Crypto markets present us with a set of trading circumstances that are almost
ALWAYS present in the marketplace … for example, 1) high VIX, 2) ZERO central
bank manipulation of price and/or VIX, and 3) close to 100% of the entire
marketplace is spec dominated, especially leveraged perpetual futures, which is
where the vast majority of today’s volumes and liquidity lie … I’m sure there are
others, but this tops the list, and it’s gotten to the point where it’s pretty much
assumed by the trading public they’re always gonna be there … and that drives
trader perceptions and further increases VIX, cuz traders know how fast &
vicious these markets can move and bury them if they’re wrong, and so traders
react en masse … and that leads to highly tradeable markets with high
probabilities of success if modeled correctly.
The graphic in the header resembles what trading is really like in MULTIPLE
DIMENSIONS, not simply the 2D of price & time … enter in other critical variables
and what you’re missing in the 2D map, you can see clearly in 3D … now I know
what your thinkin’ … your initial natural inclination is to assume that VIX [volatility]
is gonna be the missing ingredient, but I’m here to tell you that’s a “dicey”
proposition not really backed up by the data, in traditional markets like FX, and
specifically GBPJPY … from the research I’ve done measuring ranges of M1’s
over different time periods and bull, bear, and dead market moves, there’s only
about a 10% - 15% difference in ranges from the biggest UP/DOWN days versus
dead days … in other words, you only can measure slight differences in ranges,
but the fact is the market either moves or it doesn’t, so measuring VIX and thinking
it’s the key to riches from scalping is a non-starter IMHO … you can assume from
the graphic in the opening header, that a “buy fuel” signal will come right before
the graphic goes parabolic upward … well, if it ain’t VIX what can be a telltale
sign of imminent price movement? … remember, in crypto pairs you don’t need
this, cuz it just complicates things, simply cuz those markets are crazy all of the
time most days … but in traditional manipulated markets, as central banks do
their best to control & manipulate VIX on behalf of the scumbag banks, what
measure is there that gives us the 3D pic directly below, which is what’s going
on “under the surface” of price & VIX movement?
And what you’re lookin at above is ACCELERATION in the polynomial curve
… this is the second derivative of the definite integral, the first derivative being
velocity … and where “buy fuel” shows up, even in markets that aren’t moving
much [hello Cable/Yen last week!], is where acceleration quickly changes at the
bottom … note, the moves under the surface aren’t affecting the top green layer
much, and so a casual observer looking only at the green surface says, “not
much going on here is there”? … meanwhile, under the surface there’s quite a
lot going on, and for scalpers, this area is of prime importance!
It should become readily apparent, that the crypto algorithm is a “SPECIALIZED
ALGORITHM” of the above GENERAL case, where the factors above are ignored
cuz VIX is so high, it trumps other variables and renders them moot … NOT SO
IN TRADITIONAL MARKETS! … here, we very much need to get a handle on
ACCELERATION, otherwise we’re stuck at the green surface with nothing cuz the
market can’t extend the range in either direction, and from all outward
appearances it appears nothing is going on … and then BOOM!, it moves out of
nowhere, but that move out of nowhere started with a bottom acceleration that
just kept going!
OK, good enough, are there any indicators that can accurately model
ACCELERATION? … YES there are, but only in an “INDIRECT” way using
“induction” logic and NOT “DEDUCTION” logic … every bit as powerful and
more statistically reliable as well … OK, what are they? … sorry, not gonna
publicly share this cuz it’s for people who have purchased the algorithm. [And
btw, an updated version of the CDSA [Crypto DragonSlayer Algorithm], taking
into account traditional markets like FX, and others, will be available next
weekend … all those who have purchased the CDSA, do nothing cuz it will be
sent automatically to your email address of record when finalized.]
Natch, having finalized the research & development of the GENERAL algorithm
case, starting this week I’ll be using it for the PAMM trading GBPJPY.
Directly below, the table of 20 Day Range MA’s for selected markets … and for
those interested, GBPJPY = 128.0 PIPS.
Onto the week at hand, highlighted by Thursday’s BOE meeting, which is gonna
be interesting to say the least for GBPJPY … with the final piece of the scalping
algorithm finally in place [after so many hours of research you have no idea!], it
should be an eye opening week … outta here … “The future’s so bright I need
sunglasses!! 😎 … Onward & Upward!!
-vegas
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