If this market is a fractal then where is the strange attractor? If we can find the center post of a T in the daily charts using an oscillator then we should be able to discover the same center post after a cash build-up in a chart of smaller time dimension i.e. a ten minute price chart. In the above 10 minute chart of the Diamonds, I have back tested an oscillator with the help of an idea I stole from George Rahal. With attribution to George, in drawing the begining of the middle T, I disregarded the high price of 9/23/09 and began the left side of the middle T on 9/16/09. I have shown this oscillator in previous charts I have published where this function was drawn in conjunction with another oscillator, however, it is when we isolate this function that we see the predictive ability of this oscillator in determining the cash build-up phase of the T Theory.
The current T will expire this Monday, November 16, 2009 in the afternoon. In light of the fact that in the longer term time dimension of the daily charts, the most recent T has expired, leaving us in a limbo of indeterminacy where we cannot find the daily direction of a headwind for this market. I have found it best to trade in the direction of the daily trend while utilizing intra day charts for trade signals.
I put out my first short position in DIA yesterday 11/12/09 at 102.63. I plan to add to this position between now and Monday afternoon.
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3 comments:
your work is both original and thought provoking. Much appreciated! Jaxson
Thanks for the mention, DC. I too am very intrigued by your refinements of intra-day Ts and your unqiue oscilators
...Dave, it may be possible that your T expiration today 1) had a miscalculated left arm of the T (a momentum peak was earlier) or, if it is right 2) it's expiration will only produce a small sell off that can be reversed.
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