Monday, October 28, 2002 11:01:37 AM
Posted by: LG
In reply to: augieboo who wrote msg# 1060 Date:9/29/2002 9:17:03 AM
Post #of 1868
augieboo: I think you already have the general concept down, per your earlier post. As I said to hk2, I like to think of the various time intervals as different size gas tanks. All used to run the machine and make money for the boyz. While the goal is to make money with each tank, on occasion a tank or tanks will be run dry, using one or more of the other tanks to compensate or one or more of the tanks will be over filled allowing the over flow to spill into one or more of the other tanks. The focus then has to shift more intently on the tanks (intervals) that are not yet, in extreme conditions for timing.
Thus, each tank is in an ongoing process of being cycled in varying degrees from full to empty and back to full, etc. Understanding the process allows you to better trade the time frame of your choice. However, all tanks (time frames) have influence to greater and lesser degrees depending on the indicator’s current trend direction, trend momentum, degree of fill/empty (overbought/oversold) and the current trend direction, trend momentum, degree of fill/empty (overbought/oversold) of the other time frame indicators.
By the way, signal lines are for the most part of little use in my system, as they are not used to trigger or confirm, but more of a trailing guide. The confirmation or trigger is replaced by using more than one indicator in each time interval. So the system becomes more complicated because you are not only watching more than one time frame, but you are watching more than one indicator in each time frame.
However, just like learning to drive a car with a stick shift was difficult at first, eventually pressing on the accelerator and clutch while shifting, steering, using turn signals, etc, will become second nature to some so you can concentrate on the road. Of course, this system is not for everyone, just as for some, driving never becomes second nature.
Regards,
LG
--------------------------------------------------------------
Posted by: LG
In reply to: hk2 who wrote msg# 1051 Date:9/28/2002 1:04:58 PM
Post #of 1868
hk2: The idea is to move when all the twitches give the same signal.
Close, but do not think of each time frame as a traffic light with exacting buy and sell signals, but more in terms of various size gas tanks each with its own fill gage.
The boyz intend to sell the gas in each tank for a profit. So they must buy low and sell high or pre sell (go short) and buy back at lower levels. In order to accomplish this, they push the price in the needed direction, sometimes triggering stops (buy or sell stops), sometimes at psychological price action points that triggers buying or selling (trend lines, chart pattern constraining trend lines, at significant price points, etc.). Often the price is just moved dramatically enough in one direction to induce the proper response from individual investors. Price movement begets volume...
For instance a dramatic rally will be used to distribute into. First they meet the buying demand buy selling the inventory they accumulated at lower levels. Eventually they run out of inventory so they satisfy buying demand buy selling short into the rally. The price will be dropped back (retrace) to allow the boyz to cover short positions and acquire inventory.
Regards,
LG
-------------------------------------------------------------
Posted by: LG
In reply to: augieboo who wrote msg# 1050 Date:9/28/2002 12:53:44 PM
Post #of 1868
augieboo: Now try...
Stoch 13, 8, 3
MACD 13, 21, 3
DirMov 21, 3
Time frames: Weekly, daily, 130, 65, 30, 15, 5-minute
Do not interpret them in terms of absolute signals, but as a measure of overbought and oversold in each time frame. Keep in mind that there are differing levels of overbought and oversold and the differing time frames excerpt their influence each taking a turn, sometimes in groups and on lesser occasions in unison.
This is not a magic formula that trips a switch alerting you to buy now or sell now. This is not a system of absolutes. It is a system that allows one over time to gain a feel for the ebb and tide of the accumulation and distribution process. As you begin to get your finger on the pulse, the multiple time frame system will allow you to anticipate when the price is going to be moved up or down to induce buying or selling depending on the varying needs to accumulate or distribute intra day, short, medium and longer-term.
Think of this system as a very good but temperamental thoroughbred racehorse. In order to get it to perform up to its potential, you must spend some time in the saddle getting to know the temperament of the horse.
Keep in mind this system is to be used in conjunction with support/resistance trend lines, horizontal support/resistance pivot points and price consolidations/clusters and price/volume chart patterns.
Regards,
LG
PS: I'll provide some examples as soon as I can find the time.
------------------------------------------------------------
Posted by: LG
In reply to: hk2 who wrote msg# 1039 Date:9/27/2002 12:49:38 PM
Post #of 1868
hk2: I just re-read your post...
I will need to decide on the general time frames of my trades and view the indications from that perspective.
It takes an investment in time (experience) to be able to read the combination of multiple time frame indicators with a measure of confidence. However, the advantage of keeping an eye on them all regardless of your preferred trading interval, is to anticipate the effect on your time frame by the others.
With time, (as long as you've optimized your tools) you will be able to see the interaction between the various time frames.
Regards,
LG
--------------------------------------------------------------
Posted by: LG
In reply to: hk2 who wrote msg# 1039 Date:9/27/2002 12:34:21 PM
Post #of 1868
hk2: I have been using multiple time frame analysis since the eighties. I began sharing this concept on SI back in 1998 and began uploading charts to illustrate the concept in 1999.
At the time, if anyone else was illustrating this technique on SI, I missed it. At any rate, I see the concept being used a lot these days. Learning how to use for instance the stochastic indicator over several time intervals (5, 15, 30, 65, 130-min, daily and weekly) allows you to see the various levels of accumulation and distribution. Some accumulation/distribution is simply on an intra day level, as specialist and market makers accumulate or distribute during each trading day. They work at moving the price up or down to accommodate their immediate needs and to accommodate the boys needs shorter, medium and longer-term. Learning to assimilate the various time frames allows you to understand at what levels the markets or oversold and overbought, which in turn allows you to anticipate what to expect next on a intra day basis as well as far longer time frames.
Keep in mind, that even during a decline following an extreme overbought condition, the other levels fluctuate exampled by the oscillations during a longer-term decline. When all the time frames marry up, you can usually bank that the market is nearing a significant change in trend. However, perfect alignment is not a requirement.
Of course, nothing is 100%. And, this technique depends on the optimization of the tools used as well as with any tool, one's ability use the tool.
Regards,
LG
PS: I am a little amused as some allude to having discovered this technique recently, killer TA if you will...gg
-------------------------------------------------------------
MDA Thread #board-1320
Turnips Thread #board-1125
Trading Info #board-1220
Retrace #board-1345
PPT #board-1280
http://www.angelfire.lycos.com/goth/augieboo
In reply to: augieboo who wrote msg# 1060 Date:9/29/2002 9:17:03 AM
Post #of 1868
augieboo: I think you already have the general concept down, per your earlier post. As I said to hk2, I like to think of the various time intervals as different size gas tanks. All used to run the machine and make money for the boyz. While the goal is to make money with each tank, on occasion a tank or tanks will be run dry, using one or more of the other tanks to compensate or one or more of the tanks will be over filled allowing the over flow to spill into one or more of the other tanks. The focus then has to shift more intently on the tanks (intervals) that are not yet, in extreme conditions for timing.
Thus, each tank is in an ongoing process of being cycled in varying degrees from full to empty and back to full, etc. Understanding the process allows you to better trade the time frame of your choice. However, all tanks (time frames) have influence to greater and lesser degrees depending on the indicator’s current trend direction, trend momentum, degree of fill/empty (overbought/oversold) and the current trend direction, trend momentum, degree of fill/empty (overbought/oversold) of the other time frame indicators.
By the way, signal lines are for the most part of little use in my system, as they are not used to trigger or confirm, but more of a trailing guide. The confirmation or trigger is replaced by using more than one indicator in each time interval. So the system becomes more complicated because you are not only watching more than one time frame, but you are watching more than one indicator in each time frame.
However, just like learning to drive a car with a stick shift was difficult at first, eventually pressing on the accelerator and clutch while shifting, steering, using turn signals, etc, will become second nature to some so you can concentrate on the road. Of course, this system is not for everyone, just as for some, driving never becomes second nature.
Regards,
LG
--------------------------------------------------------------
Posted by: LG
In reply to: hk2 who wrote msg# 1051 Date:9/28/2002 1:04:58 PM
Post #of 1868
hk2: The idea is to move when all the twitches give the same signal.
Close, but do not think of each time frame as a traffic light with exacting buy and sell signals, but more in terms of various size gas tanks each with its own fill gage.
The boyz intend to sell the gas in each tank for a profit. So they must buy low and sell high or pre sell (go short) and buy back at lower levels. In order to accomplish this, they push the price in the needed direction, sometimes triggering stops (buy or sell stops), sometimes at psychological price action points that triggers buying or selling (trend lines, chart pattern constraining trend lines, at significant price points, etc.). Often the price is just moved dramatically enough in one direction to induce the proper response from individual investors. Price movement begets volume...
For instance a dramatic rally will be used to distribute into. First they meet the buying demand buy selling the inventory they accumulated at lower levels. Eventually they run out of inventory so they satisfy buying demand buy selling short into the rally. The price will be dropped back (retrace) to allow the boyz to cover short positions and acquire inventory.
Regards,
LG
-------------------------------------------------------------
Posted by: LG
In reply to: augieboo who wrote msg# 1050 Date:9/28/2002 12:53:44 PM
Post #of 1868
augieboo: Now try...
Stoch 13, 8, 3
MACD 13, 21, 3
DirMov 21, 3
Time frames: Weekly, daily, 130, 65, 30, 15, 5-minute
Do not interpret them in terms of absolute signals, but as a measure of overbought and oversold in each time frame. Keep in mind that there are differing levels of overbought and oversold and the differing time frames excerpt their influence each taking a turn, sometimes in groups and on lesser occasions in unison.
This is not a magic formula that trips a switch alerting you to buy now or sell now. This is not a system of absolutes. It is a system that allows one over time to gain a feel for the ebb and tide of the accumulation and distribution process. As you begin to get your finger on the pulse, the multiple time frame system will allow you to anticipate when the price is going to be moved up or down to induce buying or selling depending on the varying needs to accumulate or distribute intra day, short, medium and longer-term.
Think of this system as a very good but temperamental thoroughbred racehorse. In order to get it to perform up to its potential, you must spend some time in the saddle getting to know the temperament of the horse.
Keep in mind this system is to be used in conjunction with support/resistance trend lines, horizontal support/resistance pivot points and price consolidations/clusters and price/volume chart patterns.
Regards,
LG
PS: I'll provide some examples as soon as I can find the time.
------------------------------------------------------------
Posted by: LG
In reply to: hk2 who wrote msg# 1039 Date:9/27/2002 12:49:38 PM
Post #of 1868
hk2: I just re-read your post...
I will need to decide on the general time frames of my trades and view the indications from that perspective.
It takes an investment in time (experience) to be able to read the combination of multiple time frame indicators with a measure of confidence. However, the advantage of keeping an eye on them all regardless of your preferred trading interval, is to anticipate the effect on your time frame by the others.
With time, (as long as you've optimized your tools) you will be able to see the interaction between the various time frames.
Regards,
LG
--------------------------------------------------------------
Posted by: LG
In reply to: hk2 who wrote msg# 1039 Date:9/27/2002 12:34:21 PM
Post #of 1868
hk2: I have been using multiple time frame analysis since the eighties. I began sharing this concept on SI back in 1998 and began uploading charts to illustrate the concept in 1999.
At the time, if anyone else was illustrating this technique on SI, I missed it. At any rate, I see the concept being used a lot these days. Learning how to use for instance the stochastic indicator over several time intervals (5, 15, 30, 65, 130-min, daily and weekly) allows you to see the various levels of accumulation and distribution. Some accumulation/distribution is simply on an intra day level, as specialist and market makers accumulate or distribute during each trading day. They work at moving the price up or down to accommodate their immediate needs and to accommodate the boys needs shorter, medium and longer-term. Learning to assimilate the various time frames allows you to understand at what levels the markets or oversold and overbought, which in turn allows you to anticipate what to expect next on a intra day basis as well as far longer time frames.
Keep in mind, that even during a decline following an extreme overbought condition, the other levels fluctuate exampled by the oscillations during a longer-term decline. When all the time frames marry up, you can usually bank that the market is nearing a significant change in trend. However, perfect alignment is not a requirement.
Of course, nothing is 100%. And, this technique depends on the optimization of the tools used as well as with any tool, one's ability use the tool.
Regards,
LG
PS: I am a little amused as some allude to having discovered this technique recently, killer TA if you will...gg
-------------------------------------------------------------
MDA Thread #board-1320
Turnips Thread #board-1125
Trading Info #board-1220
Retrace #board-1345
PPT #board-1280
http://www.angelfire.lycos.com/goth/augieboo
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