Helweg/Stendahl value charts ... - page 11
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Hi mladen & mrtools,
Curious to see what would happen if we had a price adaptive version of value charts.
Can this be done?
Cheers, San.
San
How would it adapt?
Hi mladen & mrtools,
Curious to see what would happen if we had a price adaptive version of value charts.
Can this be done?
Cheers, San.I don't know.
Was hoping to see the length of each pricebar adapt to previous price volatility and would allow settings based on phase accumulation instead of period. Am I mixing up phase accumulation with price adaptive here?
I guess I need to play with the 'period' parameter.
I don't know.
Was hoping to see the length of each pricebar adapt to previous price volatility and would allow settings based on phase accumulation instead of period. Am I mixing up phase accumulation with price adaptive here?
I guess I need to play with the 'period' parameter.I dont know about this Snow. Im just a beginner at this and way in-experienced as compared to everyone in this forum, much less to you even or mladen and Mrtools . But i'll just say out my 5 cents thoughts and hope someone experienced can correct me so i can learn too.
The formula basis of Value Charts was to see a "true" picture where price movements are moving after filtering the volatility away. Volatility represents price uncertainty and the purpose of VC was to remove that price direction uncertainty. While adding in a volatility adaptation can still offer benefits, it will strip away in part the benefit of seeing a "less noisy price direction", in a way having a watered down VC effectiveness. Volatility represents uncertainty and that uncertainty is itself uncertain. Adaptation to volatility will be better suited to indicators that doesnt take into account volatility already for instance EMA etc etc, while using VC for direction finding, while letting other indicators adapt to volatility in your system.
An alternative angle to look at this from a data approach is that there is an overdependency/excess weightage on certain input fields, with High and Low data field given a double weightage if we have a volatility-adapted VC. This would create excess weight/unstable signals from volatility changes. If your method of VC usage is only +/-8 levels purely, then adaptation will make sense. However, if you choose to include/use direction too, it will be more unstable.
However, in a further continuation, if using VC for +/- 8 levels and using for adaptation to previous price volatility, it is a double edge sword too. The duality of life as is, low volatility can mean quiet price stable times and a trend while high volatility can mean.... A and B, and this means.......... X and Y (hope you get the long continuation logic thereafter). Price volatility adaptation can be done but you have to be aware of the signal influences that you cause according to what your system purpose is and the parameters you use, via careful statistical testing of the influenced +/-8 levels. If this sounds like too much work, then it's better off keeping it simple and not add price volatility adaptation
If you're intending only on direction adaptation, and worried about directional accuracy for an entry, it's better to not adapt and use a market condition detector (ADX, JCFBAUX etc or hopefully the one we're hoping Mladen/Mrtools could construct, as it's got a more stable construction geared on reducing Type 1 errors/false positives due to autocorrelation and Einstein's law). If you're intending only on direction adaptation, and worried about the exit part AND wanting to have adaptation to price volatility, you can use ATR multiplier from price as a standalone tool. You cant have both direction and location ultra reliably (Heisenberg uncertainty principle?)
Regarding Price Accumulation/PA, it's an adaptation but not to price, but to cycles only. It's a cycle finder so you can only use it on the higher timeframes where there are cycles, otherwise it's catching ghosts if used on the lower TF.
So much for words, when it feels like im speaking a bunch of rubbish, so please mladen/mrtools or someone correct me where im wrong. Probably, im speaking a bunch of rubbish so probably, just ignore me altogether. Dang
Yours sincerely,
Wintersky
This is an older version of value chart using upper lower bands instead of the moving averages. Also now the alerts will go off when either the upper or lower band break out or as before when the value chart bars cross 8 or -8 in oversold or overbought.
After having played around with the dynamic zone value charts for several weeks I have a possible improvement for trading. It seems to add perfect entries along the trend but often only in the trend direction.
If somehow displayed as a 4TF meter it would add some confidence to trade entries by easily confirming a certain level of overbought/oversold on different timeframes. I've noticed that sometimes when you see an entry on M15 if there is a conflicting level on higher M30 and M60 the trade may be a false entry. If someone with a higher understanding of coding and try this it would be much appreciated. Not sure if possible due to the buffer requirements. In addition it might be a challenge to display visually. It is obviously possible to view this by switching TF's on the chart, but due to the CPU intensive nature of this indicator, it take's a lot of time, when a entry time in crucial.
If anyone is interested I tested this method manually on Trading Simulator- Dynamic Zone Value Charts with Mladen's High Low Activator on m15. It's a good result. Was trading in a discretionary way and would have been a lot better had I not missed a lot of trades because of the speed sometimes of using trade simulator.
They're both fantastic indicators. The method is to trade the value chart in the direction of the activator on m15. No stops but stop out of a trade if the activator indicates the opposite direction. Set targets in a discretionary way but sometimes closing a trade when value chart hits dynamic zone territory. The only Achilles heel is sometimes the High Low Activator will get the trend wrong but when this happens you just have to notice it and let common sense prevail and wait till the activator gets back in sync. I noticed a lovely synchronicity between the two indicators. When price would cut below the the activator this always corresponds with the signal being in the dynamic zone on the value charts.
(Also regarding the post above I'd be interested to know if this is possible too).
Thank you for your test. Can you share your template and add some picture of trade example?
Thank you
They correct my tickets?
If anyone is interested I tested this method manually on Trading Simulator- Dynamic Zone Value Charts with Mladen's High Low Activator on m15. It's a good result. Was trading in a discretionary way and would have been a lot better had I not missed a lot of trades because of the speed sometimes of using trade simulator.
They're both fantastic indicators. The method is to trade the value chart in the direction of the activator on m15. No stops but stop out of a trade if the activator indicates the opposite direction. Set targets in a discretionary way but sometimes closing a trade when value chart hits dynamic zone territory. The only Achilles heel is sometimes the High Low Activator will get the trend wrong but when this happens you just have to notice it and let common sense prevail and wait till the activator gets back in sync. I noticed a lovely synchronicity between the two indicators. When price would cut below the the activator this always corresponds with the signal being in the dynamic zone on the value charts.
(Also regarding the post above I'd be interested to know if this is possible too).Good morning Gramski:
Excuse my English please.
Attached is a picture that attempt to represent what we're saying, but in a Renko chart is correct what I say in the image?
Entries are correct that I put in the picture?
If not, do the same request that Dasio, we can attach a picture to see how you do it.
Thank you.
Regards
Hermo.
Dasio and Hermo,
I was trading the High Low Activator in a discretionary kind of way using Dynamic Zone Value chart for entry. See chart, buy when Activator is long and Value chart signal is in lower Dynamic Zone. Also by doing this I could avoid occasional whipsaws by the HL Activator. (Notice if Activator is long and price cuts below on chart line this usually corresponds to signal being in lower Dynamic Zone). If a new Activator signal was wrong i'd try to exit with a small loss.
My entries weren't always perfect because of the speed of using the simulator (I'd flip past good prices) but that was my basic tactic. I wouldn't enter on the Activator signal itself but always see what price is doing after that.
Note if I thought the trend of the HL activator was tracking in the wrong direction then no entries. As I say it can be wrong (and also look very wrong) sometimes. Also in my test only one bad loss but that's because the market gapped 200 pips over a weekend.
Hermo could you post your Renko please?