Market Manifesto

In recent years we have been mess­ing around with some new con­cepts that we made avail­able to the trad­ing com­mu­ni­ty not so long ago. These include the R‑Vals, the con­cept of “active” place­ment of indi­ca­tors, new mar­ket met­rics derived from the “Pipes” and oth­er new indi­ca­tors, and some oth­er tools derived from the mas­sive data­base “engine” we built.

In dong this we have made the full range of Drum­mond Geom­e­try clas­sic and new con­cept val­ues avail­able for use in trad­ing sys­tems or research projects in TradeSta­tion or oth­er plat­forms.

Rel­a­tive val­ues chart the rela­tion­ships between price val­ues and mar­ket struc­ture, and con­tribute might­i­ly to the unique flex­i­bil­i­ty and pow­er of this method­ol­o­gy. These rela­tion­ships are very help­ful because they release mar­ket struc­ture from the need to be expressed in price. The trad­er or ana­lyst can now manip­u­late expres­sions of struc­ture and visu­al­ize var­i­ous struc­tur­al con­di­tions that can be applied across dif­fer­ent time-frames and dif­fer­ent mar­kets.

Price can be thus expressed as a func­tion of struc­ture instead of struc­ture being expressed as a func­tion of price.
By cre­at­ing expres­sions that are a func­tion of struc­ture as opposed to price, we have tak­en the first step towards escap­ing the “slavery of data” that has cap­tured tech­ni­cal analy­sis. If one can­not avoid the effect of a bad tick, then the valid­i­ty of any tech­ni­cal indi­ca­tor is called into ques­tion and the fea­si­bil­i­ty of trade automa­tion is severe­ly restrict­ed. Learn­ing how to deal with struc­ture as opposed to price is a first step in this direc­tion. Struc­tur­al ele­ments are not immune from data cor­rup­tion, but they react more slow­ly than pure price data and hence are less sus­cep­ti­ble to dis­tor­tion caused by a sin­gle bad tick.

And here’s a thought: what if the low­est-time-peri­od fluc­tu­a­tion is noth­ing more than a spe­cial vari­ant of bad tick?