I added and deleted ZigZag from my charts three times before coming to the conclusion that, for some reason, my computer’s virtual memory was virtually sucked dry while the indicator was on the charts. It was like trying to trade while submerged in plasma. Of course that’s just a guess, never actually traded in plasma. No idea why this happened, at first I thought the computer caught a big time bug or that InterBankFX was screwing things up from home base. I’m curious if anyone else experienced the same situation
I closed my IC Wave Retracement short at .9639 with a loss of 2 pips.
I felt it was better to play by the rules and look for a long since RSI on the Daily chart was over 50, so i caught the next indication for a long at .9639, based on the Active Wave shown on the attached chart.
All in all… yesterday i said there where three things possible.
[B]"This rally can continue in 3 ways i think.
The price rallies and breaks through 9750 directly.
The price bounced of 9750 and retraces to 38.2 or 9558
The price fails now and starts the decline"[/B]
The price didn’t retrace to 38.2 but it retraced to 25.0, so it was just looking for a small breather before the final attempts at 9750
I believe we will have our go at 9750 today.
The outcome is a break over or a bounce back down.
Thats pretty much it.
Please take a look at the attached chart.
The reason i went long was because at least one (1) whole candle had closed above the 75.0%
I will keep on redrawing the fibonaccis at every available new wave with at least 40 pips in length, to determine whether we should continue holding the trade or when we should exit.
This system is pretty interesting, so lets see how things go.
We have determined that a new wave is active by noticing a correction taking place.
We signify the new active wave and redraw our fibonnaccis.
We desrgard the previous AW 1 fibonacci levels.
Criteria to hold the long trade: Resumption of the uptrend Criteria to exit the long trade: At least one whole candle closes under 75.0% of the newly drawn active wave Fibonacci level.
We have determined that a new wave is active by noticing a correction taking place.
NEW W40 LOW @ 9637
NEW W40 HIGH @ 9676
I will call these waves W40 from now on since we need at least 40 pips and a visible correction to identify a new wave.
In a successful trade my chart may look like. W40.1 > W40.2 > W40.3 etc. untill the trade is terminated.
We redraw our fibonnaccis.
We desregard the previous W40.2 fibonacci levels.
Criteria to hold the long trade: Resumption of the uptrend Criteria to exit the long trade: At least one whole candle closes under 75.0% of the newly drawn active wave Fibonacci level.
NEWS UPDATE:
US Dec PPI is 0.9% vs. exp. 0.5% and prior 2.0%; core PPI is 0.2% vs. exp. 0.1% and prior 1.3
Slightly higher than expected PPI gives the dollar a small boost, but US Treasuries are not reacting in a significant way, up only 0.8 bps at 4.755% in 10 years
We determine that a new wave is active by noticing a correction of a valid W40.
(At Least 40 Pips prior to the correction)
We redraw our fibonnaccis levels*
We disregard the previous W40.4 fibonacci levels*
NEW W40 LOW: 9650 NEW W40 HIGH: 9697
OUR BIAS: No one “whole” candle has closed under 75.0% Fibonnacci Level of the newly drawn W40 (40 Pip Wave) so we hold Long, until a whole candle closes below.
I’ve taken the liberty of moving my STOP LOSS to Break Even at 9639:
We determine that a new wave is active by noticing a correction of a valid W40.
(At Least 40 Pips prior to the correction)
We redraw our fibonnaccis levels*
We disregard the previous W40.5 fibonacci levels*
NEW W40 LOW: 9672 NEW W40 HIGH: 9716
OUR BIAS: No one “whole” candle has closed under 75.0% Fibonnacci Level of the newly drawn W40.6 (40 Pip Wave) so we hold Long, until a whole candle closes below.
I’ve taken the liberty of moving my STOP LOSS to Break Even at 9639 entered off a “whole” candle close above 25% of AW 1 or W 40.1
We determine that a new wave is active by noticing a correction of a valid W40.
(At Least 40 Pips prior to the correction)
We redraw our fibonnaccis levels*
We disregard the previous W40.6 fibonacci levels*
NEW W40 LOW: 9691 NEW W40 HIGH: 9741
OUR BIAS: No one “whole” candle has closed under 75.0% Fibonnacci Level of the newly drawn W40.7 (40 Pip Wave) so we hold Long, until a whole candle closes below.
I’ve taken the liberty of moving my STOP LOSS to Break Even at 9639 entered off a “whole” candle close above 25% of AW 1 or W 40.1
Cable’s rise from 1.9261 resumes and strengthens to as high as 1.9742 so far. At this point, further rally is expected to follow towards 1.9750 resistance. As discussed before, break of 1.9750 will encourage further rise towards 1.9846 high.
On the downside, below 1.9675 will argue that a short term top is formed, probably with bearish divergence condition in 4 hours MACD too. Focus will then shift to 1.9587 support. Touching of 1.9587 will confirm that a short term top is formed and should bring lengthier consolidation. But even in such case, downside is expected to be above 1.9452 resistance turned support and bring rally resumption.
In the bigger picture, correction from 1.9846 has completed after three waves down to 1.9261. Break of 1.9846 high will confirm that rally from 1.8517 has resumed for next upside target of 138.2% projection of 1.8090 to 1.9142 from 1.8517 at 1.9917. However, close attention will be paid to sign of loss of upside momentum and reversal pattern formation as cable approaches key cluster resistance of 2.0106 (1992 high, 100% projection of 17047 to 1.9024 from 1.8090 at 2.0067).
On the downside, it will take a break below 1.9452 support will argue that the whole rise from 1.9261 has completed and shift short term focus back to the downside.
We determine that a new wave is active by noticing a correction of a valid W40.
(At Least 40 Pips prior to the correction)
We redraw our fibonnaccis levels*
We disregard the previous W40.7 fibonacci levels*
NEW W40 LOW: 9691 NEW W40 HIGH: 9777
OUR BIAS: No one “whole” candle has closed under 75.0% Fibonnacci Level of the newly drawn W40.8 (40 Pip Wave) so we hold Long, until a whole candle closes below.
[B]We determine that: [/B]One “whole” candle has closed under 75.0% Fibonnacci Level of the newly drawn [B]W40.8[/B] (40 Pip Wave) so we terminate our Long.
ENTRY: 1.9714 SL: Currently Floating CURRENT PROFIT: 0
We determine that a new wave is active by noticing a correction of a valid W40.
(At Least 40 Pips prior to the correction)
We redraw our fibonnaccis levels*
We disregard the previous W40.8 fibonacci levels*
OUR BIAS: No one “whole” candle has closed over 75.0% Fibonnacci Level of the newly drawn W40.1 (40 Pip Wave) so we hold Short, until a whole candle closes over.
Please look at the acompanying Head and Shoulder chart as well.
This is a very valid possibility considering that we got rejected by 9750.
We may well have a top here.
Don’t forget that if you like what you see in my posts and you want to see more … you can help me get pumped and enthused for the next post by kindly rewarding my modest donations with the thanks they deserve by giving me a few Reputation Points!
Gotta move up you know
Much Appreciated.
Regards,
E. Lang
PS: Today we’ve made 175 Pips (Closed Trade) and Currently Floating with a short at 25+
It is rather relative, depending on your current bias, what position you have floating.
It is generally 75 to terminate the position and 25 to enter.
EG: If you draw a bullish wave and you don’t have a floating position, you could short when a whole candle closed below 75.
So as you can see in this case you would use 75 for a short entry.
Vice Versa for Bearish W40 waves.
Dear [B]Pwegner[/B]:
Thank you very much for your kind words! I hope you learn things here that help out with your trading!
And when you get good share everything you know, because there is enough bread for everyone.
We tend to sometimes underestimate that even the simplest of words we say in a place like BabyPips can be the key to unlocking someones padlock of Trading Faults and Dilemmas.
… you can help me get pumped and enthused for the next post by kindly rewarding my modest donations with the thanks they deserve by giving me a few Reputation Points!
