A-B-C-D Trade - page 244
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GBP/USd directional fib plot has its 138.2 near MML 5/8th 1.59912. Early bird short enter here.
This is chart on EUR/USD OS. We last pointed out price coming down to FC -31.4. It has just hit the FC 61.8.
Red horizontal line is previous low, serving as further guidance on entry/support.
Pic of both EUR/USD and GB P/USD shorts
Quick hitting short exit this area.
1-hour chart of gold CFD XAU_USD, with PSQ9. Fib channel plot from Moon 315, pulling up to Moon 45 (blue). Previous set-up for OS trade in this example.
During Oct 20th 16:00 period, price dipped to the FC -31.4 ($1603.70), as marked by yellow arrow. This was also location of Mars 0-degree (red).
Take-Profit (TP) at FC 31.4 ($1634.50) was hit the next day Oct 11th by the 11:00 candle period. As previously detailed, the S/L can be just below -31.4 or just below -40 ($1600.70).
Reward = net $29.00
Risk = net $5.00
R/R Ratio = 5.8:1 using -31.4 entry
R/R = $25/$5 and 5:1 using -25 entry
This is another way to use the OS (when Mars acts as additional S&R at entry).
Note BAJA bullish divergence on RSI(4) not shown on chart.
***
The yellow "X" to the right of the chart points to intersection point of Moon 45 and Mar 90 on Oct 25th (today).
The long 23:00 wick touched Mars 90 and Moon 45 (same as FC 31.4), bounced up and currently at FC 61.8 resistance.
This is a new week and as mentioned, the Moon lines ratchet up 31.4% from the previous week.
Let's take another look at yesterday's BUY off the FC -31.4 per last posts.
We made mention that the market is often still rsepecting the previous week's Moon levels. Move the plot of M180 to M270, down to align with last week's positions.
The attached chart shows this relocation. We also drew a yellow line at last week's Moon 0-degree (same as 360-degree).
We can see this week's price activity trade between last week's M270 and M 0-degree. This new plot also has its 31.4 level as this week's M270 location. Once again, we repeat that the new week has an increase upward of 31.4% of Moon line location (as measured in 90-degree interval).
After entry on the OS trade (arrow), price made a 100% extension to last week's yellow Moon 0-degree. This is one advantage of relocating the plot.
This yellow level is not otherwise seen this week. It coincides with the previous high of Oct 24th 06:00. This is also a bounce trade opportunity here at the top.
The 61.8 is the same location of this week's 31.4, which was the conservative exit level of the OS trade.
The lower blue dotted line is just a reminder of the last pivot lows from Oct 21st and 23rd, as further support at entry. The upper blue dotted line monitors that previous high.
In summation, there are still opportunities when the market is in consolation (ahead of Wednesday EU meeting). This is one application used to identify diagonal S&R.
Another, which can be further confirmation, is to apply the Standard Deviation Channel. Plot high-to-high Oct 24th 06:00 and Oct 25th 10:30 (not shown).
The SDC's lower channel line is respected after wick touches M270 at 13:30 (U.S. Open), by closing candle at that level. Subsequently, the mid-channel mean is respected Oct 25th 17:00.
Split screen with 15-min session colors on the left, and same PSQ9 chart, but with added SDC on right.
We can see the end of the U.S. session and the short off the mid-channel has arrived at the lower channel line of the SDC.
30-M chart with MurreyMath1.0
Horizontal fib plot: Yesterday's U.S. session Low/High 1.3849/1.3938
Pair traded in tight range after yesterday's U.S., prior to making a 138.2 extension to the upside at 13:00 period today.
That breakout was short-lived as price plummeted to the 161.8 on the downside, same level as MML 4/8th 1.3794 during 14:30 period.
Attached is 4-hour USD/CHF with PSQ9 Moon and Mars levels spaced at 90-degree intervals.
Let's focus on the Oct 17th 08:00 low of .88801.
Fib channel plot from Mars 270, pulling up 2 levels to Mars 90. We have the normal inputs for overshoot levels: -25, -31.4, -40.
The 08:00 candle dip hit the diagonal Moon 90-degree. That was also a -31.4 overshoot. Therefore, this example shows that the OS trade can also be conducted on the Mars lines.
Price moved upward and hit the +31.4 and +61.8 levels precisely.
Since the Mars lines are almost horizontal, it is similar to plotting horizontal/traditional fibs.
The difference is that the A-B plot points are stationary. In other words, we don't have to pick a high and low to drag the plot.
Now overlay a regular fib plot using B-C of:
Low = Oct 12th 16:00 .89177 and High = Oct 13th 12:00 .90383
Aside from the 08:00 dip being a 127.2 extension, we can see price probing above the plot's high during Oct 18th 12:00. This apparent breakout is the result of the necessity to touch the FC 61.8.
Here's GBP/USD 1-hour with PSQ9. We moved plot to Moon 225 pulling up to Moon 315.
This produced the overshoot levels of Moon 315. Price has recently hit support at the -25 level during the 15:00 period.
The earlier range-bound borders were Moon 45 and Moon 0-degree, prior to the breakout to the downside.
The horizontal plot using B-C swings (not shown) has close of 15:00 and 16:00 candles at its 161.8. The probe below was a necessity to touch the FC level(s).