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-   -   D1 Elasticity Pullback Trading (https://www.forexfactory.com/showthread.php?t=973872)

ghbdr Jan 18, 2020 2:24pm | Post# 261

NZD/USD seems to be failing. Wasn't there a valid buy entry?
D1 OS cycle. W1 OB cycle with elasticity. MN LH sequence with elasticity. I expect the W1 elasticity resume when D1 bull cycle Will end. Before that you can net 100 pips Up. When D1 and W1 meet Up then start chasing the MN bear LH sequence movement. Hope you will get it

Ican2020 Jan 18, 2020 2:52pm | Post# 262

{quote} D1 OS cycle. W1 OB cycle with elasticity. MN LH sequence with elasticity. I expect the W1 elasticity resume when D1 bull cycle Will end. Before that you can net 100 pips Up. When D1 and W1 meet Up then start chasing the MN bear LH sequence movement. Hope you will get it
This is weekend and no live trading. So, illustrate the above using image, please

ghbdr Jan 18, 2020 3:47pm | Post# 263

Please correct me, if I am wrong. Your strategy is easy to understand {image} {image}
Perfect weekly analysis and D1 entry

ghbdr Jan 18, 2020 4:06pm | Post# 264

NZD/USD seems to be failing. Wasn't there a valid buy entry?
Now its making a retrace but please go to H4 and check the elasticity, Then go to D1 stoch and compare with W1 and MN, Prcie will go up but on D1 trading things go slow and big drawdowns are common till trade goes green. Thats D1 nature. If you trade for big and slow profit be prepared for big and slow drawdown first

ghbdr Jan 18, 2020 4:13pm | Post# 265

Equity market looks tired. Gold long or JPY long would be good for the next week in my opinion. Have a good weekend.
For Gold I agree but for JPY pairs we need to see bear cycle completed before heading to long term bullish bias talking about future D1 entries

ghbdr Jan 19, 2020 3:16am | Post# 266

Please correct me, if I am wrong. Your strategy is easy to understand {image} {image}
Your Overbought level is 74.4. You should use 76.4 instead

Blackeagle Jan 19, 2020 4:21am | Post# 267

{quote} Your entry is one candle late. Entry 10 pips under the close of the bear hammer as per HH failure rule
Do you take Elasticity between Stochs rule into account for entry with HH / LL Failure rule or just the failure and candle pattern is enough for entry? On your definition (Post #28), you state "When a new high or low is made during the elasticity development within the pullback". So according to your definition, the pullback must meet Elasticity Rule, but I saw some chart examples with HH / LL Failure trades which do not meet this rule. Therefore I just asked to make sure if there must be elasticity between stochs for this type of trades. Thanks in advance.

Regards,
Blackeagle

Blackeagle Jan 19, 2020 5:02am | Post# 268

On post #25, you wrote "I measure divergence according to the slower stoch 14 3 3 (red one) not the fast 5 3 3".
On post #33, you wrote "You can spot the hidden divergence in any of the stochs but I prefer to see the divergence on the 5 3 3 the fastest one".

You measure hidden divergence, without Elastic Divergence, on slower stoch 14 3 3, but when there is an Elastic Divergence, you prefer faster stoch 5 3 3 to spot hidden divergence. Would you please confirm if my understanding is correct? Thanks.

Regards,
Blackeagle

ghbdr Jan 19, 2020 5:13am | Post# 269

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{quote} Do you take Elasticity between Stochs rule into account for entry with HH / LL Failure rule or just the failure and candle pattern is enough for entry? On your definition (Post #28), you state "When a new high or low is made during the elasticity development within the pullback". So according to your definition, the pullback must meet Elasticity Rule, but I saw some chart examples with HH / LL Failure trades which do not meet this rule. Therefore I just asked to make sure if there must be elasticity between stochs for this type of trades....
I use the higher TF cycles to base my trades. Please see the example. For the Monthly stoch bear cycle to complete we have three significant W1 elasticity setups that correspond to three D1 extreme OB stoch cycles. So yes when I see that I go for the trade on D1 without elasticty, the elasticity is traded cause its happening on W1 chart

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ghbdr Jan 19, 2020 5:14am | Post# 270

On post #25, you wrote "I measure divergence according to the slower stoch 14 3 3 (red one) not the fast 5 3 3". On post #33, you wrote "You can spot the hidden divergence in any of the stochs but I prefer to see the divergence on the 5 3 3 the fastest one". You measure hidden divergence, without Elastic Divergence, on slower stoch 14 3 3, but when there is an Elastic Divergence, you prefer faster stoch 5 3 3 to spot hidden divergence. Would you please confirm if my understanding is correct? Thanks. Regards, Blackeagle
Its correct

Blackeagle Jan 19, 2020 5:55am | Post# 271

Appreciate the quick response. Perfect charts, perfect explanation. Crystal clear now. Thanks for sharing this gem with FF community.

Regards,
Blackeagle

Xxyy Jan 19, 2020 11:39pm | Post# 272

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Markets is making more trade opportunities. Some more possible trades {image} {image} {image} {image} {image}
Hi ghbdr,

Please let me know whether my understanding is correct or not.

For AUDNZD, on D1, LH is confirmed with 1-2-3 candle V shape. Although there is only a slight elasticity on D1, but on H4, there is hidden (bearish) divergence. Therefore, it is still good to SELL. (Because there is Elastic Divergence on H4, we use faster stoch 5 3 3 (green stoch) to spot hidden divergence)

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Thanks,

hocius Jan 20, 2020 3:03am | Post# 273

{quote} Hi its only on daily charts D1 our can use H1 ?
He said that he found this pattern is only reliable on Daily or above.

ghbdr Jan 20, 2020 3:12am | Post# 274

{quote} Hi ghbdr, Please let me know whether my understanding is correct or not. For AUDNZD, on D1, LH is confirmed with 1-2-3 candle V shape. Although there is only a slight elasticity on D1, but on H4, there is hidden (bearish) divergence. Therefore, it is still good to SELL. (Because there is Elastic Divergence on H4, we use faster stoch 5 3 3 (green stoch) to spot hidden divergence) {image} {image} Thanks,
Its correct. I like to see the H4 slow stoch to make Lower Highs as is the case supported by the weekly elasticty with extreme OS stoch postion. Also the monthly stoch is pointing down so good short. The thing you need to consider is that when you see the weekly elasticty and D1stoch on the other extreme is possible that price will come back to test the recent high on D1 in the form of a elastic or classic divergence before going down and resume the W1 elasticity. So you should wide your stops to be prepared for that situation or trade without stops with the recovery system that has been provided in the thread before or any kind of grid money management approach. All of them will work for that particular case

ghbdr Jan 20, 2020 3:13am | Post# 275

{quote} Hi its only on daily charts D1 our can use H1 ?
I dont trade anything lower than D1

emonts Jan 20, 2020 4:37am | Post# 276

{quote} Hi ghbdr, Please let me know whether my understanding is correct or not. For AUDNZD, on D1, LH is confirmed with 1-2-3 candle V shape. Although there is only a slight elasticity on D1, but on H4, there is hidden (bearish) divergence. Therefore, it is still good to SELL. (Because there is Elastic Divergence on H4, we use faster stoch 5 3 3 (green stoch) to spot hidden divergence) {image} {image} Thanks,
HI,

So we look only to the purple arrows in this case?

BR

hocius Jan 20, 2020 5:32am | Post# 277

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Hello ghbdr, correct me if I'm wrong please. Here's my analysis for EU.

  1. On the weekly chart we can see a downtrend and an Elastic and Hidden Divergence.
  2. On the daily chart we just broke the last swing low.
  3. Now we would have to wait for the pullback up, the V formation and elasticity or divs to take the short trade?

Thanks!
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ghbdr Jan 20, 2020 6:35am | Post# 278

Hello ghbdr, correct me if I'm wrong please. Here's my analysis for EU. On the weekly chart we can see a downtrend and an Elastic and Hidden Divergence. On the daily chart we just broke the last swing low. Now we would have to wait for the pullback up, the V formation and elasticity or divs to take the short trade? Thanks! {image} {image}
Yes. In fact you are late. You should take the last D1 elasticity short setup with HH failure

hocius Jan 20, 2020 6:43am | Post# 279

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{quote} Yes. In fact you are late. You should take the last D1 elasticity short setup with HH failure
This is the last D1 short setup I can identify. But if we enter short at the close of candle 3 would be a bit late, no?
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ghbdr Jan 20, 2020 7:27am | Post# 280

{quote} This is the last D1 short setup I can identify. But if we enter short at the close of candle 3 would be a bit late, no? {image}
Yes you are late. The entry is after bear hammer (HH failure)


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