Delta theory states that cycles of repetition repeat forever forward and backward in time.
They occur on many simultaneous and overlapping time frames.
How to identify a delta pattern.
take several charts of any time frame, that does not matter if its 15 min, days, weeks, months or years.
you may find it helpful to apply a standard deviation tool
(linear regression, bollinger band, keltner channel etc.)
line up the charts one above another
mark all the significant high and low points
then line up the charts so that the identified points form lines .
count the duration between repetitions.
if you have identified a true pattern, it will apply forever.
size and distance of a pattern will always change but it should always be discernable on the chart.
aides in identification:
the dominant trend will display 2 significant points for every significant contratrend point.
"V" the high may occur at the first or 2nd part of the "V"
inverted "V' for downtrends
the cycles of different time frames will overlap at major turning points.
A "V" point for the 15 min chart will match up with a daily or weekly chart.
If that happens to also line up with a fibonacci retracement
chances are fairly good, that it will hold as a valid point.
There is a lot of good stuff in the book.
The entry and exit strategies in the book are profitable just by themselves.
imo it is one of the most significant trading related books that i have read.
The Delta Phenomenon, by Welles Wilder
geocities.com
c ya, tootles, astalavista |
