Revisiting double tops/bottoms, possible re-haitus

I think this is, or is close to the last statistic I plan to post for a while.

I noticed something, and then read it in the similarity thread as well today. Someone had mentioned that in the case of double tops/bottoms, the opposite zone has some attraction strength that needs to be addressed/returned to at some point.

ex. Assume transient top occurs. Price spikes down, then sits in a range. Price moves up again later, and forms a second transient top, without a transient bottom between them. What’s the chance that price will revisit the lowest low between the two transient high points?

revisit

Results show that in those scenarios, price revisits the in between point about 67% of the time (0 indicating never returned to)

I’m surprisingly satisfied with my general framework with T-bars and T-waves (did I just invent a glossary?), and now I want to key into some other parts: entry, exit, retracements, extensions, etc. I think I’ve found my edge! Now I have to refine it to the point where it’s comfortably trade-able, and not just playing the statistics of where the general direction of price will end up. I want to be on demo/small live for a while to get a feel for it and see what areas I like and don’t like, which will lead me to have more specific areas that I want to see if I can learn more about. Doing so I think will require a bit more creativity and ‘bizarre’ tactics. I always wanted to mess around with SB stuff, but finding anything just seemed so difficult; it’s not that I don’t want to put in the time, but rather I want to have a solid base before I ventured into other areas.

general ideas I want to look into:

Rectangles, DV, TCD extensions(dominant/subordinate life cycle), overfill, wave slopes, momentum equalizing, “smeared” price, launch/magnet points, pivots.

Coming up with a way to design and test these will take a long time, if ever even attempted, so I don’t plan on having much to share for a while.

Until then!

Advertisements

One thought on “Revisiting double tops/bottoms, possible re-haitus

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s