Introduction to Delta Phenomenon together with other useful approaches

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Old Feb 12, 2016, 8:33pm   #1
2be
 
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Introduction to Delta Phenomenon together with other useful approaches

Introduction to Delta Phenomenon - Market Matrix

Markets repeat directly or inversely every:
- four days
- four lunar months
- four Lunar years (12 lunar months, 354 days)
- four calendar years (16 seasons, 1461 days)
- 19 calendar years and 5hrs
Taken from: Welles Wilder, Delta Phenomenon, 1991

This particular view of cyclical interaction is the basis of Delta (Market Matrix) approach.
There might be different cycle names, different amount of rotation points on a given cycle, with some additional rules imposed on all or particular cycle/s.

In my experience Steve Copan provided the best introduction to and explanation of Delta Phenomenon, though he calls it now Market Matrix.
I would strongly suggest to Google Steve Copan and visit his site http://www.themarketmatrix.co.uk/
Please watch these videos, they are free. (starting with the introduction video)
If one can get Copan's first Delta recordings even better(IMHO).
His other Delta videos are also good.

Please also have a look at Welles Wilder book, "Delta Phenomenon".
https://www.deltasociety.com/content...er-all-markets
Robert Miner books (nothing to do with Delta) are also highly recommended, as I am using Fibs and EW alongside Delta.

After studying the above referenced material/s, one shall have a good understanding of Delta, thus avoiding confusion while trying to workout the charts with Detla count/s.

Any good work on market structure, fibs and market timing will be helpful.
Delta approach is only one of many ways to look at the market/s.

Time is the main concern of a Pure Delta approach.

However, I have been using Delta together with other concepts like EW, Fibonacci, Market Momentum, speed of change, channels, wedge formations and others especially on intra day TF.

Please keep this thread reserved to the matters related to Delta Phenomenon and other approaches that can be well used together with Delta.

Last edited by 2be; Feb 13, 2016 at 7:05pm.
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Old Feb 13, 2016, 6:30pm   #2
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2be started this thread Different names – similar approach

Markets repeat directly or inversely every:
- four days
- four lunar months
- four Lunar years (12 lunar months, 354 days)
- four calendar years (16 seasons, 1461 days)
- 19 calendar years and 5hrs

Taken from: Welles Wilder, Delta Phenomenon, 1991

Delta Phenomenon – Welles Wilder and Market Matrix - Steve Copan have eventually developed slightly different ways of this cyclical approach, I still call it Delta ( possibly incorrectly), and the cycles have been named differently.
This post attempts to illustrate this, in order to eliminate some confusion which might arise by different terminology used in respect of cycle manes.


Delta , Welles Wilder - Market Matrix , Steve Copan


Short Term Delta STD 4 days Matrix Cycle Intra-day MCI



4 weeks Matrix Cycle 0 MC0
Only in Market Matrix



Intermediate Term Delta ITD 4 lunar months, 118 days Matrix Cycle 1 MC1
MC1 - 11 Matrix points
single or double inversion



Medium Term Delta MTD 1 lunar year Matrix Cycle 2 MC2
MC2 - 12 Matrix points
single or double inversion
12 lunar months, 354 days


Long Term Delta LTD 4 calendar years Matrix Cycle 3 MC3
MC3 - 18 Matrix points
only double inversion
1461 days

Matrix Cycle 4 MC4
4 year business cycle
MC4 - 8 Matrix points
never inverts
1461 days


Super Long Term Delta SLTD 19 calendar years, 5 hours Matrix Cycle 5 MC5
MC5 - 16 Matrix points
never inverts



76.6 calendar years Matrix Cycle 6 MC6
MC6 - 18 Matrix points
only double inversion



There are apparently 89 cycles with the next one having 304 calendar years, so that one can carefully place a Trailing Stop!

It is impossible to copy and paste a word document to this forum.
Sorry for the messy appearance, as I have the original document in a word format.


Basically;
MC1 corresponds to ITD
MC2 corresponds to MTD
MC3 corresponds to LTD
MC4 corresponds to LTD
MC5 corresponds to SLTD

Please note that Market Matrix has two different cycles related to a 4 calendar years cycle and Delta has got only one cycle named LTD, one is MC3 with 18 points (if it inverts- there is only a double inversion) and the other is MC4 with 8 points, it never inverts.

MC1/ITD, MC2/MTD are of greatest interest to my style of treading, with the additional two MC3/LTD and MC4/LTD providing some more background information/perspective.

MCI and MC0 are apparently useful for intra day trading, I have tried to experiment with them with not very conclusive results, it is rather a lot of work.
One approach could be to take into computer calculation Frankfurt/London open ( or any other point of time) as a steady point of reference and calculate Matrix points from there for the given TF (4 days or 4 weeks).
The other approach would be to take the the Tide Table on a given spot of the world, and use it as a time grid for these smaller cycles. Sounds a bit voodoo, but tides are certainly related to the lunar month, which is used by delta on the basis that it provides a constant time grid (this is the only reason that lunar month have been chosen as a time grid).

Another "improvement" might be to use computer function to indicate a given point in the future using its position in a given number of previously completed cycles and averaging it.
Anyway, just an idea, currently being worked out.

PS: Few questions that have been raised by PM;

..what is meant by Matrix Points?


Matrix Points are the points where PA reverses, they are the rotation points, from which PA changes direction.

The ITD is 11 matrix points

Delta ITD and other Delta TFs have different number of these rotation/reversal points, eg. Delta count for G/U which has 12 ITD points.
Market Matrix - Steve Copan - have organised these counts differently, with much more rigidity than the Delta approach worked out by Welles Wilder


... what is meant by single or double inversion?


Inversion/s can only happen on either side of point 1, or on both sides of point 1 - this applies to every TF.

Single inversion - there is only one inversion, either before the point 1, or after the point 1.
That means that an extra point is added to either before point 1, ( eg additional point marked as(11) - last number of MC1, always in brackets ) or after point 1 (additional point marked as (1) - always in brackets).
Single inversion changes the polarity of the new cycle which is starting with the point 1.

Double inversion
- there are two inversions, two additional points on both sides of the point 1.
That means that there are two extra points inserted, one extra point inserted before the point 1 , ( eg additional point marked (11) - last number of MC1, always in brackets ) and the other extra point inserted after point 1, (additional point marked as (1) - always in brackets).
Double inversion does not change the polarity of the new cycle starting the the point 1.

Last edited by 2be; Feb 14, 2016 at 12:46am.
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Old Feb 15, 2016, 6:48pm   #3
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2be started this thread Market Structure – paramount

Market structure of HH/HL and LH/LL though on the left side of the chart is still very important.
That applies also to Delta/MM count/s on all TFs.

Looking back to the times that I started looking and studying the Delta Phenomenon, one wishes that such amount of information has been available, now much of it is free or for a price of the book.
Even so nothing of value will come without putting considerable effort.
So I would encourage everyone desiring positive results by using this perspective to take some time and study the subject.

Charting software

For many years I have been using DT (Dynamic Trader) charting package, currently DT6, created by Robert Miner, it has been a great tool for Delta and EW/fibs.

Currently working on MT4 also, some more programming is still needed, my friend is in charge of it.
There are some very useful features on both.
My programer might add some extra function to the MT4 tools, eg, additional averaging of the point's arrival taking n numbers of the previous arrivals of that same corresponding points into account, and possibly taking trend/momentum considerations into account also. The results are being compared to the results using the standard template. Much more work is needed, but with historical data function on MT4 it is possible.
MT4 advantage is the ability to switch between different TFs using that same chart.

Pro Real – good software, use it also for tick charts and some additional TFs

I have not used Scope software proposed by Steve Copan.

Other considerations

For my style of trading I put much more weight on ITD/MC1 and MTD/MC2 TFs.
I use the principle of gearing and that is one good example of it.
LTD/MC3 and MC4 are there in the background.

I also use Monthly/Weekly and Daily TFs for longer TF analysis, and Daily, H4, M30, M5 and M1 for intra-week and inta-day trading.
M1 is used purely for scalping, and M30 has proved many times very helpful in trading during the expected rotation days on ITD/MC1 TF.
H4 is also good TF in respect of ITD/MC1. Have been using that TF for many years too.

I also use S/R, PA levels at the time of the US session close, and consolidation zones – described on the other thread.
Fibs retracements (RET), extentions (EXT) and expantions (APP) in relation to PA and time are very useful too.
I use momentum and speed of change indicators (Bill Williams – provides some good insights on that).
I also use clusters of MAs like Aligator or Crocodile, (never feed a sleeping animal, is a good motto).
ATR and ADR are also important to me.
On intra day and scalping, I also use P&F and Renko.

I have been using several trading strategies for a long time (ranging from scalping to intra-week trading) applying the above. Very rarely I would hold a trade over the weekend.
I do not trade all the time during the London and US sessions.
I do prefer the first few hours of London open, and few hours around the US open.
Unless I am already in a trade I do not initiate intra-day trades after 5 pm GMT/London time.

I hope this will prove of some use to people who wish to compare it with their own way of trading and study other possible approaches to TA and the markets.

Best wishes and many good trades to all,

2be

PS
In due time I might be contributing to other forums and threads on Delta/MM, where there might be more contributors on this subject.

Last edited by 2be; Feb 15, 2016 at 7:23pm.
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