As of now I am still few pips behing on buy so negative counting is going on!
I have never used Stochs myself so can only talk aboput RSI. I have noticed that 14 day RSI on daily chart is pretty reliable. This is in contrast to RSI on smaller timeframes that behaves more volatile. To this effect RSI can be used as a predictive tool for the direction of the price. So here we have the wave telling us the trend and RSI showing the likelihood of the price momentum within that trend.
All of us have a pet indicator that we allways use regardless. Mine is Ichimoku charts. They provide me with the additional info. I also look at 4-hour, 1 hour and 15 minutes timeframes in case. Well not exactly a text book approach but it works for me most of the time.
hey, yes have miners book too. very nice but those int ext app is confusing. try to figure it out and reply my results. nice thread here in conjuction with the gartley thread !
sweetpip wrote:
The 3rd fib…this is drawn, again with the basic retracement/extension tool, from B to A and we look at where it’s external fibs land. We’re not really using this fib much with the gartley’s although TMoneyBags does describe them in his first posts. They are used to confirm and converge with the key levels of the first 2 fibs.
can you please expalin which two frist fib levels you mean?
Here’s a really good 4 part video lecture series that Hess posted a link to yesterday. The presenter goes into detail to explain price action & wave action…trends & corrections.
After watching just the first 2 videos, I checked all my charts looking at the structures price was making and opened a couple of trades that followed the logic in conjunction with Miner’s logic…and… it worked out pretty good…
Now apparently there is a software package that this video is building up to sell, but aside from that, I think it’s definately worth watching and has a great educational value!
You know the fibs you draw for the gartleys?..the first fib is drawn from X to A and gives you a series of lines (ratio levels)…[B]I call this a fib set[/B]…and you only look at the [B]INT(ernal)[/B] fib levels… .382, .5, .786, .88 …the range [B]inside the 0 & 100%[/B] lines.
Then with the gartleys you draw the 2nd fib set from B to A and move it to C which gives you another series of lines (ratio levels)…these are your [B]APP[/B] levels and you only look at any ratio lines/levels outside the 100% to converge with the fib set you drew from XA…sound familiar?..lol. Actually technically these are EXTernal fibs too, but it depends on what you’re measuring/projecting and APP is a way of labelling them and identifying what they are doing…[B]measuring a retracement, or projecting a target.[/B]
With a correction, you only need 1 APP fib set …with a trend, you need 2 or 3 APP’s because there are 5 waves to project where it could possible end.
With the 3rd fib set you only look at the [B]EXT(ernal)[/B] ratios…1.272, 1.618, etc again [B]outside the 100%[/B].
As with the gartleys & butterflies, you want 1 line from each fib set to converge close together.
All three sets give you both internal (within 0-100%) and external (outside 100%) levels, but you only work with one from each…ignore the rest.
I will try to get a chart prepped for you tonight as I’m at work right now and don’t have access to a chart with a fib tool.
Well EUR/USD daily passed that 50% Fib that I believe now indicates the end of corrective wave A which I have drawn in pink. The candle touched on the new 61.8% Fib line before retreating. Will that wick at the top of today’s candle be the end of corective wave B? If that is the case then expect a downtrend so I am shorting now.
I am less certain about the angle of RSI (shown in blue ellipse). I give myself the benefit of doubt and hope that RSI will flatten and turn south.
Well it appears to me that the corrective waves A & B on EUR/USD daily have comnpleted and we are in the beginning of the corrective wave C. C is supposed to be the longest of corrective waves. Please see the attached chart.
Today’s behaviour was reasonabley predictable providing a good source of pips. Interestingly enough RSI is behaving well thus confirming the sentiments echoed by the price action.
I have now been trading this method for a good 10 days. To be fair I have not followed the prescribed rules all the way, although I have tried to add my own insight into what is going on. Bar once or twice I have made profits with this method.
In terms of the title of this thread “A System that can’t Lose…” and the original contentious issues, I would just add that in my opinion this approach provides a good basis for a higher probability trading method, “higher” being a relative term. However, like any other known method in public domain, one needs to add additional contribution of his/her own (i.e. customise it) to make it a success.
I saw a new posting titled “Trading short term time frames and moving averges in a trend pt.2” by Queen Cleopiptra in Chartology. Now I did not make sense of that article. She talks about higher timeframes and lower timeframes plus SMA. I made a comment about this article (printed in comments section). Anybody making sense of that article please let me know.
With our declining economy, worthless retirements, rampant foreclosures and high unemployment Americans are trying alternate methods for investments. Many are wanting to invest in penny stock, since they really don’t have a lot to invest in to begin with.
I spoke too soon the other day but I believe now we are in firmer ground seeing EUR/USD daily going down. I opened the sell position too soon but kept it open and now it has started paying off.
