Hi dascore,
You ask:
Could the following be an acceptable interpretation of Hertler's explanation? re: the plotting of the smart money flow and dumb money flow - at any one time eg every 9 bar on a 5 minute chart, you can find out whether the closing price of the period you are charting for is greater or smaller than the "typical" first half hour price, where the average of the high,low and close ( "G" in this case ) is typically defined as G i.e.( H+L+C/3)=G . If it is greater than G, it is construed as positive contribution and it is added to cumulative G as smart money. If it is smaller, it becomes the negative contribution and is subtracted from cumulative G as dumb money.
The answer, quite simply, is "no" - this is not an acceptable interpretation of the Hertler explanation. The Hertler explanation depends entirely on the concept that dumb money dominates in the first half hour, and smart money dominates in the last hour.
Now - that does not negate the possibility that your use of statistics as explained by you is not valid. But that's a galaxy far away from the Hertler explanation.
But I'd like to see a conceptual explanation of why every every 9 bar on a 5 minute chart in between the Hertler time periods (first half hour, last hour) can represent dumbmoney/smartmoney flow.
Empirically you might be able to show it works. But I'd like to see a convincing conceptual framework as to why.
By the way - I enjoy your work. For "entertainment only". (Smiles).
Good luck
Redb
timing by past inferences to present patterns, page-54
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