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The Future of Day Trading L1: Trend Architecture
Jul 4, 2024
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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
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