Price Forecasting with chaos

John Chen · (login for full post details)

ES completed an equilibrium however missing 2 ticks

John Chen · (login for full post details)

John Chen

ES completed an equilibrium however missing 2 ticks

follow up: ES cave has been filled as expected

John Chen · (login for full post details)

when it happens usually market moves dramatically

John Chen · (login for full post details)

when it happens 2396 the market should move dramatically downward

John Chen · (login for full post details)

it is rare resonance effect happen twice today and the second time market moved even faster downard

John Chen · (login for full post details)

People have been asked me why during last year I made fun of myself to post in mike's trading forum? For fortune or for fame? neither of them.

I hope below can provide the answer

It is very difficult for the average person to accept new thing which has not previously been seen or something is beyond his imagination；that is why if someone says; " there is now a method which can predict the market future price ", the vast majority of people will think the guy is talking nonsense, if he is not an idiot, then he must be a software salesman.

Since the market trading became daily economic activities, being able to forecast future price is always in human’s dream, but it has never come true, and as the result, people will assume and strongly believe if someone really has such a capability, he should have become billionaires and would keep it locked up as top secret, why make it public?

The answer is so obvious, if we believe

"Dreams make mankind great"
" The biggest fortune in one’s life is having a chance to pursuit and realize of his dream"

Five hundred BC ago, Pythagorean advocated “earth is a sphere” had broaden human's vision and Einstein's relativity theory in last century has brought about today's atomic technology.

Like Beyonce - I Was Here lyrics, these great men's footprints left on the sands of time, they let everyone know they were here before.

May be one day in the future, with the recognition of J-Chart’s new price logic and models, I hope I can say the same.

walker · (login for full post details)

John Chen

People have been asked me why during last year I made fun of myself to post in mike's trading forum? For fortune or for fame? neither of them.

I hope below can provide the answer......

Seems like a great method. But where can people get the software and test it out?

With best regards.

John Chen · (login for full post details)

walker

Seems like a great method. But where can people get the software and test it out?

With best regards.

Hi Walker

j-chart is real nothing but a new concept in price activity through the application of chaos theory.

In short, it is just a process to find the equilibrium through restruction of time frame continuously.

At present we use it internally to trade mainly in Chinese index futures, sometimes in ES and EUR
.
Our server structure and internet bandwidth are not capable for commerical useage; however you can modify MP

software or even write your own tick excel display program to achieve same purpose once you understand the basic logic.

By the way, I have completed a manscript to introduce j-chart concept in English and try to publish it through Harriman, but unfortunately they could consider the book for publication only if it is professional edited. in other word my english is not good enough to convert the concept to the public.

Rgds

John

Silvester17 · (login for full post details)

walker

Seems like a great method. But where can people get the software and test it out?

With best regards.

@walker,

certain data providers offer a free trial.

good luck

|| J-Chart™ || Charting Markets into the Future. Index Futures, Forex, Stocks, Bonds

John Chen · (login for full post details)

1) Yesterday after close, we noticed a equilibrium 2403--2383--2363 was not completed and 2383 was its balance point
if market open lower the and two ends of EQ hold then lower part of EQ shall be filled first

2) market open at 2375, it is good trade to sell the market near the BP with stop buy order above it and expect the low end of EQ will be achieved.

3) market did zigzag between 2383 and 2363 untill afternoon

4) price surged through 2383, stop buy order executed, not for long new BP 2390 seen and target estimated was 2417

5) out market before 2417

John Chen · (login for full post details)

I am helping traders to learn how to day trading Chinese index futures currently from 8:45AM--3:00PM Taiwan time

if anyone is interested please download the teamviewer 8 and contact me through skype ID J-Chart

John Chen · (login for full post details)

it reached boundary of equilibrium

John Chen · (login for full post details)

John Chen

it reached boundary of equilibrium

the equilibrium will be most likely the range for the holiday

John Chen · (login for full post details)

Although it is the X'mas the chinese index futures made a nice run

buyers get very fruitful gift for holiday

John Chen · (login for full post details)

There is day trade oppertunity since we knew bounded range

sharmas · (login for full post details)

John

You are a true Legend.
Your call was amazing and I took short entry at 1.3236 and 1.3235 for 2 contracts and had my target set at 1.3206 and it go hit.

What a night and thank you for your support and guidance

You are simply the best when it comes to forecasting.

Really appreciate your support and guidance.

Sharmas

John Chen · (login for full post details)

A friend of mine who is a mathematicians at least I think he is, likes to tell me if a trader always day trade the trader will lose his pants eventually, all his money will go to exchanges just like what is happening in the casino. however he forget to mention there are card counters who are prohibited to enter the casino

people who find his way to foresee the shorterm target during daily session is the card counter and fortunately he wouldn't be banned by exchanges

charts shown is how chinese index futures target was predicted during today's seesion

paps · (login for full post details)

Came across this journal while trying to understand Volume Profile using tradestation.

Hi John Chen this seems to be a very novel way of looking at PA. Great Journal. Also thnx to ecmf & Simba and other contributors. As usual thanks to Big Mike w/o him we would never get insights into sharing of idea's.

One thing I also do believe in some of the concept of Time & agree before the BB. I am always open to any idea which will give me an edge. I will always be a student of the markets....coz it can humble me anytime...so will always be a beginner. I also believe with any new concept the early adopters will always have an edge....if the strategy is sound & risk mgt in place.

John...what i understand from the thread...an english version of J-Charts is yet to be published. Is there a way to educate us more on the concepts since the the book seems to be a lil aways. How does one integrate the concepts if one wants to know more and integrate in their trades. Also curious how Simba is integrating in trading.

John...is this only good for intra-day or swings "50-75pts" and more?.... I do trade ES "Emini S&P". Would the theory be able to predict price....getting into the last day of the year...or the end of Jan '13.? if so any forecasts

?

Anyways thanks for sharing & Good Luck !!

thnx

John Chen · (login for full post details)

paps

Came across this journal while trying to understand Volume Profile using tradestation.

Hi John Chen this seems to be a very novel way of looking at PA. Great Journal. Also thnx to ecmf & Simba and other contributors. As usual thanks to Big Mike w/o him we would never get insights into sharing of idea's.

One thing I also do believe in some of the concept of Time & agree before the BB. I am always open to any idea which will give me an edge. I will always be a student of the markets....coz it can humble me anytime...so will always be a beginner. I also believe with any new concept the early adopters will always have an edge....if the strategy is sound & risk mgt in place.

John...what i understand from the thread...an english version of J-Charts is yet to be published. Is there a way to educate us more on the concepts since the the book seems to be a lil aways. How does one integrate the concepts if one wants to know more and integrate in their trades. Also curious how Simba is integrating in trading.

John...is this only good for intra-day or swings "50-75pts" and more?.... I do trade ES "Emini S&P". Would the theory be able to predict price....getting into the last day of the year...or the end of Jan '13.? if so any forecasts

?

Anyways thanks for sharing & Good Luck !!

thnx

J-Chart is only using price counts to plot a chart on nonfixed time frame and to find the fractal based on chaos theory which is totally nonlinar, another word no volume of trade are used therefore it is different from Volume Profile.

I have published two books in Chinese for China and Taiwan, if you are interested you can find them through publisher

³Õ«È¨Ó®ÑÄyÀ]>J½u¥¿¦r¹Ï¡D½u¹Ï¤j*²©R or Ìì»ú£ºÔ¤¼û¼ÛÎ»µÄ½ðÈÚ´ó¸ïÃü£¨¸½¹âÅÌ£© - µ±µ±Íø

you can do swing trade with J if you have patience to wait for it may take days to get what you want, however after 35 years trading carrer I don't have patience to engage in trades longer than a day, have you ever see card counter stay over night play black jack in casino

I always compensate that with bigger volume to get what I want

paps · (login for full post details)

Nice ...but will wait for your book in english

have quite a few other projects in hand so not in any hurry.

thnx & good luck !!

John Chen · (login for full post details)

people who find his way to foresee the shorterm target during daily session is the card counter and fortunately he wouldn't be banned by exchanges

charts shown is rebar metal which has the largest volume over 2.4m contracts/per day

John Chen · (login for full post details)

John Chen

it reached boundary of equilibrium

after holiday eur is paving the cave as expected

John Chen · (login for full post details)

John Chen

after holiday eur is paving the cave as expected

eur most likely will zigzag in the cave for few days

John Chen · (login for full post details)

Many people argue historical record or backtesting method is the best way to check out a trading system.

Well, in my opinion it is a terrible misperception. the crystal shoe of Cinderella doesn't guarantee us to find another Cinderella.

keep in mind! price activity is chaotic nature, the perfect trading module you found through backtesting must be tailor made, use them to find a beauty, you might end up with an ugly one.

John Chen · (login for full post details)

people who can foresee the shorterm target during daily session has a relaxing way to trade

charts shown is chinese index futures, its contract size is the 4 time ES and its daily volume currently about 1/2million contracts

we anticipate within few years it will be futures with largest trading volume

John Chen · (login for full post details)

TX contract finish an equilibrium 7799--7756--7713 today if it broke tomorrow another EQ can be expected as shown

any price activity will subject to chaos theory as long as trades done is in a free market

John Chen · (login for full post details)

Yesterday mentioned "TX contract finish an equilibrium 7799--7756--7713 today if it broke tomorrow another EQ can be expected as shown"

Today market traded as expected. price through so called chaotic process to achieve a new equilibrium

John Chen · (login for full post details)

EUR market is undergoing the same chaotic process in order to achieve equilibrium

trade can be place in between BP as shown

John Chen · (login for full post details)

chart shows London gold wait for right moment and/or excause to jump

John Chen · (login for full post details)

It is an exciting day to be able to locate the entry, exit and also reverse

John Chen · (login for full post details)

USDJPY is the hot topic now

let's see what is going to happen

John Chen · (login for full post details)

Restruction of Spot gold Chart (150 days )

BP and end of equilibrium can be useful as support or resistance

John Chen · (login for full post details)

A perfect EQ is constructing

let's see what is going to happen

John Chen · (login for full post details)

perfect EQ is broken

9180 TARGET is on the horizon

John Chen · (login for full post details)

John Chen;297086]perfect EQ is broken

9180 TARGET is on the horizon

Target 9180 reached as expected

John Chen · (login for full post details)

A big EQ from 8/23 was broken it implies higher target is reasonable

John Chen · (login for full post details)

[ATTACH]Attachment 101548[/ATTACH]]A big EQ from 8/23 was broken it implies higher target is reasonable

Big equilibrium are consisted of small equilibriums

Short term sell can be fruitful in an up trend

John Chen · (login for full post details)

It paused after achieving the equilibrium

John Chen · (login for full post details)

A cave like the Black hole it offers an strong suction once market broke the OPENNING EQ plus the EQ from previous day

Profit is almost guaranteed

typer77 · (login for full post details)

Hi Mr. Chen,
Do you mean the yellow dotted box?
What is Jchart suggesting market will be heading?
I am still trying to understand more.
thanks
jack

John Chen · (login for full post details)

The first sell was initated when 2785--81--2777 (openning EQ)and 2776 low of PREVIOUS EQ broken

for future market activity It will be trapped in the cave first, however if the other EQ in yellow dotted penetrated it will be sucked to the lower hole

John Chen · (login for full post details)

for future market activity It will be trapped in the cave first, however if the other EQ in yellow dotted penetrated it will be sucked to the lower hole

As expected market trapped and bounded by two EQ yellow and green

typer77 · (login for full post details)

Hi Mr. Chen
Which EQ are you referring to that if it breaks it will get sucked lower?
Thanks
Jack

John Chen · (login for full post details)

Unlike conventional indicators, equilibrium is good way to use as support or resistance

John Chen · (login for full post details)

John Chen

It paused after achieving the equilibrium

USDJPY did retreat and tried to pave the cave,

It is the necessary process before resume its upward move

John Chen · (login for full post details)

Gold couldn't break1696.5, consolidating within an equilibrium

ecmf · (login for full post details)

Hello all,

The English translated book from the original is finally done.

Interested traders can take a look here: Trading with J-Chart Price forecast is possible: John Chen, Eddie CMF: Amazon.com: Kindle Store

Best wishes to all followers of this thread.

-ecmf

John Chen · (login for full post details)

Gold couldn't break1696.5, consolidating within an equilibrium

after reconstruction gold it is very interesting to see how fractal works

John Chen · (login for full post details)

shown in above chart EQ 1696.5--1661.5-- 1625.6 and 1796--1711--1626 penetrated therefore market plunged

However 1796--1696.5---1597 holds so far

John Chen · (login for full post details)

Exchange in fact is a casino operated by government

trader being able to foresee imminent future price is the "card counter"

typer77 · (login for full post details)

John Chen

Exchange in fact is a casino operated by government

trader being able to foresee imminent future price is the "card counter"

Well said!

John Chen · (login for full post details)

gold should sell when EQ 1796--1696.5---1597 broke

it drops like a rock

COTtrader · (login for full post details)

John Chen

gold should sell when EQ 1796--1696.5---1597 broke

it drops like a rock

John,

新年快乐! Our family lived in Taipei and Kaohsiung for 17 years. We left Taiwan in 2008 and returned to the U.S. I worked for Studio Classroom for 9 of those years.

What district do you live in?

COTtrader

John Chen · (login for full post details)

Index futures retreated and two EQ with same image point met the requirement of resonance

John Chen · (login for full post details)

COTtrader

John,

新年快乐! Our family lived in Taipei and Kaohsiung for 17 years. We left Taiwan in 2008 and returned to the U.S. I worked for Studio Classroom for 9 of those years.

What district do you live in?

COTtrader

HI

I am living in Taipei

John Chen · (login for full post details)

compare these three charts up to now 1603 holds

John Chen · (login for full post details)

Previous chart shown if 1603 broke the second target would be around 1594

It did

John Chen · (login for full post details)

1603 brcame day trade resistance and target surface as expected

patience is the virtue which most guys lack of including myself

John Chen · (login for full post details)

Attached is Chinese index futures morning trade

1) Bought above BP 2675 after open out before 2683 the tip of EQ

2) Sold when 2671 taken out , stop buy was above 2670

3) Bought back at 2657 low as 2656.8

John Chen · (login for full post details)

once EQ 2647--2636--2625 crack

sell opportunity surface

a huge downward move is rewarding

John Chen · (login for full post details)

EUR has to hold the bottom of EQ in order to move up

John Chen · (login for full post details)

EUR has to hold the bottom of EQ in order to move up

EUR moved to 13074 near the predicted target 13076

and continue its EQ saturation attempt

John Chen · (login for full post details)

Student always ask how to find equilibrium in a chaotic market attached two charts shows how

John Chen · (login for full post details)

The EQ was broken it implies gate is opened for more downward move

John Chen · (login for full post details)

During cave paving the lower BP appeared

John Chen · (login for full post details)

After 2 days paving the cave of equilibrium EUR is almost ready to make the move

second chart is the follow up on day trade

13133--13028--12923

John Chen · (login for full post details)

EUR gap down and zigzaging in dotted area

John Chen · (login for full post details)

On 3/8 EUR broke the EQ 13160--13062--12964

We were given a signal that price would go lower because a lower BP 13000 formed and the 12840 should be the target

After couple days cave paving process price finally reaches 12843 low today so far

John Chen · (login for full post details)

SINCE EQ 13160--13000--12840 held and there are cave to be paved

sold 6E 12971 and 12977 out by 12950 revese BUY out by 12975

John Chen · (login for full post details)

When Resonance happens market trend usually reverses its direction

Attached is a good example of Taiwan index futures

John Chen · (login for full post details)

EUR complete the 13160--13000--12940EQ also left an area between 12948 and 13056 unfilled

A external Cyprus news help trigger the upward paving movement

John Chen · (login for full post details)

It is a typical example of BUY THE RUMOR , SELL THE FACT

John Chen · (login for full post details)

When price breaks EQ and significant high and/or BP it is a good and for sure winning trade

USDJPY was consolidating below 9444 once it breaks, buying is a nice option

The profit target can also be predicted as EQ 9352---9418---9484

jta3 · (login for full post details)

Don't you use fib.?

Here some fib line. all set before hit.

https://www.tradingview.com/x/MVIaglzf/

John Chen · (login for full post details)

jta3;315166 Don't you use fib.?

Yes I use it for day trade target comfirmation only, as chart show there is Fib no. on lower right corner

In 1980th I did use fib's extention to predict target but it wasn't good enough in day trade

In day trade I like to look for the possible target in next 15-45 minutes

John Chen · (login for full post details)

EUR has formed the boundary of A EQ

13064--12898--12750,
12753--12798--12843 Rebound EQ offer day trade selling oppertunity

John Chen · (login for full post details)

Since 3/26 EUR has been traded in lower part of EQ 13046--12898--12750,

In upcoming week, the breach of 12750 could lead EUR to test previous low of last NOV

John Chen · (login for full post details)

Since 3/26 EUR has been traded in lower part of EQ 13046--12898--12750,

In upcoming week, the breach of 12750 could lead EUR to test previous low of last NOV

And if 12620 falls through there are caves need to be filled in a longer term

Attached is the J-Chart of EUR for 500 days and is considered only usueful for fund long term trading

John Chen · (login for full post details)

EUR 12749 so far held rebound expected also EQ is formed

John Chen · (login for full post details)

John Chen

EUR 12749 so far held rebound expected also EQ is formed

For day trade sold 12864 can get out at BP 12812 or move trailing stop

John Chen · (login for full post details)

It was a clear winning trade

John Chen · (login for full post details)

Glod has hit the bottom of EQ
Cave paving is expected unless bottom of EQ fall through

John Chen · (login for full post details)

John Chen

Glod has hit the bottom of EQ
Cave paving is expected unless bottom of EQ fall through

It has been a reasonable and good profitable trade to be buyer and EQ target 1573.5 has been reached

John Chen · (login for full post details)

A perfect EQ can guarantee profit

John Chen · (login for full post details)

John Chen

A perfect EQ can guarantee profit

When the bottom of EQ shown on 4/5 fall 1432 looks like will be the target

John Chen · (login for full post details)

John Chen

When the bottom of EQ shown on 4/5 fall 1432 looks like will be the target

Gold only took less than a day to reach the target

John Chen · (login for full post details)

John Chen

When the bottom of EQ shown on 4/5 fall 1432 looks like will be the target

rebound can't go over EQ boundary it is a profitable quick sell

John Chen · (login for full post details)

Instead the MA the boundary of EQ always acts better and efficent as the support or resistance

as we can see the above cash gold example

John Chen · (login for full post details)

Gold plunged to its target low of the day

A nice $30 rebound after reached target bottom of the EQ

It's in God hand!

John Chen · (login for full post details)

Anyone who is interested in how the invisible hand of market works can borrow the book from amazon.com for free

John Chen · (login for full post details)

Gold completed its EQ 1495.5---1408----1320.5

a consolidation is expected

John Chen · (login for full post details)

Gold Rebound and hit the wall of EQ's boundary

1321.5---1363---1404.5

1348-----1376---1404

possible resonance

John Chen · (login for full post details)

1321.5---1363---1404.5

1348-----1376---1404

Resonance works well

means it is good sell around the top area of EQ

John Chen · (login for full post details)

1321.5---1363---1404.5

1348-----1376---1404

once the PREVIOUS EQ breached, Gold moved up and achieved another EQ

In fact it hits resistance since both two EQ point to same boundary, seller has upper hand

John Chen · (login for full post details)

After the EQ breached, Gold moved up and achieved another EQ

It is a very strong resistance and not easy to get through

John Chen · (login for full post details)

AS quoted on 4/26 :It is a very strong resistance and not easy to get through

after struggle for 5 days

It deopped almost 40 dollars

John Chen · (login for full post details)

Gold reach EQ boundary then reverse break down side EQ

It is a good day trade sell

John Chen · (login for full post details)

Gold reach EQ boundary then reverse break down side EQ

It is a good day trade sell

REASONABLE EXIT

COTtrader · (login for full post details)

Interesting spectacle using the isosceles triangle ...

Although different from J-Charts, it does show interesting confluence and it is a 240 min TIME CHART

Ken COTtrader

John Chen · (login for full post details)

COTtrader

Interesting spectacle using the isosceles triangle ...

Although different from J-Charts, it does show interesting confluence and it is a 240 min TIME CHART

Ken COTtrader

Well done!

This shows you are a advance trader for sure

However during last 30 years trading carrer I have seen a lot of big firms went backrupt over night, therefore I only prefer day trading which allows me sleeping peacefully at night

long term analysis is a frame wok for day trade reference only

Also attached chart is a example of the application of FIB in J-Chart

Price Forecasting with chaos

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