Quote:
Originally Posted by Learning_pips
Helloo Learning pips,
You know what your questions does to me? it challenges me...really, it does..like digging
down the well of yourself..believe me guys, these questions are NOT easy, though
simple..neither is understanding market behaviour or ''tells'' for consistent
profitability..
So we go back to our monthly charts on the GBPUSD..remember last time, we talked about a
reversal date of 4 to 8 months from now, for the cable..in which , price would have reached
a high probability turning point from its downtrend to (A) an uptrend reversal or (B), a
sideways consolidation or range in which the market is not ready to reverse but would
continue trading in the same direction as the current trend.So price on cable has a maximum of 9 months to show a reversal, according to the Reversal Date technique.
http://i72.servimg.com/u/f72/11/82/15/01/monthl10.gif
We shouldnt mix the concept of the Reaction Swing and Projected Reversal Date with the 60%
buy/sell windows. The R.S is mainly used for TIME PROJECTIONS while the 60% buy/sell windows
are more useful in the realm of PRICE PROJECTIONS.Now look at BC, the Reaction Swing where
we got the centre of the circle in which the past can project the future..though price would
have triggered our centre of the Reaction Swing @ 1.8300..it made a turnaround at the 60%
window..where the red arrow was.. Except you got very deep pockets to withstand a $1300 pip
downward move with leverage,you would've been stopped out..It was at the 2nd try, where the
blue arrow was, that price cleanly triggered the buy stop at the centre of the Reaction
Swing, and rocketed up..
Another difference is the R.S/R.D are mainly used in PRICE RETRACEMENTS, while the BUY/SELL
WINDOWS, are mainly used PRICE TRENDS..Always understand the difference, like understanding
your reality..''where Am I At In The Present Moment Of Now?'' Where Am I In The Greater
Scheme Of The Universe?Am I in a full trend or a retracement/correction?
2 Actually, you can apply those TIME PROJECTION TECHNIQUES on any timeframe, whether 5min,
15min, hourly, or weekly,etc.. The major challenge is counting those bars or candlesticks,
for the lower the timeframes, the more Reaction Swings inherent in them, and the more you do
your counts.. Since John Crane is from the futures/commodities world, most of his strategies
are different, yet similar to those in the forex world. His brilliant book, ADVANCED SWING
TRADING'', is very helpful for swing and position traders..
Hmmm, Mageroi, you might be quite right there..though they still have their uses..Is Time
Projection a core strategy of Buffetology?
Well, Mahir,
just dont overlook GOLD as an alternative asset class, that traders run to during periods of
market uncertainity.
OPEC ends Cairo meeting without new output cuts - Yahoo! News
Even lower, danew...Price on the cable have up to 9 months to prove it.
NOW,SUNDAY,our previous order is still on,.we put a sell stop on GBPUSD @ 1.5300..1st target
@ 1.5260...2nd target @ 1.5175..3rd target @ 1.5090..sl @ 50 pips away from entry..
[10:32:33 26/11/08] Stalion : we also put a buy stop on gu @ 1.5540...1st target @
1.5580..2nd target @ 1.5615
[10:33:04 26/11/08] Stalion : sl @ 40 pips away..
If you care to observe, both buy and sell stops are at the extreme end of the Thanksgiving
week range..so we call this THE MONTHOBAMA TECHNIQUE
http://i72.servimg.com/u/f72/11/82/15/01/montho10.gif