A-B-C-D Trade - page 237
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The last plot was between 2 Moon lines that are 45-degrees apart. Here's a plot at a 90-degree separation,at the Moon 315 pulling down to the Moon 225.
We can see the 3 peaks that surfaced above the Moon 225. We mentioned the 06:00 top (middle peak) being a 127.2 extension. It is also at the -25 fib channel level.
This means that it triggered a Shaker OS SELL entry. The conservative exit is +31.4. Gross gain = 60 pips, risk = 20 pips at the -40 level.
After deduction for spread and slippage, it indeed was a minimum 3:1 R/R ratio.
The 2 dips at 11:00 and 03:00 were at the FC 61.8. Next plot horizontal plot (not shown) using Low = 1.38701 High = 1.40803.
The 2 dips were at the 50% and 38.2% retrace levels. The 12:00 candle probed to the 50%, as a courtesy touch.
Attached is EUR/USD 1-hour PSQ9. We drew a yellow trend line on last week's Moon 0-degree.
Breakout to upside during 08:00 period had entry 1.3744 and exit at Mars 270 price 1.3808, for net +64 pips.
Here's 15-min with session colors view. If trading the breakout of Asian High 1.3668.
Yesterday's High = 1.3701
Fib Plot Asian Low to High. Price closed at the 261.2% extension during 10:00 candle and now retracing.
Gain from Asian High = +139 pips
Gain from Yesterday's High = +106 pips
Link to Bloomberg article entitled "Wall Street Sees No Exit From Financial Woes".
Obviously, more lagging assessments from financial industry. They even interviewed a former Goldman Sachs Risk Manager who left in 2009. Wonder why? Guess he did a great job forecasting the 2008 collapse.
Some of these comments would be hysterically comical, if they weren't sadly true or outrageously "woe is me".
Another former Goldman CEO said Wall Street is being excessively blamed, Hmmm....guess he disregards Goldman's USD 500M settlement with the S.E.C., and ongoing fraud investigation by the Justice Dept.
One banker said he is hated by everyone, and his friends bought land in New Zealand and wants him to move there. Unfortunately, New Zealand has an anti-crook immigration law. He'll have to find exile somewhere else, such as a Banana Republic.
Wall Street Sees
Update from our Oct 5th post. Point D bottom was Oct 4th.
We had aligned the fib channel slope to the trend lines generated by the ZUP indicator, at lows of Swings X and B. We then pulled plot to Point D, but pointed plot upwards.
A useful aspect of the ZUP is the fib measurements while price is moving. This morning's high is the 88.6% of C-D.
If price approaches point C high of 1220, watch for lurking bounce trade orders.
Attached is a continuance of a EUR/USD chart we've been monitoring.
The AstroIndicator4 (A4) is applied to the daily chart (the only interval that's optimal) at 2 different setting.
We also inserted the indicators MurreyMath1.0 (MML), and RSI set to period = 4: RSI(4).
The data window on the left will have the A4 readings for each setting. The 1st setting uses a natal date of 01.01.1999 and the 2nd setting uses default.
Remember that the A4 is plotted in advance, into the future. It is a type of cycle tool.
We marked turns that had the highest and lowest A4 readings that also registered a RSI(4) in overbought/oversold territory of 80/20.
Your MT4 platform might differ in RSI(4), so you need to make adjustments that you're comfortable with.
The yellow box arrows are turns that meet criteria with A4 set to 01.01.1999 natal date. Blue box arrows based on A4 default.
Many of these signals occurred with candles at or very near a MML line after the day closed. Therefore you might devise a rule that enters at the open of the next candle, and/or be guided by exact MML S&R.
Signal dates are June 3, June 16, June 24 (default), June 30, July 21 (default), Sept 6, Oct 3.
Note: moving 1st date of SDC plot to May 4th produces interesting results. In this scenario, the mean (mid-channel) would be significant.
Post from Oct 11th points to using the May 4th high for the SDC. Price did indeed pause at the mid-channel mean, per attached.
Some more OS examples:
GBP/USD Oct 12th Moon 180/270 plot upward. The 00:00 candle dipped to -25 for entry. S/L 20 pips.
Huge move up early European. Hit conservative exit at +31.4 during 07:00 for +65 net pips.
NAS100 Oct 12th Moon 225/135 plot downward. 14:00 peak at -25 for entry. The -40 S/L was 7 points. The TP +31.4 hit during 19:00 for +26 points.
EUR/CHF Oct 11th Moon 45/0 plot, with 11:00 hit -31.4, but -25 is SELL entry. S/L at -40 = 11 pips risk including spread. 30 gross pips at TP +31.4 level during same hour. Net R/R = 2.2:1
"If price approaches point C high of 1220, watch for lurking bounce trade orders."
That was an easy call and seemingly the entire market shorted there. Attached is SPX500 4-hour with SDC plot high/high: Sept 27th 16:00 and Oct 7th 12:00.
Aligned fib channel to lower and upper SDC channel lines, pointing upward. The FC 138.2 extension intersected the neighborhood of the 1220 level (yellow) that was eyed for the SELL. You want to plot clusters of S&R.
The 2nd chart is a split-screen with a 30-min chart on the left. It shows horizontal retrace fib plot. Low = 1185 High = 1220.
Price bounced down to the 50% level, where the Moon 225 resides.
This kind of trade is also for the very selective trader. However, that requires a lot of patience too.
Although this example is on a CFD, which is not available to American traders, it can be used as a guide for trading ES or other related indices.
For the Shaker OS trade, we provided the cross point (intersection) for Moon and Mars as a designated trade point. We believe, through our research, that a very high percentage of turns occur there.
This does not preclude using the fundamentals for different entry points.
The attached is EUR/USD 1-hour with PSQ9. We marked 2 instances where price dipped below a Moon line.
1) Oct 11th 06:00
Plot Moon 180/270. The 06:00 low touched the -25 entry point. The 07:00 high hit the TP +31.4% level. This was +55 net pips. S/L = 25 net pips. R/R = 2.2:1
2) Oct 11th 12:00
BUY at -25 level = +56 net pips to the +31.4 % level during 14:00 period. Risk = 23 net pips. R/R = 2.4:1
These were 2 very quick trades. After accounting for slippage, they were still R/R of 2:1 in all probability.
If you want to apply a filter, the RSI(4) can be used. In that scenario, only the 2nd signal qualified, as marked by the vertical line at oversold.
The 2nd signal was also at the Mars 90-degree level.
Remember what we said about BUYs. Since the channel slopes up, the S/L decreases, and TP increases as time elapses.
Some traders also look at the 1st winner as opportunity for them to stay in the 2nd trade longer in an attempt to capture higher TP.