Hi Randy, The Pi can show useful information on how fast the upward or downward waves come back to the center (mean to reversion) but we do not discuss this information in our simplified price action. So the the second opposite wave may not come back to the center quickly and could be more than double of the first Pi (as the market range expands). We get more useful price action information by comparing the length of URL and DRL to gauge the seller/buyer pressure and momentum in the trends.
Also, at 6:57 candle 9 is the lowest low for the candles before and after. Candle 10 and 11 are close but not the same , they are higher lows. According to your assessment of what swing highs and lows are, wouldn't this satisfy your condition? Only to later find price make another low?
By the, I'm speaking as if you were seeing these candles appear real time, so you wouldn't see candle 12 yet, so after candle 10 and 11 form, you would think that you had the swing low wouldn't you?
Hi Randy, Thanks for your interest and good question! In live market, you are right and the candle 9's trough with its 2 higher high of candles 10 and 11 marks the formation of SL. As market continues to fall and form another lower low on the trough of candle 12, without forming any SH, the trader has to update the DRL range as shown in this post market chart data and use the trough of candle 12 instead of candle 9. We explained this sequential SH/SL concept with many examples in the Drills 21 to 30 of the Workshop 2.
Being able to see which line is longer, URL or DRL, ok I get that, but what are the implications of it? You're saying there are more buyers in the market, but what are the implications on what is going to happen next? In your chart at 8:14 , you show the 2nd and 3rd SL, but don't show the line in between, 4 candles from the 2nd SL as a swing high. I believe that's because it didn't break the old swing high, but you don't touch on this concept at all in your identifying SH/SL explanation videos. I'm not trying to be argumentative her, but this is one concept after a ton of time studying in the markets that still somewhat evades me, how to group swing highs and lows properly, because technically if you're upholding that the other swing highs don't exist because they haven't broken swing lows, the 2nd and 3rd swing low shouldn't exist because you were still within the range of the first SL to SH range that exists. Only the last leg breaks the original Swing low, making the first marked SH as the swing high. In the journey down from what would be the unmarked second swing high down to the 3rd marked swing low is the same distance as it travels up to what would be the unmarked 3rd swing high, why does the last leg come down so far and take out both of the swing lows if they're equal distances? I know through my knowledge of Wyckoff and institutional trading concepts that the next swing after that can still be very likely to match, not exceed the original swing high as the final stretch of a trend, or because the correction is now finished and the main trend resumes. How would you suggest understanding the grouping of relevant swing highs and swing lows to predict whether or not the break of structure actually means anything? I have pretty advanced knowledge in a lot of this, but this very fundamental concept still holds me back from fully being able to master this. Any assistance you could provide would be very appreciated, thank you.
Hi Randy, Thanks for your interest and good questions on this topic! Please see the answers to each question below: ... what are the implications of it? > In this basic section, we deliberately want to only focus on drawing the range lines and comparing 2 consecutive ones. This skill becomes the basis for advanced Price Action lessons/drills, so please continue and read these sections that show the application of range analysis: - "Workshop 6: Relationship between Pattern and Range" - "Workshop 10: Momentum Range Analysis (MRA)" These skills become an important part of Algo 2 Entry Setup, which is the Momentum analysis of the Structure Chart and is discussed here: - "Module 10: PAAT Process and Algo Advanced - Part A - Workshop 29 - Momentum Filter Also, the range concept is applied to the Dynamic Channel Range, which is an important filter when the volatility of the market is too high to trade and we discuss that topic in our Trading Plan filters at: - "Workshop 35: Trading Personalization - Lesson 4 - Average Range for a selected Time Frame" - "Workshop 36: PAAT Checklist and Recording/Journal - Lesson 7 & 8 - Volatility Filter" So because of the deliberate Practice design of our training/coaching, we unfold each concept and application of them gradually in more advanced modules. So if I try to summarize the range analysis application in our trading system is that: When the structure chart pattern is trendy (Algo 1 passed), we apply Momentum Range & Slop Analysis (Algo 2) to make sure we are not at the end of a trend. We want to catch the start of an emerging Trend and continue to take its pullbacks till its momentum is gone, indicating that the trend could end or have a major correction. End of Trend is a very dangerous area and traps many novice traders and we unload our positions when we see Algo 2 fails.
... In your chart at 8:14, you show the 2nd and 3rd SL, but don't show the line in between, 4 candles from the 2nd SL as a swing high. .. ... why does the last leg come down so far and take out both of the swing lows if they're equal distances? You're saying there are more buyers in the market, but what are the implications on what is going to happen next? > In this picture, I wanted to intentionally show the 3 possible fates of the next SL (the last 3 SL charts), when the first right hand SH is formed. I should have put an arrow and numbered it to prevent confusion. So the coming pullback that is forming the next SL could be (1) slightly lower as seen on the 2nd Chart, (2) reach the same previous SL level (3rd Chart), or cross the previous SL (4th chart). Each time under these 3 scenarios, we can see the different length of Downward Range Line (DRL)
Excellent video
thanks
Sir you are genius ❤🙏🙏
Thank you Dude Perfect :)
3 hours ago
On the Sin wave graph at :10 What is the significance in Pi? Also, why is 2Pi shorter than actually multiplying the distance of the first line by 2?
Hi Randy,
The Pi can show useful information on how fast the upward or downward waves come back to the center (mean to reversion) but we do not discuss this information in our simplified price action. So the the second opposite wave may not come back to the center quickly and could be more than double of the first Pi (as the market range expands).
We get more useful price action information by comparing the length of URL and DRL to gauge the seller/buyer pressure and momentum in the trends.
Good videos.
Thank you Ja and glad it was helpful :)
Also, at 6:57 candle 9 is the lowest low for the candles before and after. Candle 10 and 11 are close but not the same , they are higher lows. According to your assessment of what swing highs and lows are, wouldn't this satisfy your condition? Only to later find price make another low?
By the, I'm speaking as if you were seeing these candles appear real time, so you wouldn't see candle 12 yet, so after candle 10 and 11 form, you would think that you had the swing low wouldn't you?
Hi Randy,
Thanks for your interest and good question! In live market, you are right and the candle 9's trough with its 2 higher high of candles 10 and 11 marks the formation of SL. As market continues to fall and form another lower low on the trough of candle 12, without forming any SH, the trader has to update the DRL range as shown in this post market chart data and use the trough of candle 12 instead of candle 9. We explained this sequential SH/SL concept with many examples in the Drills 21 to 30 of the Workshop 2.
rất hay, tôi là người Việt Nam và tôi đã đăng ký kênh của bạn
Thanks
Does the SL & the SH must not share candles bewtween them?
It can have candles between them if it is not a simple standard SH or SL. Please refer to the lessons on Non-standard complex SH and SL.
Being able to see which line is longer, URL or DRL, ok I get that, but what are the implications of it? You're saying there are more buyers in the market, but what are the implications on what is going to happen next? In your chart at 8:14 , you show the 2nd and 3rd SL, but don't show the line in between, 4 candles from the 2nd SL as a swing high. I believe that's because it didn't break the old swing high, but you don't touch on this concept at all in your identifying SH/SL explanation videos. I'm not trying to be argumentative her, but this is one concept after a ton of time studying in the markets that still somewhat evades me, how to group swing highs and lows properly, because technically if you're upholding that the other swing highs don't exist because they haven't broken swing lows, the 2nd and 3rd swing low shouldn't exist because you were still within the range of the first SL to SH range that exists. Only the last leg breaks the original Swing low, making the first marked SH as the swing high. In the journey down from what would be the unmarked second swing high down to the 3rd marked swing low is the same distance as it travels up to what would be the unmarked 3rd swing high, why does the last leg come down so far and take out both of the swing lows if they're equal distances? I know through my knowledge of Wyckoff and institutional trading concepts that the next swing after that can still be very likely to match, not exceed the original swing high as the final stretch of a trend, or because the correction is now finished and the main trend resumes. How would you suggest understanding the grouping of relevant swing highs and swing lows to predict whether or not the break of structure actually means anything? I have pretty advanced knowledge in a lot of this, but this very fundamental concept still holds me back from fully being able to master this. Any assistance you could provide would be very appreciated, thank you.
Hi Randy,
Thanks for your interest and good questions on this topic! Please see the answers to each question below:
... what are the implications of it?
> In this basic section, we deliberately want to only focus on drawing the range lines and comparing 2 consecutive ones. This skill becomes the basis for advanced Price Action lessons/drills, so please continue and read these sections that show the application of range analysis:
- "Workshop 6: Relationship between Pattern and Range"
- "Workshop 10: Momentum Range Analysis (MRA)"
These skills become an important part of Algo 2 Entry Setup, which is the Momentum analysis of the Structure Chart and is discussed here:
- "Module 10: PAAT Process and Algo Advanced - Part A - Workshop 29 - Momentum Filter
Also, the range concept is applied to the Dynamic Channel Range, which is an important filter when the volatility of the market is too high to trade and we discuss that topic in our Trading Plan filters at:
- "Workshop 35: Trading Personalization - Lesson 4 - Average Range for a selected Time Frame"
- "Workshop 36: PAAT Checklist and Recording/Journal - Lesson 7 & 8 - Volatility Filter"
So because of the deliberate Practice design of our training/coaching, we unfold each concept and application of them gradually in more advanced modules. So if I try to summarize the range analysis application in our trading system is that: When the structure chart pattern is trendy (Algo 1 passed), we apply Momentum Range & Slop Analysis (Algo 2) to make sure we are not at the end of a trend. We want to catch the start of an emerging Trend and continue to take its pullbacks till its momentum is gone, indicating that the trend could end or have a major correction. End of Trend is a very dangerous area and traps many novice traders and we unload our positions when we see Algo 2 fails.
... In your chart at 8:14, you show the 2nd and 3rd SL, but don't show the line in between, 4 candles from the 2nd SL as a swing high. ..
... why does the last leg come down so far and take out both of the swing lows if they're equal distances? You're saying there are more buyers in the market, but what are the implications on what is going to happen next?
> In this picture, I wanted to intentionally show the 3 possible fates of the next SL (the last 3 SL charts), when the first right hand SH is formed. I should have put an arrow and numbered it to prevent confusion. So the coming pullback that is forming the next SL could be (1) slightly lower as seen on the 2nd Chart, (2) reach the same previous SL level (3rd Chart), or cross the previous SL (4th chart). Each time under these 3 scenarios, we can see the different length of Downward Range Line (DRL)