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The Future of Day Trading L1: Trend Architecture

Jul 4, 2024

The Future of Day Trading Remastered for 2022

Introduction

  • Discussing Trend Architecture and Array in day trading
  • Topics Covered:
    • Creating trend architecture
    • Origin points and existence
    • Utilization
    • Chart requirements

Trend Basics

Accumulation and Distribution Candles

  • Rule: Use wicks (not bodies) of candles for trends
    • Accumulation to Accumulation on top
    • Distribution to Distribution on bottom
  • Example with different chart colors (blue & beige vs. red & green)
  • Accuracy dependent on following correct points

Building Trend Architecture

First Steps

  • Base Point: First trend point
  • Reach Point: Second trend point
  • Attach accumulation to accumulation (top)
  • Attach distribution to distribution (bottom)

Practical Example

  • Use replayer tool to set accurate points
  • Effect of Time: Only use accumulation to accumulation pre-existing candles

Advanced Concepts

Hard Closes (Future Lessons)

  • Trends will adapt to hard closes in future lessons
  • Hard close concept explained briefly

Highest Time Frame Analysis

  • Start with highest time frame and work down
  • Example: Daily time frame, then zoom out
  • Laws of Charting: Cannot use invalid candles

Creating Trend Accuracy

Points Mapping

  • Attach accumulation candles for accuracy
  • Adapting reach points with new candles
  • Chain Lightning Effect: Larger trends break into smaller trends

Trend Hierarchies

  • Three Layers: Legacy, Global, Local
  • Larger the trend, larger the move
  • Accurate trend tracking over time

Detailed Trend Analysis

Replay and Real-Time Adjustments

  • Using replay tool for historical accuracy
  • Forward prediction using trends
  • Effect of Time: De-Cycling/Recycling information
  • Always move from higher time frame down

Practical Trend Adjustments

  • Marking trends on daily and adjusting with four-hour chart
  • Mark legacy, global, and local trends
  • Follow progression of trends breaking and moving

Advanced Trend Architecture

Nested Trends

  • Range Within Range: Large trends control smaller trends
  • Hierarchy Creation: Legacy to global to local across different ranges
  • Use time frames to find points and track accuracy

Real-World Usage

  • Example of pinpoint accuracy via correct trend marking
  • De-Cycling Rule: Information cycles down, not up
  • Effective use of replay tool for pinpoint trend accuracy

Conclusion and Future Lessons

Summarized Key Takeaways

  • Rule: Accumulation to accumulation on top, distribution to distribution on bottom
  • De-Cycling Information: Movement down time frames enhances accuracy
  • Hierarchy of Trends: Legacy, Global, and Local
  • Future Topics: Hard closes, cycles, more advanced rule application

Preparing for Next Lessons

  • Next topic: Temporal De-Cycling in both horizontal and vertical axis
  • Further development in trend understanding and chart marking accuracy

Summary

  • Emphasized rule: Always move from larger to smaller time frames in trend analysis