A-B-C-D Trade - page 147
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Here are the 2 templates, and 4-hour charts. We also added the RSI(4), EFT, and HEMa Step Histo. Obviously, you can just eliminate the indicators you don't want.
The settings for the Planetary Square of 9 (PSQ9) indicator:
USOIL when price trading above $100: digits = 5, multiplier = .01
USOIL when price trading below $100: digits = 4, multiplier = .01
XAU_USD (Gold): digits = 4, multiplier = 1
Default for Planet 1 is Moon = 1
The other planets = -1
Apply to chart 4 times, each with different "angles" in setting, 0, 90, 180, and 270. The template has this already loaded.
We added Mars, so input Planet 1 = 4
The other planets = -4
Apply to chart 4 times, each with different "angles" in setting, 0, 90, 180, and 270. The template has this already loaded.
When we saved templates as PSQ9 X 8 as the 2 attached, it means the above 8 are applied.
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Comments for attached 4-hour charts:
USOIL
We can see the divergence on the Apr 29th 16:00 candle period. 30-min EFT trigger at May 1st 22:00 113.88. The stop-loss placed above pivot 114.15, for risk = 27 pips.
When we zoom in on the 30-min chart, we can see the market move down after entry and respect each level of support provided by the PSQ9.
Plotting the fib would be High = May 1st 114.10 and Low = 02:30 112.23. That resulted in regular 161.8% extension of 111.07, which is right at the 2 PSQ9 lines. Those lines are both Moon and Mars 0-degree lines, hit 09:00 period.
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The Gold CFT XAU_USD chart has an ABC going up that culminated with a FE 127. That top was set Sunday 22:00 in reaction to the breaking news.
Traders can also conduct bounce trades off of the PSQ9 lines of S&R, using other confirming signals such as divergence, and entry triggers such as the EFT.
CFD is Contract For Difference, and is offered to non-U.S. citizens. Besides USOIL and XAU_USD (gold), there are:
SPX500 - this mimics the S&P 500 futures
US30 - this mimics the Dow 30 futures
Use the same PSQ9 settings or template for XAU_USD on SPX 500, per attached chart.
The US30 needs to be set at: digits = 5, and multiplier = 1
Chart 1 is EUR/USD 30-min, with red PSQ9 Moon and Mars X 4 angles each. The flat red lines are the Mars lines and the steeper sloped red lines are Moon lines.
We have 2 SELL moves illustrated that sandwiched a BUY move.
The 1st SELL is started by a BAJA bearish divergence at close of the May 2nd 15:00 candle. It pivoted in a small way at 20:00 for the Low. The extension to the 138.2 of 1.47822 hit at 23:30, for about + 90 net pips.
If trader withstood subsequent large pullback, pair made the 161.8 extension at May 3rd 08:00. This area is also where the PSQ9 Moon's 0-degree is located.
This bottom also registered a BAJA bullish divergence, and after the bounce came back down, the same PSQ9 provided support. The pair went on to make a 161.8 to the top near previous high, on May 3rd 15:30. The PSQ9 Moon 90-degree provided resistance.
The high off that last trade starts the 2nd SELL move that pivoted at 18:30. That resulted in extensions to the 138.2 = 1.47882 (hit May 4th 01:00, and the 161.8 = 1.47713, hit just above at 01:30. This bottom is exactly where the PSQ9 Moon 0-degree is located. This is the same line that was the bottom of the 1st SELL.
We recently provided settings and templates for the PSQ9 applicable to SPX 500 and XAU_USD (gold). We have inserted more lines to the Moon degrees, splitting the section in half.
Therefore, the angles are now 0, 45, 90, 135, 180, 225, 270, 315.
The attached XAU_USD chart shows that these additional levels assist us better on certain instruments such as these 2. The Moon lines have a steep slope.
We left the Mars alone (flat lines), but the user can decide if they want to add more.
Oil declined for the 3rd straight day. The attached 30-min chart starts the week with a May 1st 22:00 BAJA bearish to the 161.8, which concluded at the Moon's PSQ9 0-degree (gold) line on May 2nd 09:00.
From that bottom, a BAJA bullish developed, pivoted during 12:00, and exntending to its 200%. This top is also where both the Moon and Mars 270-degree line meet.
The top had a 1-Hour BAJA bearish divergence at May 2nd 15:00. The fib plot is Low = 08:30 112.25 and High = 15:00 114.80.
The decline from this high was slow and consolidated at the 50% fib, and then again at the 61.8%, before reaching the 100% retrace level at 18:00. USOIL channeled until this afternoon's weekly crude oil inventories rose (data released at 14:30).
The data pushed oil to the 161.8 extension at 16:00, which was also met by the PSQ9 Moon 90-degree.
Here is XAU_USD on 30-min interval with the PSQ9 Moon and Mars. Per recent post, we increased the lines/interval in which the Moon's lines are plotted, by adding the 45-degree intervals.
The PSQ9 indicator is similar to the Gann_SQ9 in that we can adjust the degree interval. However, The Gann_SQ9 is based on price on the Gann Wheel, and angles based on a starting price and how price aligns with that.
The PSQ9 takes the planetary "aspect", which is the degree/angle in which a planet is against another planet. We like to decribe this as astro-physics.
Gann revealed in his later years, that he used the faster planets, but did not detail much.
The attached chart plots an ABC with swings at May 3rd 05:30/18:30/May 4th 12:00. It made a strong move to the downside after Sing C, which was also a BAJA bearish divergence formation.
The pattern's FE 161.8 was hit at May 4th 16:00 candle period. This pivot was also where the PSQ9 Moon 225-degree is located.
When AUD/USD is trading above 1.000, we use the same template as applied to EUR/USD.
Attached 1-Hour has Swing A, which is a BAJA bullish divergence, on Apr 19th 06:00 low 1.04421. Swing B = Apr 21st high 06:00. Swing C = Apr 26th 02:00 low 1.06761.
Swings B and C were met with the thick red Mars lines. The pair ratcheted up from Point C to the FE 100 (hit May 2nd 00:00), which is Point D. The Mars 270-degree (thick red) and Moon 270-degree (thin diagonal red) were right there too.
There was a double top as it was revisited at 15:00. This top coincided with the major new event and reactions.
The pair subsequently made a reversal to the downside after the double top. The chart is labeled with the 138.2%, 161.8% and 200% extensions (pivot low = May 3rd 10:00).
The 138.2 had support from the thick Mars 90-degree.
The 161.8% was met by the diagonal Moon 0-degree.
The 200% was near the thick Mars 0-degree line.
The 200%, as we can see, is the same price level as Point C and the Mars 0-degree was there both times.
One level above this is the 90-degree, which also played a prominent role, at Swing B and the 138.2 extension from Point D.
Practice plotting your fibs, as usual. The space between the ABCD had mini-extensions.
When first looking at a chart, we need to figure out where we are at, in relations to the big fib picture. Once we figure that out, we can be very confident of our support and resistance levels, and projection of where the market is heading.
Early on in this thread, we said that we trade in 3 ways:
1) Breakouts. This can be in the form of the Asian session, channels, breakout of Point B, etc.
2) Bounce trades off of S&R, and generally very quick trades. Now, with the PSQ9 indicator, this has been made even better.
3) Between S&R. This is taking trade from one S&R level to the next.
When pulling your fibs, try to match one or more fib with a PSQ9. That makes the likelihood of S&R stronger.
Just like on post #1451, we have the 30-min EUR/USD and plot an Andrew's Pitchfork. We then use the fib channel tool and align it with the middle and upper fork's trend lines, to project more diagonal fib channels.
Andrew's Pitchfork require click on 3 points. The 3 trend lines (purple on our chart) will then appear.
1) Handle = May 2nd 15:00 high 1.49009
2) Upper = May 3rd 15:30 high 1.48891
3) Lower = May 3rd 08:00 low 1.47532
Now take the fib channel tool (green on our chart) and line up the 1st click point with the fork's middle trend line. Then drag the 2nd line to the fork's upper line. Make sure it is aligned as best you can get it.
Once again, we have a result of the fib channel's 161.8% as the pivot point top. That was also a vertical 161.8 extension (white).
This take a little practice, but if these situations are recognizable, we can take advantage.
Here is the 30-min. After BOE and ECB held rates, pair was shorted heavily mainly based on Dovish stance of ECB. It implied that they may not be raising rates aggressively as some traders thought.
The verbiage triggered the large spike down to the 200% extension. The PSQ9 Moon 270-degree intersects here. Plot was High = May 4th 14:00 1.49300 and Low = May 5th 00:00.
That reminds us, since we work with numerology, Happy Cinco De Mayo!
1st chart is USOIL, which took a major dive May 5th. Part of reason is the bearish move of EUR/USD, as oil is priced in USD. Otherwise the market calls this "risk off".
The 1-Hour chart picks up where we left off on the last USOIL post, with a 1-Hour BAJA bearish divergence at the top. As oil slowly made its way down, we keep moving the low of the fib plot.
It becomes clear the the low to use was May 4th 16:00 108.45. The top was 114.80 on May 2nd 15:00. The break of the low price support came on May 5th 09:00. It accelerated even more when New York session came on board.
The blue fib levels beyond 161.8 are: 200, 223.5, and 261.8, and the move hit the 261.8 at 18:00 and bounced. The PSQ9 Moon 270-degree was there as well.
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The CFD for gold, XAU_USD is the same 30-min chart as last post on gold. We use the BAJA that was on Swing C, but it became Swing A for the new ABC.
ABC swings: May 4th 12:00/16:00/May 5th 04:30.
The move made an exact hit to its FE 161.8 of 1461.96 during 18:30. Prior to that, two PSQ9 lines held a pullback. This occurred at 13:30, and was restrained by the Moon's 225-degree and Mars 270-degree intersecting at that point.
Another intersection was at the FE 127, where we saw a bounce back up to the FE 100 before advancing to the FE 161.8. Both the EFT and HEMa gave traders guidance for bearish trend.