 Harmonic Currency Pair Cross Index | Currency Futures Harmonic Currency Pair Cross Index

Posts: 187 since Apr 2011
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 JetTrader. Thx for posting. Re: the "Trajectory". From your post #14 "The reason I call it the TCD pattern is because it uses one of the first Delta concepts that I developed in my trading system several years ago (mentioned above in my reply to Fat Tails). It is called the Transequential Contiguous Delta (TCD) and it is simply the Trajectory Sequence of: High  - Low  = Long TCD High  - Low  = Short TCD " I'm unable to understand if the criteria to annotate the two intersecting Trajectory lines is because you haven't actual explained that aspect fully (the reason for which is understandable, lol), or I'm just being dense ? Forgive my ignorance but welcome any clarification/example if appropriate. Thx .

I sat for a long time looking at raw data and charts until I saw it, so there's no problem in not seeing right off that bat.

Note the "Recap" pic above. The only thing that is throwing you off is the fact that you are looking at a 1 Minute Chart. Had I posted this 1 Hour Chart, you would have easily seen the reason for the annotations using the standard MT4 bar location format of "[n]":

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Both charts show the exact same thing. In the M1, I drew the H1 period separators and then annotated the chart with "1 Hour Bar on M1 Chart" to let you know where the start of each hour was located on the M1 chart. On this chart, no such annotation is necessary because you are looking directly at the H1 chart and each bar represents one full hour. So, I simply labeled bars  and , so you can know in which direction the the calculation runs in order to derive the TCD value. Subtracting High  from Low  gives the H1 Short TCD Trajectory. Subtracting High  from Low  gives the H1 Long TCD Trajectory.

The calculation for all Trajectories within the system is always directional to produce a positive integer. However, there is a unique set of Trajectories called the Alpha Class, that are also directional but that produce negative numbers. Alpha Indicators are unique because everything beyond the 1st derivative of price is by definition a Non-Contiguous Transeqential Delta (NTCD). Technically, the Alpha Class is unlimited in the number of Trajectories that can be created.

If you take the three (3) bar OHLC sequence of:

 1.4406 1.4421 1.4384 1.4412
 1.4433 1.4438 1.4398 1.4401
 1.4411 1.4440 1.4392 1.4433

You can produce 4 primary TCD Trajectories and a total of 42 Alpha Class Trajectories with 14 of them being Transequential and 28 of them being Non-Transequential and that's just using 3 bars of data.

- Transequential means Transverse Sequence: the values being calculated are transversely opposed to each other within the OHLC stream of data and both the Source and Destination values are in sequence, meaning one follows the other in Time and can be either to the Left of source value or Right of source value. The destination value is always subtracted from the source value. So, to derive the basic Long TCD, you have to subtract the destination value High  from the source value Low . Thus, primary TCD values run backwards in Time.

- Contiguous means exactly what the name implies: the values being calculated are contiguous bars of data.

- Delta means exactly what the name implies: the difference between the two values being calculated.

A Non-Contiguous Transequential Delta (NTCD) means: the values being calculated are not contiguous bars of data (mostly the Alpha Class of Trajectory).

So, when I do primary research, I take raw data in the sample OHLC form given above for bars  through , and I look for patterns that have high yielding Deltas. The rest is a process of synthesizing the data and isolating (or, finding) those Delta Patterns that like to repeat with regularity. Then I run statistical (historical) calculations to produce dynamic Indicators from the Delta Patterns. A Trajectory is simply a Delta with an upward or downward directional component, where its Magnitude is measured in pips (in the absolute).

The key is to find the right Delta Patterns and to synthesize the best Trajectories. After that, its all about constructing algorithms to produce indicators, signals and trade logic. 