how to identify price reversal points - page 3
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I agree that I have been thinking. But that does not mean thinking about pivot points, because you do not need to know how to identify pivot points to make money. Because determining pivot points and making money are slightly different things. Or rather, you don't need to know how to identify pivot points to make money. And vice versa. In order not to make money - you need to give a person an unsolvable task, namely the task of how to determine these mysterious pivot points.....))))
That's exactly what it's not. At its simplest, in order to make money, you need to identify global market trend change points. Everything else is vanity ))))
I agree that I have thought about it. But it does not mean that I have thought about pivot points, because I don't need to know how to determine pivot points to earn money. Because determining pivot points and making money are somewhat different things. Or rather, you don't need to know how to identify pivot points to make money. And vice versa. In order not to make money - you need to give a person an unsolvable task, namely the task of how to determine these mysterious pivot points.....))))
It is quite understandable that you don't have to be at the turning points to make money at all. You can take the example of individuals who pick up recyclables, sort them and give them to collection points or whatever.
When it comes to trading, you can also make money in different ways.
It's a little different.
Theoretically, reversal points (or correction) from non-turn points on history can be divided into two categories, namely, taking numerical values on certain parts of history of size of n bars - patterns such as
f(i + n - 1), f(i + n - 2), ..., f(i + 1), f(i)
where: f() is a function, i is the bar number
Let's check the condition according to which the historical patterns can be divided into two non-intersecting sets:
And then it is a matter of technique, for example using a neural network by feeding the above patterns on inputs and signs of classes corresponding to patterns on outputs you can get their identification by dividing them into two classes: with and without a pivot point.
I.e. it is not quite true to say that the task of finding pivot points is unsolvable in principle. At least on historical data we can solve this problem by fitting.
Greetings all! The most proven, accurate indicator, after price of course, is a simple trendline and horizontal level! Everything else is secondary. I swear on the relics of Christopher Columbus it's true, otherwise false!
I haven't met any trend indicator that becomes horizontal in the presence of a flat. The point is that the calculation period of a trend is always longer than that of a flat.
There's nothing complicated about it. There are few tools - trend lines, rays, channels (repetitions of previous impulses). If you don't want to think about it yourself, read T. Demark and J. Schwager (full course of technical analysis).
An exhaustive, but absolutely NOT useful answer. I am looking for a ready-made indicator or set of indicators, which can be refined by myself.
I agree that I have thought about it. But that does not mean that I have thought about pivot points, because you do not need to know how to identify pivot points to make money. Because determining pivot points and making money are somewhat different things. Or rather, you don't need to know how to identify pivot points to make money. And vice versa. In order not to make money - you need to give a person an unsolvable task, namely the task of how to determine these mysterious pivot points.....))))
You will also tell me that earning and finding entry points are not the same thing. If so, then according to your logic it is possible to make money without knowing the entry points or entry points do not coincide with pivot points. If we are talking about the first one, then there is a counter question - are we talking about Forex here? You can make money from your job, you can start your own business... But that is not what the forum is about. If we're talking about the second, we have to assume that you have an alternative way of finding entry points - maybe you could share the information with us, it would be of interest to everyone!
ZZZ: What you wrote about global trend reversals is quite understandable. Except that TS built on such entry points requires a significant balance in the account and always has a large drawdown. I do not really like this method. My Equiniti may not have grown that much yet... )))That is, it is not entirely accurate to say that the problem of finding pivot points is unsolvable in principle. At least on historical data we can solve this problem by fitting.
+1, I will take a screenshot and tell you how I managed to solve this problem.
Perhaps you are using the wrong definition of a flat, if no indicator is showing it.
The figure below shows a graph of the oscillator (red line) with a minimum lag. If you plot the adaptive moving average (blue line), you can see more clearly how the price fluctuates. The tops of the oscillator coincide with the tops of the adaptive moving average. The oscillator line is rather smooth and varies from -1 to 1. It will be easy to detect price reversal points with minimal delay. I am quite satisfied with it.
The oscillator is obtained through calculation of the 1st derivative of the Hordrik-Prescott filter by closing prices with non-linear signal processing using the inverse Fisher transform. There is no overshooting.