Kolachi Method 2 of Trading

[kolachi]

[kolachi]

Down is the 1h chart of euro which shows medain lines of 72,116.5 and 188.5.You can see how well they contain the price reversal and slope of wma5.

kolachi

[kolachi]

Entry in Kolachi Method 2

Plz see the 1H chart of Eurodollar below.

You can see that wma5 breached the first meadian line while price touched the second median line.As soon as wma5 shows signs of slope change we can place entry.

Smart traders can place entry well above as top red candle has long wick and small body which shows price was unstable up and has been rejected from up.But entry on pressumption is never safe.

Kolachi Methods always emphasize entry after the slope change of wma5.

kolachi

N.B. Please note that Kolachi Method 2 is copyrigheted (2006) under law.

[fxcruiser]

hmmmmmm! the Kolachi Traders move to TSD. very interesting. Anyhow, welcome. I hope you find this a friendlier environment.

ENJOY!

fxcruiser

[kolachi]

Rule#8 of Koalchi Method 2

Rule#8 In trending market as soon as wma5 is repulsed by higher emas, place entry and exit as per method.

Explanation:

What does we mean exit as per method.

See the chart below of Eur/Jpy which is highly trending pair.

We can see that after touching axis at around 148.20 it went up and wma changed slope after repulsion at 148.35 and price shooted to second median line.

Entry was at repulsion of axis and exit is at change of slope beyond medain, that is at 149.60.

Again we see that at per rules of Kolachi Method 2, here lies another entry for pull back too.So enter and and exit as per your wish and psychology at ema100 or ema200.

Process continues till you are tired.

kolachi

[kolachi]

fxcruiser,

Thanks for the welcome.I hope we will have friendly and cooperative environment here.The reason for the move is that FF has deleted all three threads of Kolachi Methods which were available to traders for free of any cost.They had banned me under the allegation of spamming but i dont object that.However, destroying any free and valuable material because it contains name of Kolachi is not fair.

kind regards,

kolachi

fxcruiser:
hmmmmmm! the Kolachi Traders move to TSD. very interesting. Anyhow, welcome. I hope you find this a friendlier environment.

ENJOY!

fxcruiser

[kolachi]

[kolachi]

Example of Koalchi Dispersion

Here find another example of Kolachi Dispersion.

Gradually I will teach what is its best use but first you should try to familiarize yourself with it.

kolachi

[kolachi]

Focal Point of Koalchi Dispersion (c)

In Kolachi Dispersion, the focal point is is an imaginary point which is seldom present in its ideal position.Usually it is in the form of strectched focal point.The formation of focal point starts when wma5 ripps the ema21 and ends when it breaches axis.

In ideal focal point you will see wm5 breaching all emas in the proximity of an imaginary point, while in stretched focal point you can see that it takes little time to complete it.

The entry of Kolachi Methods( Kolachi Method 1 and 2 are collectively called Kolachi Methods) is preferabbly at change of slope of wma5.

But we know sometimes it is not possible to place entry at change of slope as no one is sitting infront of charts all the time.The entry at focal pint is for those who just entered the market when focal point is in formation stage.

Those who entered earlier at change of slope can relax when they see the focal point because they know a big move is under way and they just need to keep riding on it.

kolachi

[kolachi]

Kolachi Methods and Guppy

Question:Kolachi, isn't your "dispersion point" most likely to be a news event, thereby suffering from the same trading problems inherent in any major news event (ie. slippage). Divergance of MAs is well recognised, for example in Guppy's.

Infact, Kolachi Methodis designed to focuss on effects rather than on causes.I am not concerned what caused the market to behave like this.I am concerned with grabbing few pips from moving market.

Definitely news may be the cause of it, but Kolachi Methodin interested in tapping this opportunity.

Regarding your question about slippage, I would say that it might affect the trades, but Kolachi trader will either place trade when wma5 turned slope so it wont affect him much as market will move enough pips for him to lock some profit.

If a Kolachi Trader places a deal after focal point is emerging or has emerged then he will save enough pips by following rules of Kolachi Methods for exit.

Problem is with a news trader who has no system and is shooting blindly in the hysteric market.

Lastly,I would compare Kolachi Method with Guppys by an example.

I have Honda Accord and my friend has Toyota Land cruiser.Both have four tyres.Both have one steering wheel and both run on the same roads.But still there is a huge difference between them if one understands.

Similarly, Guppys uses emas and Kolachi Methods also use emas.Both are for Trading on charts.But there is a great difference in analysis, entry, exit, and the periods of emas used.

I hope it answers your queries.

Thanks for your interest in Kolachi Methods.

kolachi

[kolachi]

Benefits of Kolachi Dispersion

Please remember Kolachi Dispersionis dispersion of wma5,ema21,ema55,ema100, and ema200.It is quite different from Daryl guppy work.

What is use of recognizing the Kolachi Dispersion?

Yes it has a great use for a trader who is in the trade and has to decide to exit from it.

I earlier told that entry saves your capital and exit makes you rich.

Kolachi Dispersiontells us a lot about the exit.Please see chart below where a strong move makes almost good focal point.We can see that if we recognize it then we will not make a mistake of playing against it but rather place entry as soon as possible in the direction of dispersion and ride for 200-300 pips.

kolachi