(This is Part 11 of a series. Go back to Part 10.)
One objection that could be raised immediately to what might be called this aesthetic method of selecting the appropriate timeframe for the STX is this: “Gee, this looks great in retrospect, but how do we know in the beginning or the middle of a trade which timeframe to use?”
The answer to that question may sound a little strange, but it’s accurate. You just do. The trader/investor will find, after some practice with his or her aesthetic or intuitive sense—which no computer can duplicate at the present time—that the appropriate timeframe (or timeframes) in which to use the STX will become more and more obvious.
That has been my experience after some time, and I now find the STX, in combination with other Ocean tools, to be completely indispensable.
When studying the STX in relation to any given market, the trader will become aware that that particular market and the STX have a certain harmony on certain timeframes—but not on others—at that moment in time.
This being so, after awhile you will know instinctively which STX timeframe to use when a move begins, even if the move has begun only a fairly short time ago.
Remember our rule that in setting the intial stop in a trade that one uses the Ocean Standard techniques so eloquently set out by Pat in numerous lectures on the subject. Only when the market has definitively cleared the STX should one begin to then use the STX—in the proper timeframe—as the stop.
Of course, I am not even going into the discussion here of using the Ocean BTX trend indicator and the other Ocean tools as aids in determining the start and continuation of a meaningful trend and where the most relevant timeframes will be in attempting to profit from that trend.
However, I do suggest carefully studying the accompanying documentation on the BTX as you will find after awhile that you have an intuitive understanding of how the BTX works hand-in-glove with the STX in determining the appropriate timeframes as well as other matters.
It will be at least 10 years, and perhaps as many as 20 years, before computers can begin to approach the human brain in its use of aesthetic and intuitive considerations as a function of intelligence. This is a great advantage over rule-based systems—a vital advantage that you can and should use and that Ocean attempts to facilitate for you.
(This is the end of Part 11. Go to Part 12.)
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