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Direct MessagesDate/Time: Sun, 19 May 2024 22:50:42 +0000
Post From: Reversal Bars
| [2016-01-10 15:33:53] |
| User884307 - Posts: 173 |
|
Hi there, Okay I now have had more time to read your last post and to be able to answer more fully. You mentioned in your post of P&F being from the dark ages and that reversal bars are better (which they are) but I get a hunch that you are not really understanding the actual application of the P&F charts in real world situation, for example, where you aware that the way of reading REVERSAL BARS is to use the SAME logic to read P&F charts? You need to have a mindset to introduce more of a relationaship between the two studies as there is MOST definately a relationship there, Im not comparing by any means, but MarketDelta does understand this relationship. Your answer does somewhat over complicate an issue that is in essence a very simple solution which I have outlined below, THIS WILL RESOLVE THE ISSUE :-) Assume for example 5 tick reversal chart .......... 1) Establish a bar that is greater than 5 tick and its direction, say UP ..... this will consist of X's 2) The very NEXT BAR will ALWAYS, ALWAYS, ALWAYS be a column of O's regardless if it closes UP, DOWN on highs/lows etc etc , the next bar to this will ALWAYS be X's, the next bar ALWAYS O's ........ and so on. By establishing this longer column of X's, the next bar will always be a pullback to the previous column, not continuation and therefore an opposite X or O according to direction. The same is true for the downside but O's for longer than 5 tick bars and ALWAYS an X goes in the next column, then an O in column after etc etc. By the very nature of the reversal bar, you will notice that then every long up bar will be an X, every long down bar will be an O whilst every adjacent column will be an opposing letter ("LONG" bars meaning longer than the than the reversal amount, in this case 5 ticks). You will also notice the choppy areas where the bars are no bigger than the minimum tick revesal amount will also have opposing letter to the previous bar and in total conformity to all other bars I.E. EVERY OTHER BAR WILL BE OPPOSITE TO THE PREVIOUS BAR AND EVERY LONGER UP BAR BE X'S AND EVERY LONGER DOWNBAR BE O'S hence a reversal chart of XOXOXOXOXOXOXOXO etc etc etc. It is important to remember using X's and O's are NOT about plotting X's for all up bars and O's for all downbars as this is meaningless practically. Also this display type I feel only works with REVRSAL BARS as using any other bar display doesnt give any practical application. SO, ALL IN ALL A VERY SIMPLE FIX TO A VERY SIMPLE PROBLEM, IF YOU CAN ACCEPT THERE IS A FAAAAAAAR MORE DIRECT RELEATIONSHIP BETWEEN REVERSAL AND P&f AS ONE OF THE SAME (IN ANALYSIS & USE) THAN I THINK YOU REALISE AT PRESENT, ALL IS ULTIMATELY GOOD :-) Cheers |