Strategy development

[dbphoenix]

Maybe this framework might others.

:idea: behind continuation /reversal framework thinking:

So in potential a successful retracement and the succefull continuation of a BO are of the same "continuation" category.

The two other categories of rational price discovery to keep in mind are:
-the family of nasty small moves as "chop, sideways action, etc.".
-and last but not least the "reversal" category;

Yes, a continuation is a successful retracement. But it's also a successful breakout after a consolidation and a successful reversal. Therefore, a continuation is not a trading strategy per se. Again, the three categoreis are breakouts, retracements, and reversals.

As for "price discovery", that's simply a fact of the auction market and not a trading strategy, though perhaps I misunderstand the point of your post.

Have you finished reading the PVracticum yet?

 

[contrakt]

very helpful

Have you finished reading the PVracticum yet?

DB, keep me posted on further updates .Yes have read it.
Thanks for the update.

Have been busy :
1] watch printed out charts to finetune my framework of the relevant market.
2] have designed tailormade real time simulator(vba excel/ib data/ with database) that allows
me to scale in and out and apply different stops on portions.
3] work on a tool to calculate range statistics of the instruments I watch.
4] in the middle of "techniques of tape reading" by vad.

Next project: design a lineoutreport for the performance stats of each strategie in the db.

My framework for intradday trading will evolve around the concept of range and direction, continuation(after bo or retracement) and reversal on 3 different timeframes. max. 6 charts.

The tape is still the boss