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principle sequence analyzing an edge

Remember the principle sequence from our last post, analyzing an edge on the weekly chart?


1.find a time frame specific abnormality/edge


2.extract underlying principle


3.zoom in for possible stackable further edges


4.zoom out one time frame higher to relate to larger more dominate players the actual picture for possible further leveraged edge


5.zoom into smaller time frame for possible lower risk entry spots to minimize risk as entry tool


Lets us examine a time cycle edge on the weekly time frame for bitcoin:



the chart illustrates that a certain time sequence, red half circles on the top of the chart, exploits with stunning accuracy price move highs and lows throughout time


When events are about to be happening is a fact much more desired from a low risk edge perspective versus at what price. After all exposed capital is risk capital for one and tied up capital at the other.


Why is it that the average trader is carrying in his or her toolbox almost entirely simple math edges to tackle the markets challenges.


The answer is hat these easy to understand edges are soothing to the ego which can't fathom the challenges of a vastly expanding market with lots of moving parts.


Yet you can't bring a knife to a gun fight.


Not only are most using the same tools and as such edges disappear naturally, but why try to use a static solution like insisting price should be stopping at a line in the sand (support/resistance trading) while we are facing uncertainties of the future, a time problem where it would be natural to bring time edges soothing pains of uncertainties related to time.


Rest assured that your efforts extracting edges by looking prismatically through time at the market is the most fruitful venture to stumble upon true high percentage edges useful to stack the game in your favor.



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