In yesterday's private chat, Samm gave a very clear description of the meaning of the Therm Trades section, and most importantly, that it was done in a language that everyone could understand. I know that he has already given descriptions of the different sections of the tool, but let me quote it again. It was very helpful for me, maybe it will be useful for someone else...
1. Term Trades (TT) defines space in terms of “volatility deviation” or the side to which volatility is directed. To explain, a positive diagonal for example has a rising slant (going up), but before it turned up it must have been going down.
2. So the TT colour would have been DarkOrchid with the letters “Open,” implying that volatility is driving price down in a cyclic trend. But a) when price turns up and strong enough to suggest at least a pullback, TT colour turns Green with the letters “Closed” implying buy orders have become dominant and the space is “closed” to sell orders.
3. So b) the logic of that is price is rising toward the boundary of the negative volatility envelope or space. If price reaches that current boundary and fails to “breakout” it must remain in negative space and so it turns to return to trend and we see a change from Green “closed” ----> back to DarkOrchid “Open” because we only had a pullback with price rising asymptotically to the edge of negative space without transforming the current space from negative to positive.
4. But on the other hand, in a reversal price must break that bound and where that is the case in this example, we would have price Green “closed” ---------> transformed to Gold “open” implying that price is now in positive space and trending up. So XAUUSD must have been trending up in 7n historically and then turned as if in a Pullback (red) and asymptotically approaching the lower end of its original space and therefore was “closed” to buy orders and sell orders dominate at the time I wrote that Strategy and you will see where I remarked, that at time of observation it was possible that price might breach the low boundary and “Open” negative space on 7n to sustain a cyclic down trend. And that is exactly what has happened in Gold
5. This is why the Spot Trend command is so powerful and certain. Spot Trend = change in TT + change in Cyclicality to the same colour which transforms the space to the colour of the equality. And because markets define iterative spaces (just like in compound interest), in negative space high pivots translate price lower and in positive space low pivots translate price higher and in both cases along the a given diagonal which is why we say price is phase locked to that current diagonal and which is why this setup defines risk-free space since even without a stop loss any entry will persist in one and only one direction.
And one more thing about reversals... I think it's also very valuable. At least I believe that it is necessary to use the tool in this way. Again very affordable...
This is how you read reversals.
1. Cy =TT = diagonal = Cyclic trend.
2. On that command if going up AB is phase locked and if going down BC is phase locked.
3. Risk-Free space = AB if going up and BC if down (in other words all low pivots translate if AB and all high pivots translate to lows if BC.
4. Reversal is the change from BC to AB or vice versa using command 1 here.
5. So very difficult for me to understand since these are true 100/100 times. I do not know this idea of clogging up the space with confluence of so called “support and resistance lines” because logically 1 – 4 simplifies all that and has NEVER failed. I know as a “technical” trader you are used to trading traditional concepts. But that is not what I am promoting. Because this idea of confluence as for me has no basis in reality or fact. You have not seen 1 -4 fail a single time in life and in a million years that is how the market works and I can bet that you can NEVER EVER show a fail case ever. So please I really do not understand and I cannot support what does not make sense at all. I hope you understand.
Hope this information was helpful...
“The Cr