Summary for 05.03.24

Market.
Today, the extreme conditions tightened, and I will return to this a bit later. There were segments during the day, and three extreme conditions.
About the conditions. Let’s try to move away from mechanics—how many stops should be and try to give images of the conditions.
Extreme conditions of low volatility mean the following. When the price crosses the imaginary stop order line for the first time, this means that simple movement through floating squares is ending for us. When it happens a second time in a row, it means that we have simple movement from floating squares against the trend, which consists of more than one floating square. To this, we add that all this should happen within the bounds of one segment.
Opening a position in the direction of this movement going against the segment’s color means that we expect a deeper pullback and maybe even try to get in a bit earlier for a trend change across segments.
If this simple movement ends, we consider that the price is returning to the trend, i.e., we expect the trend to continue, and ideally, we will have at least one more segment of the same color. Today’s tightening of extreme conditions was precisely related to this, i.e., an attempt to get on the trend continuation when volatility subsides or possibly on the trend change. But still, at a fairly early stage.
Extreme conditions for maximum volatility are an attempt to get on a new trend even earlier, before two pullbacks, possibly even from the level of the first pullback. Undoubtedly, our perception of the segment picture will be important here—how many segments we consider can go one after another. Keep in mind that extreme conditions for minimum volatility when the price returns to the trend can give us an entry either in the middle or maybe at the end of the trend. This needs to be understood and not lament over imaginary missed profits.
By getting into the already ongoing movement during the day, we inadvertently observe how all movements end today. Based on this observation, we can describe the dynamics for the evening trading session to try to get in earlier for future movement. It should be understood that at any moment we can make a mistake with the counts of the number of segments, and this number can go to previously unseen numbers. That is why getting in the middle of the movement during a volatility drop may be a safer way to trade, but it does not negate the desire to get into an earlier phase. In general, the description turned out to be more philosophical; I hope it brings you closer to understanding what I want to say. I await your comments and questions.
Group.
There is a sharp decline in those willing to watch both morning and evening webinars. I don’t know the reasons—whether the interest or workload disappeared. I recommend watching the recordings at a faster speed, so events will be more dynamic. 
In general, everyone, have a great evening!

This Post Has 2 Comments

  1. Kris

    По моему мнению очень хорошее описание удалось. Спасибо, что нашли время написать это и попытаться объяснить.

    Мне просто не удалось уловить описанную здесь идею граничных условий с максимальной волатильностью. Я не понял конкретно фразу – “до двух откатов возможно даже от уровня первого отката”.
    Возможно, схематическое изображение здесь помогло бы лучше понять это.

    1. admin

      Навебинаре следующего дня я уделю этому вопросу больше внимание , чтобы иллюстрация была не только схематической но и динамической )))

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