There seems to be an endless amount of strategies out there, some promise fast returns while others promise consistency. Recently Ive started to gain some followers and have had some requests for strategies. Well today Im going to share one of my crackpot strategies I call "The Crystal Ball Strategy". This is not like most strategies that rely on indicators, in fact it uses no indicators at all. I don't often trade this one but every now and then I will use it to confirm a trade before placing an order. I stumbled upon to this while I living in the 1 second charts trying to script the perfect entry bot. I started to notice the loops would start on the 1 second chart then make there way to the 30 second, then the 1 min. The next day I would see the pattern on the 1 hour chart. Its like looking into a crystal ball and seeing the future.
How it works. Its as simple as opening a split screen with a 1 min char and a 60 min chart. On the 1 min chart find the beginning of the current trend that you are looking at on the 1 hour chart. For the example I am using Bitcoin. Now its just a matter of comparing the two charts. If they are the same (which they normally are) you can setup your trade knowing if it is going to be a long or short and even how good it will be and where to exit. All the data for the 1 hour trend is stored in the first wave. Just a word of warning that things happen along the way like dumps that will change the future but if things coast along fine the 1 hour chart will usually match up with what you saw on the 1 min chart yesterday. Here you can see the 2 charts lined up. The 1 min chart is marked in a yellow box on the 1 hour chart. I have broken up the different parts for comparison. In this example the charts suggest to place a short. This is scrolled back left, you can see the 2 charts match characteristics.
Im sharing this for educational purposes only and have not backtested it enough. I just figure some people may be interested and strongly urge you to not run out and put on a "YOLO".
Thank you for sharing. It's not crazy at all, it's just how fractality works, and it's established price charts are fractals. With this post, you essentially teach how to manually trade based on fractals, and I like this idea very much, as usually fractals are only detected through algorithms and hence kind of look like black boxes, but here you make them appear very intuitively to the trader, that's awesome! From the little I know of fractals however the issue is that it's very noisy/random, so although yes patterns can look similar at different time resolutions, it won't always look similar, and potentially only rarely. Maybe there are some conditions we can identify that increase the likelihood of a pattern repeating across timescales in a fractal way?
matcastro114
⋅
How can I get this indicator?
veryfid
⋅
@matcastro114, Hi its not an indicator. Its a split screen with 2 different timeframes.
khuio
⋅
Thanks for sharing this! It's fascinating indeed :) I've found a pattern as well, but I wonder if we're just conditioned to find similarities and it might just be an overinterpretation of the data. There's so much data and potential patterns on the 1min chart and in the end it might just be a random effect of patterns correlating.. I don't know, but it's really interesting nevertheless!
veryfid
⋅
@khuio, Hi, you have a good point. After looking at something long enough you start to see what you want to see. Since making this article I have been continually checking BTC and it has not been wrong yet. Having said that I would not enter a trade just based on this analysis.
igenena
⋅
Is this setup correct? Do I leave extended hours in both 1 m and 1h charts? its a bit easier in crypto where the market is on 24hrs, but if my setup is correct, so the assumption is that AMZN tomorrow will boom all the way till end of Friday (assuming no external factors for sure)?? thanks for your work buddy, it helps a lot!!