indexdollar: Re: [OpenFX] Patterns

Senin, 07 Januari 2008

Re: [OpenFX] Patterns

Thanks Chin,

I do not see your chart as it did not appear on the email. I would assume you are looking at the daily chart?

Peter

NobleTrader trader <nobletrader@gmail.com> wrote:

Great Post, Peter:

I see that you are looking at Point D on the GBPJPY.

I have something equally interesting on the EURUSD. But, instead of looking at point D being formed, I am looking at the possible end of C on the EURUSD.

I am looking at the active phase of a Gartley possibly starting.

The Active Phase, for those who may not know the term, is the arm from C to D. In other words, D has not been made, yet. Instead I am talking about Price heading from C down to point D..

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On top of all this, I also see timing. I have included a picture to illustrate the timing:

On this picture, there is actually a Time/Price square. . . This is a special relatiionship between the time axis and the price axis.

If the fib Time/Price Square holds up, then, price may head south and hit the cluster of fib support at around 1.4160.

cheers.

chin.

cheers.

On Jan 4, 2008 10:58 PM, Peter McIntyre <mcpetetrader@yahoo.com> wrote:

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> I reponse to a question i have put the following information together...

>

> So, the ab=cd is the basis of most if not all patterns. Lets exclude some of

> the classic patterns like wedges etc. So for the trader with a keen eye we

> are able to pick up ab=cd patterns on just about any chart. We also know

> that the ab=cd pattern is the back bone of the Butterfly, gartley etc...

> Now lets assume we have an x to a donw that then moves into a b through

> rising price. The ab is set. Now we watch price fall to a (simple) higher

> low than the previous a. Now we have the ab=c.

> The part of the ab=cd leg I like to play is the cd leg. Through experience I

> have learned that there are two really safe entries into a cd leg. One is

> off divergence and the other is above the area of stochastic consolidation

> that incorporates the a to b to c and then to the high of b. This area

> without divergence should be approached with entries above this channel

> area.

> Now we are into a trade on the cd leg and we are asking how high will price

> rise?

> The biggest variable is the time frame one is trading. The larger the chart

> the longer the potential distance. The larger the chart the more the pull

> back.

> Now we have figured out when and where to get in but how do we know the

> direction of the trand is valid. Better figure that one out before you

> start. Entering with the trend- price allways moves futher and the pull

> backs are usually less substantial.

> So here is the setup. lets say I am clued into the bc leg of a daily chart

> and the move is long. This is my Global Positioning System <GP(S)> I.e. this

> gives me direction on the big chart. Now knowing how to cycle into a trade

> with momentum (indicator of your choice- mine is a 10 3 3 stochastic) we

> identify the setup as a ab=c and enter based on the criteria above. This is

> very effective for this trader on a 3 minute chart as mutltipe entries are

> placed(my cluste.) Although there are multiple entries during the cd rise

> (the cluster of trades) the trade is treated as a single trade. As you can

> imagine when you see an exit signal all trade should be removed

> simultaneously. Even if you are late and the last one or two entries go

> against you your cluster should be QUITE positve.

> So this takes some sophistication to implement and manage a trade as such

> but in reality the whole method is straht forwrd. (ie study)

> The following charts were traded this week. The first chart is a 3 minute

> projection chart, the second is the same chart that meets the projection.

> The 3rd chart was traded off specific signals as taught by Derrik S. Hobbs

> in his book, Fibonacci for the Active Trader (Cw 2004)(ISBN 0-9755513-2-9)

> chapter 9, The Shark Attack. The chart explanation is found on the chart.

>

> Have a great weekend!

>

> Peter

>

> ________________________________

> Never miss a thing. Make Yahoo your homepage.

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Pip Whisperer, The NobleTrader.