I think this a very interesting concept that has a lot of different angles to be approached from, both from levels and waves. You can calculate these based on a ratio of a previous wave, or fib fans/fall lines, pure pip movements, H/L of particular bars, etc. When I use the term PoNR, what I really mean is a launch point; a point where if price breaks out of it, it won’t return for some period of time. Using the similarity thread principles, this would be somewhat similar to finding points that are right side transient.
Practically, this is very useful for verifying when a trade is probably good to go and doesn’t need to be monitored anymore. Additionally, it can be used as a point to add onto a trade.
Filters filters filters. Using the correct frame makes all the difference.
Given that the average wave is 100 pips, the first filter (left) gives me an 80% edge after price has moved 70 pips or so. However on the right, the same accuracy can be achieved after only 25 pips…After a reference point has been created. How large is the reference point? Typically smaller than 45 pips.