Welcome to NexusFi: the best trading community on the planet, with over 150,000 members Sign Up Now for Free
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 for basic access, or support us by becoming an Elite Member -- see if you qualify for a discount below.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
The single most important chart in your setup, and why
The Laplace distribution, one of the earliest known probability distributions, is a continuous probability distribution named after the French mathematician Pierre-Simon Laplace. Like the normal distribution, this distribution is unimodal (one peak) and symmetrical. However, it has a sharper peak than the normal distribution. The Laplace distribution is the distribution of the difference of two independent random variables with identical exponential distributions (Leemis, n.d.). It is often used to model phenomena with heavy tails or when data has a higher peak than the normal distribution.
This distribution is the result of two exponential distributions, one positive and one negative; It is sometimes called the double exponential distribution, because it looks like two exponential distributions spliced together back-to-back.
For those in finance, what this means is that large moves are even less likely than a normal distribution
and if anyone other than me has noticed, they all too often use a normal (Gaussian) distribution in discussing things...
my personal discovery from plotting things is what woke me up
but its not unknown
Broker: Broker: Trade Future 4 Less. Data Feed/Order routing: CQG
Trading: DAX; ES; Bund Futures
Posts: 77 since Oct 2018
Thanks Given: 49
Thanks Received: 57
Thanks - Yes work most of the time !!!!! - But one have to find out best trading times of the day. For me it works best between 8 AM to 10-11 AM and again from 15 PM to 17:30 PM all central European time.
John Ehler's discusses Laplace distribution in Rocket Science for Traders. He also explains the failings of Gaussian distributions in his varied writings.
So to keep this chart related and on-topic, here is my favorite chart this week, with Ehler's Hilbert Transform and Even Better Sinewave indicators:
Care to explain this in simple terms? I dont understand how it matters whether its laplace or gaussian or whatever other name you wish to associate with the structure. From the image you posted, both models share similarities in that they have extreme outliers with the majority of data points evenly distributed around the median, just that one looks spiky and the other looks rounded. Your sample was only over two days and might be a poor representation of the total population. 1.2 million price moves means nothing in the context of the current environment. And how well does this model hold up when measured against months of data under the numerous market conditions? When all that is defined, how do you actually use the information to trade?
My single most important chart is the 5m bar chart. Who doesn't like a 5m chart...or the tick chart equivalent? . It's interesting to see all the different charts traders use. They all display the same thing, except maybe warped in some way, to fit the individual trader's eye. It's like a glimpse into the soul....
I voted for time based charts and context - I use a 60M chart for an intermediate look and a 20M chart for decision making. I use a renko chart for entries after a decision has been made but without the 20M, the renko is somewhat useless. I have tinkered with a renko chart that is similar in nature to a 20M chart but haven't stumbled upon anything I like. I used to flood my charts with indicators but nowadays I am just using bid|ask & up|down delta for confirmation of zones/areas of interest/etc.
I use a modified mean renco chart. I trade with two monitors and the second monitor I use a 60-minute chart primarily for support and resistance. I'm a scalper and rarely in any trade for more than 10 minutes. Works good for me. I stopped trying to predict what the market is going to do a long time ago and just stick with price action.
. It's interesting to see all the different charts traders use. They all display the same thing, except maybe warped in some way, to fit the individual trader's eye. It's like a glimpse into the soul...
.