A-B-C-D Trade - page 232
You are missing trading opportunities:
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
Registration
Log in
You agree to website policy and terms of use
If you do not have an account, please register
EUR/USD probed below Oct 3rd low 1.3163, to 1.3144 at 07:45 this morning. This triggered stop-losses on bounce trade positions that didn't get out quick enough or had too tight of a S/L.
The FC 31.4 provided support, as well as the SDC's mid-channel (lower left chart), prior to bounce and consolidation after positive EU data at 09:00.
Bernanke spoke and pair ascended, where Moon 90 and other resistance meet (about 1.3305).
Attached is the 15-min chart that was in the upper left. We placed arrows on chart, that points to turns we mentioned during live conditions (except for 1st SELL).
We now have intra-day plot Low = 1.32511 High = 1.32996
This shows 127.2 extension to top and now back down to 61>8 fib. Good exit as it is near FC 61.8 (white)
Here's are excerpts from an articled linked in the Gann Is The Man thread.
In October 1909, Richard D. Wyckoff, Owner and Editor of The Ticker and Investment Digest asked Gann for an interview to document his trading ability for one month.
The interview was granted, and Gann's trades were monitored for 25 market days during the month of October in the presence of a Ticker representative. At that time the markets also traded on Saturday.
Gann made 286 trades in various stocks, both long and short. There were 264 trades that resulted in profits and 22 in losses. 92.3% of the trades were profitable.
The capital used doubled ten times resulting in 1000% gain on his original investment during those 25 trading days.
What makes this even more phenomenal is that Gann did this with an average time between each trade of about twenty minutes. In one day Gann made 16 trades in the same stock, 8 of which were in either the top eighth or the bottom eighth of that particular swing.
Such a performance is unparalleled in the history of Wall Street. As stated by James R. Keene, the famous speculator of that era, The man who is right 6 times out of 10 will make his fortune.
It seems a foregone conclusion that Gann was picking tops and bottoms with a high degree of accuracy.
*******
Our last 4 picks for intra-day turning points were at or close to tops/bottoms, with the 4th one pending. Since we are nobodies, that means you can do it too. However, it does take a commitment to study and practice.
That incredible display by Gann, which was officially documented, proved that he was real. Obviously he couldn't reveal all of his secrets, since that would destroy the market with everyone being on the same side of the trades.
About 2 weeks ago, we posted a USD/CHF 1-hour with Ichimoku, Standard Deviation Channel (SDC) and fib channel FC. Price hit all expansion levels on that strong uptrend.
This pair had since made a 50% pullback from 9-22 to 9-29. We applied SDC plot from high-to-high: Sept 29th 10:00 .91783 and Sept 28th 23:00 .90206.
FC aligned to SDC's lower to higher channel lines.
Horizontal fib plot from swings B-C High = .91783 Low = .89177
After monitoring price interaction, we can be confident of plot after the FC 61.8 expansion level.
That set up the shorts at the next levels. On most occasions, both the FC and horizontal extension levels converged.
Conversely, trading with the uptrend would involve buying at the dips where price action met support provided by these levels.
Some traders can add their own favorites to something like this. Such as the MurreyMath1.0 indicator (not shown).
This is another example of plotting for fib clusters, with a trend indicator overlaid onto chart.
The perfect Carney Bullish Butterfly is overlaid onto ZUP pattern.
Today was trigger for BUY.
Only flaw was retrace of X-A leg. ZUP pattern was .854, while perfection is .786.
Horizontal white fibs are from a wide plot.
Analysis of last Friday Sept 30th, on this 1-hour chart with Ichimoku, PSQ9 and FC.
Due to the large space between PSQ9 90-degree levels with this pairs, using 45-degree intervals provides more S&R.
Aligned FC to Moon 135 to Moon 180.
Price on Sept 30th 02:00 to 05:00 has support at the red Mars 270-degree. This is also the location of the bottom edge of Ichimoku cloud. Edges act as S&R, especially respected by Yen pairs.
We also had a BAJA bullish divergence. Entry open of 05:00 at 76.54 + spread = 76.57.
Because the -31.4% fib for S/L is a lot closer from the Mar 270 (red), this scenario offers ability to use more leverage due to scaling of lots traded.
S/L below the -31.4 fib = 76.39. Risk = 18 pips
TP1 @ FC 61.8 price 76.88 hit 09:00. Reward = 31 pips (1.7:1)
TP2 @ FC 100 price 77.08 hit 14:00. Reward = 51 pips (2.8:1)
***
Large bounce down off Mars 315-degree at 11:00 period (76.93). This was bounce trade opportunity if we have other confirmation/cluster.
There was BAJA bearish divergence there. That level was also the 88.6 retrace fib from last B-C swing (not shown). Max move down was 24 pips to the 38.2. Candle closed at the FC 31,4.
Continuance of our 30-min PSQ9 chart, with SQ9(Price) start price 1.36890, direction down.
We also had fibo fan plot using High = 10-3 10:30 1.33802.
The Low moved to 10-4 18:00 1.32315.
Same FC alignment Moon 270 pulling up to Moon 0-degree.
Added horizontal fib plot (yellow) pegged to last Oct 4th upswing:
Low = 1.32315 High = 1.33678 (same as SQ9 248-degree)
***
Early Asian today saw pivot low at the 78.6% retrace,
which also had 01:00 candle close at the FC 61.8 (white).
That down move came off a bounce (short) from SQ9 248-degree level near previous Oct 3rd high (fibo fan high)
Price chopped up and respected the fan levels.
The set-up was for a short at the previous high 1.33678 level.
This was not the first revisit to that level, and thus carried a higher risk.
The FC 138.2 acted as additional resistance. A 10:30 Doji candle formed at the hit to the top. The pivot, 10:00/10:30/11:00 candles respected the 88.6 fan ray (orange).
If entry waited for that pivot, price = 11:30 open 1.33452.
S/L above 10:30 high 1.33734 + spread/cushion = 1.33780. Risk = 33 pips
That risk amount is too large for a quick hitting bounce trade, so you have to be convinced that it has a chance to move lower. It did, to the 50% horizontal fib 1.32997.
After 5-pip spread/cushion = 1.3305. Reward = 40 pips. But that's if you caught the entire move.
***
The quick hit bounce trade had entry set at 5 pips below previous high of 1.3363.
If you look at the MurreyMath1.0 on 5-min chart, you'll see 8/8th level at 1.33667. Candles stopped precisely there.
S/L just above Oct 3rd high 1.33802 + 5 pips = 1.33852. Risk = 17 pips
The 5-min +1/8th MML = 1.33820.
TP targets include
Mars 90-degree (red) 1.33340 for about net +25 pips R/R = 1.5:1
FC 100, which is the Moon 90-degree. Hit 11:30 1.33220 for net + 36 pips R/R = 2:1
Pulling FC from Moon 180 down to Moon 90-degree.
Support at Moon 0-degree, with probe to FC 138.2 on Oct 4th 07:00.
The -31.4 level was support Oct 3rd, was resistance Oct 4th, and Oct 5th.
The 10:00 Oct 5th hit (today) to the -31.4 closed at the Ichimoku cloud's upper edge. This edge is called the Senkou Span B.
The 31.4 below the Moon 90 acted as support.
...and last, but not least, is the view with PSQ9 Moon intervals of 45-degrees. Just add following degrees (angles) 45, 135, 225. 315. Save as template to avoid restructuring chart in future.
The peak we spoke about for short during the 10:30 period was a precise hit to the Moon 135. The previous high of Oct 4th 20:30 also hit that level.
We also added the SQ9(Price) with start price of 1.31443 and direction up. The 180-degree level is right at the 10:30 high.
When things are choppy, good to look at the 45-degree levels.
The PSQ9 levels set at 45-degree intervals. Horizontal fib plot (yellow):
Low = 1073.90 High = 1125.40
127.2 = 1139.40 which is also at Mars 315-degree. Previous Oct 3rd 12:00 high 1139.10.
Price now falling.