavior principle, the reason of this microstructural phenomenon is all of us. Forgot to mention before... There's no such thing as, "A new wave started after "almost" hitting a level". NO. In 100%...

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There's no such thing as round levels , instead: 1) You open the option chain of given vehicle; 2) You notice the step between the strikes that have significantly higher volume/OI than the other ones; 3) for example on ES dem would be xx50.00 and xx00.00; Without further analytics of the option chain, the very general rule is that these levels usually stop &...

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4 real, levels can't be re-positioned, but there's a lil detail. As explained in "Real levels: positioning and clearing", positioned levels can't switch direction, ie once a level was positioned as support it can't become a resistance, once a level was positioned as resistance it can't become a support. A positioned level can only be cleared with time, price or...

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The main purpose of analyzing waves is to understand when the current wave is exhausted aka overextended aka overbought aka oversold. What is every1 seem to miss is that exhaustion is not based exclusively on "price gone too far", but also on "too much time passed" and "not much volume was traded" as well. That's one of the main reasons why your comparative...

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From all the dudes tryna solve it Wyckoff was the closest. He even figured out how levels get positioned as supports/resistances (he called it accumulations, re-accumulations, distributions and re-distributions). The only thing he was missing are the actual levels hehe (all these 4 volume absorption processes never happen "in the air", ain't no Phil Collins in...

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Again as with the levels, first ima tell how to locate both real & imaginary waves, then I'll explain the principle itself, what are they, why it works etc, why we need em & how to use em. It's really easier this way. Let's start with imaginary waves. First, pls read the linked "Imaginary levels: fair price aka value", it has an explanation and another common...