New Concepts in Drummond Geometry

In recent years we have developed a host of new concepts that we are bringing to the DG trading community at this time.  These include the Drummond Geometry R-Vals,  the concept of "active" placement of indicators, new market metrics derived from the “Pipes” and other new indicators, and details about the DG2 database.
The implications of these developments are that the full range of Drummond Geometry classic and new concept values are now made available in digital form for  plotting on historical charts, for use in RadarScreen, the TradeStation Scanner or other software, or for implementing trading systems with a full range of back-testing and statistical analysis in TradeStation or other platforms.  
This page fleshes out the new concepts.  Further documentation will be available with the DG2 developer's API package.

Relative Values or “R-Vals”  

Relative values chart the relationships between different DG values and structures, and contribute mightily to the unique flexibility and power of this methodology. These relationships can be enormously useful as they release market structure from the need to be expressed in price. The trader can now manipulate expressions of structure and visualize combinations of structural conditions that can be applied across timeframes and different markets.
Price can be thus expressed as a function of structure instead of structure being expressed as a function of price.
By creating expressions that are a function of structure as opposed to price, we have taken the first step towards escaping the “slavery of data” that has captured technical analysis. If one cannot avoid the effect of a bad tick, then the validity of any technical indicator is called into question and the feasibility of trade automation is severely restricted. Learning how to deal with structure as opposed to price is a first step in this direction. Structural elements are not immune from data corruption, but they react more slowly than pure price data and hence are less susceptible to distortion caused by a single bad tick.

Trend
Gives the number of bars in a trend. A negative value indicates a downtrend; a positive value indicated an uptrend.  Zero is congestion.

Cen
Gives the direction of congestion entry +/- 1 and then returns 0 after three closes on one side of the dot. Displays value after close of bar.

Cex 
 Gives the direction of congestion exit (+/- 1) until price leaves the confines of congestion.  Displays value after close of bar.

 Cbar
Gives a count of the number of completed bars in progress that the market is in congestion until price leaves the confines of congestion.  Useful for monitoring the length or  "maturity" of congestions, and thus the "readiness" of congestion to exit into a trend.

Ddir
Dot direction: returns the number of bars in which dots are moving in one direction.  A positive number equals up move, a negative number equals a down move.

RSp
"RSp” = “Resistance and Support Position," a useful technical description developed to give the location of the resistance/support matrix relative to the envelope on any given bar. This gives you information about the matrix in relationship to the envelope.  I.e. in a strong trend up, support will be located at the envelope top, where as in congestion it will be located at the envelope bottom.  Thus for programming purposes one can quickly specify where Resistance actually is or is anticipated to be.  
Scale: discrete values (whole numbers) as follows:   -2 = Support is located below the Envelope Bottom, Resistance is located at the Envelope Bottom (As in a strong trend down)  -1 = Support at Envelope Bottom, Resist at Pldot.  +1 = Support at Pldot, Resist at Envelope Top   +2 = Support at Envelope Top, Resistance is  above the Envelope Top (As in a strong trend up)

 AD
"Accumulation /Distribution."  This is a measure of increasing strength or weakness, based on the position of the close and its distance from the high and low.  
Scale:   ± 1 on a sliding decimal scale; +1 means the high is the same as the close; -1 means the low is the same as the close, 0.0 means the close is equidistant from the high and the low, etc.)

Flow
Flow Up/Down (Scale: a fixed expression  + 1 for up or -1 for down.)   This value will always be either +1 or -1, there is no 0.   This measure of flow is based on a number of DG indicators and is the measure that is reflected in the DG2 Flow indicator.

FloM
A measure of flow based on a pure mathematical formula, that may be preferable to some traders.

FloR
A measure of flow based on bar retracement,  or (Close - Last hit True Hi or Low)/True Range).  Returns a positive or negative 1.

FlowD
This returns the number of bars in a row that manifest flow in a single direction.   It
returns a positive number for the count of up-flow bars, and a negative number for the count of down-flow bars.  E.g.,  If today's live developing bar shows a FlowD value of +7, then the previous seven bars have been in an up-flow state for seven bars in a row.

Dopn
   "Dots opening up." This is a measure of the distance between the PLdot and the live PLdot, normalized as an expression of percentage of envelope.  It returns a sliding scale from -2 to + 2.  ( However this indicator  rarely exceeds ± 1.   A value of 1.0 would mean that the distance between the dots is equivalent to the width of the envelope; 2.0 would be equal to twice the envelope size or greater. )
Dvel
"Dot Velocity" is a measure of the acceleration of a directional move as measured by dots on successive days:  (LPLD-PL)-(PLD-PLD1).

DPsh
"Dot Push" is a measure of how much the dot is moving, or "pushing", away from the Pldot; this is also a simultaneous measure of "Dot Refresh," since the movement toward or away from the dot is the same measurement, and only the name and direction is different.  DPsh comes in several variants: Dot Push measured from the High, the Low, the Close, or a combination of all three.  All four DPsh measurements return a value on a scale of plus or minus 3.  

DPshH
Dot Push High

DpshL
Dot Push Low

DpshC
Dot Push Close

DPshT 
Dot Push Total

TrndP
TrndP is "Trend Push", a very quick-reacting and fast acting trend measurement based on Dot Push.  It returns a plus or minus  1.

Crst
  Crest identifies "Pldot Crests," and is triggered when the two dots to the left of the crest and one dot to the right of the crest are lower than the crest dot.

Valy
Valley is the mirror image of crst, and is the "Pldot Valley", triggered when the left two dots and the right dot are higher than the valley dot.

WID
Wid is "What is the Envelope Direction?" and returns a plus or minus between 1 and 6 as follows:   1 = slight direction, less than 2 = weak direction, greater than 2 up to 6 = strong direction, with larger numbers indicating increasing strength.  Negative numbers indicate a down direction.   A sideways moving market will return a value on a plus or minus scale of 2.

 WIE
"Where is the Envelope versus the Higher Time Period Envelope?"  This measures the location of the envelope against the position of the HTP envelope, and returns a value on a plus or minus scale of 4.   4 = Env is way above HTP Env, 3 = Env Bot between Htp ET and PLD 3 = etc.

WiCev
"Where is the Close in relationship to the Envelope?"  This returns a value of plus or minus  2  where 0 is the PLdot, 1 is the ET, and 2 is way above the ET.   1.5 would be half of the size of the envelope above the ET, etc.  Negative numbers refer to the areas below the PLD.

WiCrs
"Where is the close in relation to the resistance and support matrix.?"  This returns  value of  plus or minus 5  5 = Above FRT 4 = Above FRB etc.

WxH
'Where is the High is relation to the Resistance and Support matrix?"   This returns  value of  plus or minus 5, where 0 is the center between NBR bottom and NBS top. 0 to 1 would be between the center and NBR bottom, 1 to 2 would be between NRB and NRT, etc.

WxL
This returns  This returns  value of  plus or minus 5, the sanme as WxH.

WiT
"What is the Trend Value?,"   A measure of how close the trend is to exiting the top or bottom of the congestion confines at the Dotted Line or Block Level.   in trend = +/- 1 when in cong gives a scale of how close price is to Dlbk Top or DlbkB

WIB
"What is Bias?"   A proposed measure of strength or weakness reporting on scale of  plus or minus; this name is reserved for future use and is not being calculated at this time.

RTzn
 RBzn “Red Top Zone”  and “Red Bottom Zone”   This is a measure of the height or size of the top and bottom red zone of the “Pipes” indicator on each bar.  The value is normalized to a percentage of the envelope.

RTvel RBvel
“Red Top Zone Velocity”  and “Red Bottom Zone Velocity.”  This is a measure of how much or how rapidly the size of the red top and bottom zones change, and is derived from the difference between the live and static red zones.  

RTwal RBwal
“Red Top Wall”  and “Red Bottom Wall”   This is a value that indicates if the top and bottom oncoming marks are “stepping up” (+1) or are “stepping down” (-1) or are showing no change.  This  R-val can reveal a wall in formation as well as a wall that has formed and is progressing.  When the oncoming marks are showing no change they are forming a straight line of a “wall”.  When the value returned is a positive number larger than +1, it designates the number of times that the marks have been the same, thus how many bars of the “wall” have been formed.  The bars that are measured with this R-Val start with the live on-coming mark.

REpos
“Red/Envelope Position”.  This value returns the position of the envelope top and bottom relative tot he red bands.  When the red band is above the EB and ET, it returns a +1 and is a bullish sign.  When the red band is below the ET and EB it returns a -1 and is a bearish sign.  When it returns a 0 the market is in transition, and typically will have the ET and EB on opposite sides of the red band.  

New Concepts Values
The DG2  Database includes values for all of the key lines for the following new software: see the DG2Database documentation for line names.
Zones 1-6
Blues
Refresh Bands
5/9 zones
“Pipes”

The "Active" Switch
Some considerable power from the DG tools comes from the ability to place the indicator forward or back in time from its creation.  Thus the normal PLdot is created from the last three dots and placed on the current bar now developing. This we call the static dot because it does not develop further but holds its place on the price axis.   If we then conceptualize the "live" dot as the dot in development, with two bars past and the current developing bar supplying the raw data from which the dot is created, we can then plot that dot on the future bar, that bar that is not yet formed.  All this so far is meat-and- potatoes fro the Drummond trader and these techniques will be familiar to all who have taken the training.
 But now we have a new wrinkle.  When charting higher time periods, such as the daily on the weekly, we find that the higher time period overlays are used in static mode, and do not change as the week progresses.  And yet the closer we get to the new week, the more valuable the live indicator data becomes.  So we have created the "active" status, as a new time-status designator.  The active status is a combination of the live and static data and we can switched from static to live as the end of the static period comes to a close.   For example:  An "active" designated HTP overlay of Weekly on Daily will draw
from static data on Monday through Friday and switch to live data on Friday.
The active data makes visual monitoring the developing future resistance and support very easy, but more to the point it gives the computer access to this shift in state and makes the concept available in many other situations.  This becomes important in developing set-ups and computerized trading systems, and is thus a valuable enhancement to the database.