FAQ for Simple estimation techniques - futures io
futures io futures trading



FAQ for Simple estimation techniques


Discussion in Traders Hideout

Updated by aquarian1
    1. trending_up 2,917 views
    2. thumb_up 0 thanks given
    3. group 0 followers
    1. forum 3 replies
    2. attach_file 0 attachments




Welcome to futures io: the largest futures trading community on the planet, with well over 100,000 members
  • Genuine reviews from real traders, not fake reviews from stealth vendors
  • Quality education from leading professional traders
  • We are a friendly, helpful, and positive community
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts
  • We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

(If you already have an account, login at the top of the page)

 
Search this Thread
 

FAQ for Simple estimation techniques

(login for full post details)
  #1 (permalink)
Point Roberts, WA, USA
 
Experience: Advanced
Platform: IB and free NT
Broker: IB
Trading: ES
 
aquarian1's Avatar
 
Posts: 3,893 since Dec 2010
Thanks: 1,474 given, 2,496 received

I have put commonly asked questions here so as to keep the flow of the lesson thread cleaner.

..........
peace, love and joy to you
.........
Visit my futures io Trade Journal Reply With Quote

Can you help answer these questions
from other members on futures io?
Show bar number above each tick bar
EasyLanguage Programming
Capping Size in Tradestation
TradeStation
The Journey
Traders Hideout
QDEL
Stocks and ETFs
The value of High minus Open and Open minus Low.
ThinkOrSwim
 
Best Threads (Most Thanked)
in the last 7 days on futures io
Coronavirus COVID-19
25 thanks
Lost & losing hope
25 thanks
VWAP for stock index futures trading?
25 thanks
Emini 4 Tick Scalp still valid?
17 thanks
Price Action Kewltech Style
15 thanks
 
(login for full post details)
  #3 (permalink)
Point Roberts, WA, USA
 
Experience: Advanced
Platform: IB and free NT
Broker: IB
Trading: ES
 
aquarian1's Avatar
 
Posts: 3,893 since Dec 2010
Thanks: 1,474 given, 2,496 received



Quoting 
In lesson 1 part 1 we divide the total move of 20.20 into power of 2 divisions, that is, 1/2, 1/4, 1/8 etc. What about using power of 3 divisions, that is, 1/3, 1/6, 1/9 etc.?

Well the short answer is you do.

However, you are striking a balance between too many levels and not the correct ones.
I think you should make up divisions of 1/3 and 1/6 note them and then see if they strike.
Does CL turn at these points? If so then use them, and discard the power of 2 divisions that are too close to your power of 3 divisions.

You are working with the resonance, or harmony of the move.
Where does it vibrate to (and when)?

Bottom-line is you want to "tune-into" the music of these oscillations that are profitable to you and the time frame (frequency) you are trading. If you only want one trade a day, you may find that the power of 2 works better, and for 5 trades perhaps the power of 3 level works better.

At first be open and check both.
See what history shows
select and choose what it right for you.

(too hot, too cold, just right..)

..........
peace, love and joy to you
.........
Visit my futures io Trade Journal Reply With Quote
 
(login for full post details)
  #4 (permalink)
Point Roberts, WA, USA
 
Experience: Advanced
Platform: IB and free NT
Broker: IB
Trading: ES
 
aquarian1's Avatar
 
Posts: 3,893 since Dec 2010
Thanks: 1,474 given, 2,496 received


Quoting 
You referred to 20.20 as the last move. When I review the move of July CL contract I see 115.27 on May 2 and 95.18 on 5 May or a difference of 20.09, so you must be referring to June prices. When the contract rolls over from June to July, should you be using July numbers for the move?

Gann tracked each contract on its own, for example Sept soybeans, and over many years. So he knew the high of Sept soybeans each year and applied it to trading Sept soybeans.

(It may be that the contracts for agriculture products have enough volume to trade for most of the year without switching contracts. (He would close out his Sept contracts at the end of Aug and wait out the month of Sept, starting to trade again in October).

For our example the difference is small - 20.20 to 20.09 and probably doesn't matter.

Try working with both and see which gives better results.


--------------
If looking at the more esoteric concepts then the price of the high would/could matter.
So for June it was 114.83 on 2 May and for July 115.27 for that high. (I may write an "aside" on number reduction and there I will explain how it could matter.)

..........
peace, love and joy to you
.........
Visit my futures io Trade Journal Reply With Quote


futures io Trading Community Traders Hideout > FAQ for Simple estimation techniques


June 8, 2011


Upcoming Webinars and Events
     



Copyright © 2020 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts