There are several advantages of using graphs "tic-tac-toe" in comparison with the more traditional bar or candle charts. The schedule "tic-tac-toe" automatically:
Eliminates minor price movements that often make traditional graphics "noisy".
Removes the often misleading, the effects of time of the analysis process.
Make certain levels of support / resistance is much easier.
Does the definition of trend line is very simple.
Helps you stay focused on important long-term price movements.
After a brief discussion of the history of the schedule "tic-tac-toe, we'll talk about how to build the schedule" tic-tac-toe "manually, and then discuss how to interpret the most common graphical models.
History
Analysis of the schedule "tic-tac-toe" was very popular a long time. This is partly explained by the fact that traders have been very easy to analyze a large number of graphs "tic-tac-toe" at a time when there was no computers. Less than an hour, using only pencil, paper and graph paper, image analysts (or even called a "chartist") have the ability to update and analyze 50 or more schedules every day. When the computers, the formation of bar charts and graphs much easier "tic-tac-toe" began to lose its popularity. Recently, however, due to the fact that traders are looking for a more efficient market-based instruments, the schedule "tic-tac-toe was" open again ", and his popularity began to grow.
This classic method of using paper and pencil, no longer apply to a large extent due to the development of technologies that have made charting easier and faster to update. Now, some graphics program to re-impose schedules "tic-tac-toe," adding with a dynamic interface that allows you to control variables.
Principles of the schedule "tic-tac-toe"
On schedule "tic-tac-toe" price movements merged or increasing the column "X" or downward in the column "A". If you are familiar with the standard graphical analysis, you can consider each column as the display of an ascending or descending trend. Each icon is "X" or "O" is the so-called "cell in the chart. Each schedule has a parameter called "scale of the cell, which is the amount by which market-based instruments to move above the top of this column" X "(or below the reason the current column" On ") before the next sign" X "(or" O ") is added to this column. Each schedule has a second option, called the "spread value" which determines the amount by which market-based instruments to move in the opposite direction (down if we are in a rising column of "X", up to column "A") before going on a turn . Whenever this threshold is crossed for a turn, a new column starts right next to the previous one, but it moves in the opposite direction.
This sounds more complicated than it really is!
While market-based instruments are in an upward trend and does not move down more than the "distance to turn" (ie, the scale of the cell "multiplied by" the amount of turn "), the schedule" tic-tac-toe "column shows the growing" X ". Similarly, market-based instruments, located in the descending trend downward force appear column "O". Only when market-based instruments to change the direction of greater distance than by turning to the schedule will add a new column.
Usually, the scale of the cell "is set to 1, and the magnitude of turn" - 3.
Construction of the schedule "tic-tac-toe" manually
The best way to really understand the schedule "tic-tac-toe" - is built, at least one hand. All you need - a grid (graph paper is best), pencil and quotes. There are only maximum and minimum prices - opening and closing are ignored. Here are some data that will be used for this example:
Key points of building the schedule "tic-tac-toe":1. Remember that "X" represents the rising prices (or demand). "O" represents the decreasing prices (or offer).
2. You can only have a sign "X" or "O" in any one column, but not both.
3. The distance is equal to the turn of the scale of the cell (in this case, 1) multiplied by the "value of turn (in this case 3). Therefore, for this example, the distance is equal to a turn three.
Day 1: Maximum - 15, at least - 11
To start building on the graph the difference between the maximum and minimum of the first day. As prices fall, then start with the heading "About."
15 O
14 O
13 O
12 O
11 O
10
Day 2: Maximum - 12, at least - 11
Now you need to check the two options. First, if the minimum down below, at least, the size of a cell (in this case, one), we note another sign "O" in the same column. Since this has not happened in the 2-day, look, whether higher maximum than the current base of the column plus the distance to turn (11 +3 = 14). It also did not happen. Thus, the 2 nd day, we did not do (!).
15 O
14 O
13 O
12 O
11 O
10
Please note: "Do nothing" is perfectly acceptable (and normal), the schedule for the "tic-tac-toe."
Day 3: Maximum - 12, at least - 10
Again, we look, whether at least reduced, at least at the "scale of the cell." It happens. Therefore, we add a column to another icon, "O". (If the minimum has shifted down to two points, then pointed to two icon "About").
15 O
14 O
13 O
12 O
11 O
10 O
Day 4: Maximum - 15, at least - 11
Because we are still in the column "O", we first check for the minimum. Movement below the previous minimum was not, so we do not add another icon, "O". Then we look, whether it was above or equal to the maximum value of column bases, plus the distance to turn (ie, 10 +3 = 13). Since the maximum was 15, it means that the schedule has made a turn and we add the five symbols "X", starting at a wage above the previous column.
15 O X
14 O X
13 O X
12 O X
11 O X
10 O
Day 5: Maximum - 15, at least - 12
Now we are in the column "X", so first we check the maximum. Movement above the previous peak was not, so we'll continue to check at least. So at least moved down to the threshold of turn (ie, peak column minus the distance of turn (15-3 = 12)), we deployed again and add the three icons on to the next column.
15 O X
14 O X O
13 O X O
12 O X O
11 O X
10 O
Over time, our schedule would look like this:
20
19
18 X X
17 X X O X O
16 X O X O X O
15 O X X O X O X O X
14 O X O X O O X O X O X
13 O X O X O O X O X O
12 O X O O X O X O
11 O X O O O
10 O
It is important to remember that the schedule "tic-tac-toe" does not show the time-line method. Each column can represent one or several days depending on the price movement. Since the schedule "tic-tac-toe" filters "market noise" associated with traditional graphic methods, each point on the schedule "tic-tac-toe" is substantial.
Simple graphical models
The most basic to the definition are as follows:
Levels of support
Levels of resistance
Rising trend line
Top-down trend line
Due to the nature of the schedule "tic-tac-toe", the levels of support and resistance are always horizontal lines and trend lines are always placed at an angle of 45 °.
Levels of support
Levels of support indicates the price at which the majority of traders believe that prices will go up. There is sufficient demand for market-based instruments to stop the descending trend and expand the trend upwards. You can define levels of support for the graphics "tic-tac-toe, looking for a horizontal series of" O ", each of which notes the authority appropriate column.
20
19
18 X X
17 X X O X O
16 X O X O X O
15 O X X O X O X O X
14 O X O X O O X O X O
13 O X O X O O X O X O
12 O X O O X O X O
11 O X O O O
10 O + + + + + Urovenpodderzhki
When the level of support to overcome (the price drops below the level of support), it often becomes a resistance level, because traders want to limit their losses and sell later when prices are approaching the same level.
Levels of resistance
Similar levels of support, resistance levels are horizontal lines on the graphs "tic-tac-toe." They note the top level of trade, or the price at which sellers are usually outweigh buyers. Look for the horizontal rows of "X" to determine the levels of resistance.
20
19 + + + Level of resistance
18 X X
17 X X O X O
16 X O X O X O
15 O X X O X O X O X
14 O X O X O O X O X O
13 O X O X O O X O X O
12 O X O O X O X O
11 O X O O O
10 O
When resistance levels breached, the price moves above the level of resistance, and often makes a significant movement.
Rising trend line
To note the upward trend line, as well, and the level of support, first check the sign "+" first column "O".
20
19
18 X X
17 X X O X O
16 X O X O X O
15 O X X O X O X O X
14 O X O X O O X O X O X
13 O X O X O O X O X O
12 O X O O X O X O
11 O X O O O
10 O
+
Then move one cell to the right and up and put another sign "+". Repeat this until the reach the other column "O", accompanied by a column of "X", which does not continue to model.
20
19
18 X X
17 X X O X O
16 X O X O X O
15 O X X O X O X O X
14 O X O X O + O X O X O X
13 O X O X + O O X O X O
12 O X O + O X O X O
11 O X + O O O
10 O +
+ Rising trend line
Rising trend line indicates the point at which buyers are beginning to surpass the sellers.
Top-down trend line
Now our market-based instruments was developed. Let descending trend line. We start with the column "X" and use the same technique of construction is as before, but with a top-down angle. Remember trend line is always placed at an angle of 45 °.
20
19 +
18 XX + descending trend line
17 X X O X O +
16 X O X O X O +
15 O X X O X O X O X +
14 O X O X O O X O X O +
13 O X O X O O X O X O
12 O X O O X O X O
11 O X O O O
10 O
Confirmation
As the level of support or resistance level should be confirmed by volume. If the volume is increased after the break, the majority of traders and investors agree to a new direction.
Graphs "tic-tac-toe" in graphics programs
Some graphics programs provide three different versions of the schedule "tic-tac-toe": graphic, text, and dynamic. Graphic version looks best and is recommended for practical use. A text version is more traditional and works well in the case of the slow work of the Internet. Finally, the dynamic version of the schedule "tic-tac-toe" allows you to interactively determine the date of the beginning and end of the period and see how the schedule "tic-tac-toe" develops over time.
All versions of the schedule "tic-tac-toe" allows to choose the traditional, interest or a user of the scale of the cell.
The traditional scale of the cell loads scale cells, historically used for the specific price range. The size of the turn starts at 2, but can be automatically adjusted. The following are the traditional scale of the cells used in these charts:
Interest scale cells increases the scale of the cell at a constant percentage (1%) each time the price rising above the current cell.User-defined scale of the cell allows you to manage and scale of the cell and the value of a turn, creating any filters to the input data. In this case, the user must independently find balansmezhdu sufficient detail and weeding unnecessary "market noise". Experimenting with these three ways you can see how variables affect the type of schedule.
Remember, the schedule "tic-tac-toe" does not show the time line, so that the interval between months, for example, will not be the same from month to month. Numbers and letters in the graph indicate when a new month. For example, the number "2" shows where the beginning of February.
If you want to know more about using graphics "tic-tac-toe, we recommend that you book by Thomas J. Dorsi" charting "tic-tac-toe."
Forex Magazine
based on stockcharts.com
based on stockcharts.com
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