Hour Compositions Pt 3: ABC waves in the 1 hour context

I tried to use my old old ABC waves to confirm that these kinds of studies are indeed reflexive in any time frame.

1 hour ABC waves

Same as with the old model, I added a simple time filter to normalize the data a bit more while maintaining most of it’s integrity. Most important to me is how ABC waves still make up the majority of waves, and I can use this as a method for tuned entry in some scenarios, especially when one can make money betting that price will NOT be at a certain price or range of prices. The “trend” direction here actually has a slight edge (A+C+E= 55%) which is nice. I generally don’t count anything under 60% as an edge, but in these very micro frames, it counts for something. I still need more data to be comfortable with it, but it’s a start.

Using this trend following idea, I’m trying to look into dynamic “safe” levels. When dealing with hourly data (or intra hourly really), I think time filters are mandatory.


I have a bit more work to do in trying to optimize this, but early results do seem to suggest that active hours are more even in terms of trending moves while off hours favor range bound movements. Seems correct.


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