Dear Journal #2

Dear Journal,

It’s been a while. It’s not that I haven’t been trying, it’s that I’ve been stuck, among dealing with quitting, moving, and other life things. Most importantly, stuck. How to make progress?

There are still the old important questions, with a few new ones, that need to be answered:

1. How do I deal with the issue of multiple time frames? Trends in one time frame are retracements in larger time frames. In some similarity, trends and retracements in one time frame can be considered noise in a larger time frame. High tier scalpers and large intraday traders care a great deal about getting the absolute best price when the magnitude is millions of dollars worth. The pip and the pipette matters. Big position traders, who really run the markets, are slightly different. A pip or 2 off won’t kill a position that is set to make well over 200 pips anyway. Tying this together: What can be considered a big S/R watch zone for small tf players isn’t the same for large tf players. When orders come in from big money, price shoots. Back to what SB said, it’s important to know which tf is in control, and when. To reiterate what Rel said, Small tfs are more time sensitive, big tfs are more price sensitive.

I’ve been told pure intraday data can be good enough, or fairly close. Weekly and monthly trends, due to their nature, have greater variance. For intraday trading, trusting the intraday trend more than the weekly trend is logical. I think it would be nice to find a way to tie in waves on one tf into the waves of the larger. Easy to think, probably a monster load to do.

2. How do I deal with the issue of “pip difference”? Daunting. Extremely. A pip in 2000 is not the same as a pip in 2013. How can I map price movement consistently across years? Considering Rel said even he couldn’t find a solution and that it was given to him, I fear for my ability to solve this. “I never would have thought of it”.

3. How to make progress on the wave indicators?

This is the most practical or hands on of the 3 questions at the moment. How do I actually map price movement? The main idea is to keep things simple, yet capture the necessary action. Drill drill drill. Start with mapping extremes, then map how price moves to extremes. Accumulate statistics for findings along the way. The idea is to monitor a sort of “life cycle” MMLC (major move life cycle) of price movement. I’m told eventually I want a sort of “scatter plot” that will do something for me… What benefits does the scatter plot offer over my traditional %s? Can I do without it?

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