The Delphic Phenomenon

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Hi.

Thank you for sharing.
How do you use Volume for this system?
I guess you know it is not really possible to read Volume in forex right?

Arctic4x

Well, I'd like to keep Volumes off this thread because they're always very discussed. We're talking about Tick Volume and anyway in MY opinion it could be useful. There are many VSA threads here and all over the web if you want to go deeper. I know many people don't use them but this doesn't mean it can't be useful someways. Now, what about coming back to the DP?

http://img521.imageshack.us/img521/6972/qwertt.gif

This is the evolution of the situation. I must say it's not a typical setup, but a long order could be opened. The pullback occured, but didn't touch the 18 EMA for nothing. I mean, what is more important, it's not the price touching the EMA, but the pullback itself, so the behavior of price without sticking to litteral rules. There are many powerful strategies out there, but applying them it's hard. So you should "wear" the method, feel comfortable in it, handle it. Interpretation and intuitiveness are key points, along with proper MM, R/R and proper leverage. This is a wonderful starting point, then everyone can develop it until you feel sure of what you do and happy with that.
From the next chart, no Volumes, so not an other word on it please

http://img443.imageshack.us/img443/6972/qwertt.gif

In shorter TFs the pullback was perfect, so no arguments on the trade setup, right? Always check the M15 chart, and work on H1/H4 or even Daily.
Don't forget to check sometimes the W1, because the inventor of DP suggests it and he seems right. The live W1 chart is that:

http://img232.imageshack.us/img232/6972/qwertt.gif

Huge support is very near, double bottom pattern, if you want. Plus Pin Bar forming, even if it is early to say that, considering that there are still 3 days until the definitive closure. Perhaps a bullish period coming for Euro???(Finally!)

http://img441.imageshack.us/img441/6972/qwertt.gif

Cable offers me the occasion to remark that sticking to rules is wrong. First, look to the PERFECT resistance that 1000 EMA caused. Then, with such a violent reversal, applying DP it's hard. It seems better with weaker and slower action. In fact the pullback in this case occured too late to consider it valid. The first move should be weaker than this, to gain strongness with the pullback. This time the down move was already exhausting and so more than a pullback, we had a consilidation.

Nice setup on AUD/USD M15/30, but already gone.
I see a good amount of you watching the thread...Come on guys, don't be shy! Post something, give me a feedback, negative or positive it doesnt' matter!
For today, this is my last post (sure enough), just try that guys! I could have an interesting thing to show up tomorrow, a little nut interesting thing.

http://img266.imageshack.us/img266/6972/qwertt.gif

And again an example of how powerful this method is. Maybe this method isn't enough sexy, but it's so simple and effective. No 100 %, sure, but look at the last 2 crossovers on EURUSD H1. The first on right top, was very profitable, but the pullback wasn't that strong. Anyway there were sufficient conditions for a bearish position. And today great pullback and explosive rebound to the high. It seems, as I'd said, Euro's breathing a bit. Remember the W1 chart. As you can see entries are so nice, but exits are a hard point. The key is trying to get out not too quickly, maybe with intermediate TP. Last thing, I recognize it's not very and adrenalinic method, but don't you prefer banking pips?

|Delphic Phenomenon|:This phenomenon occurs when the moving average of 18 periods and the moving average of 40 periods cross each other upward or downward and the price of the instrument has move above or below of the moving average of 18 periods.

|Danger Zone|:This is the area between the moving average of 18 periods and the moving average of 40 periods. In this zone is not convenient to open positions in the market because is where the direction of the trend is decided. For this reason it is best to confirm the break up or down to open a position.

|System Failure|:This occurs when the market makes a Delphic Phenomenom and instead of going up (or down) above (or below) the moving average of 18, it goes in the opposite direction and crosses the moving average of 18 periods. When this happens, the market tends to make a strong move in the direction of the failure of the Delphic Phenomenon.

Here's a little summary. Simply it adds the simple concept of Danger Zone; this system needs patience, no adrenaline, no scalping. We have all the time to check the price is going to the right side. System failure is an additional weapon if you want to quickly gain pips. But often price instead of trending , slows down and starts to range. The only danger for the DP is ranging market.
We have many ways to confirm the Momentum, everyone is free to use his tools.

Thank you for sharing

thanks for sharing
i usually trade with emas,
this is a good system, only need a good MM avoiding range periods!
in trend you could make 3 or 4 good trade in a row, and with the properly MM is a huge amount of $$!!

To demonstrate the potential of this strategy, and its flexibility, here it is the last days Dow Jones 30:

http://img140.imageshack.us/img140/1...grealtimes.png

I think this deserves attention and efforts.

Hello everyone and the creator offcource. I will try your system in the next 2-3 weeks. I will be posting my entrances and exits ok. Let me know if i am doing it right.

Regards,

msis125125

I've seen this method before, somwhere in my travels. It is nice to see someone trying to give it a run on here on FF. Thread doesn't seem to have much action yet, but give it time. May I suggest something to the creater? I am having trouble with the pictures in that I cannot enlarge them easily. I know that there are plenty of platforms better than MT4, but when you upload a pic using the this method, you can enlarge the chart very easily.... Had to use my browser to enlarge the other pics and it doesn't do well. I have included an example of the daily in this post. If you double click on my image you can enlarge it easily on most PC's. Anyways, I might also suggest that we look for re-entry methods and later, perhaps, refine our exit. As you can see in the chart we are in a good uptrend, then a small sideways period, a cross of the EMA's, and then of course, an entry at the first verticle. red line. As you can see, price lazily made it's way downward and crossed the EMA's before making a decided move down past previous support (red horizontal line) Upon breaking of support, this could is the second (leg) of our journey and of course the bigger move as is normal. This is an idea for re-entry. Other ideas could be to get back in on a bounce of either of the EMA's, or even an aggressive entry with very tight stoploss is the touch of the 18 EMA with a stoploss a few pips behind the 40 in an established trend. I might also add that there are many opportunities for an earlier entry. But that should be a different post. However, as noted above, ranging periods can really kill any method and is often times difficult to spot. Perhaps the creator of the thread could post a suggestion on how to avoid such spots? Good day everyone.

LL