The next part of the thread is a transition from Barros Swing (BS) into Signal Bender (SB). It’s important to know the differences and why SB is preferred. This is an area I don’t feel too comfortable in, but lets see if I can dissect something from what I DO know.
A good wave indicator must basically play around with pure price (O/H/L/C) in a way that maps movement correctly, and accurately, and does not “break” the structure. It should not force a pattern(still wondering about that) but a pattern should emerge. Creativity! This is something I believe I lack at the moment; I hope more study into what I’m looking at will give me ideas to proceed. As Rel writes:
a-structual / specific repeating patterns (BS did not fully succeed)
b-tie in with volume (BS did not fully succeed)
c-multiple timeframe analysis of how a lower TF wave would interact with a higher TF wave (BS did not succeed well enough)
d-handling of inside swings on the same TF level (related to point a; did not suceed)
e-wave lengths time wise (succeeded)
f-wave lengths pip length wise (succeeded)
E and F are easy; it’s the first 4 that are difficult and ultimately help produce an edge.
In his post about SB basics expounded, he goes over a point which after reading for a third time, is starting to come together a bit more nicely for me. This set of posts has a lot of info in it read in the right light. Here are some of the points he makes:
-2. There’s a difference between what we see from a candle pattern, and what price is literally telling us. “Manual visual chart reading VS Manual non-visual raw price data reading”
I see this kind of like subjectivity vs objectivity. A bearish engulfing to the candle reader suggests a bearish reversal. However on various time frames this kind of pattern may be slightly invalid, require more time, or non existent. However in correct wave analysis, we should see deeper than that, and know exactly how price is movement relative to the candle before it. There should be no variance between two charts due to broker platform, they should be uniform. After all, everyone is ‘seeing’ the same chart no? The wave tool’s job is to remove this ambiguity from chart to chart. It also removes eye bias; if the wave tool is printing down, it’s printing down. Price is price.
Pt 2 will look at why I think the construction of waves via SB makes sense