Introducing Russell Waves - beyond Fibonacci and Elliot.

HI All,
Another successful trade today GBPUSD M15. A bit late getting in though, but entered when price went above the two small double tops. As I was going out, I set TP just below W2b. Noting how strongly it closed above W3a I would have moved my TP higher to W2b or above.

I notice that yesterday's projection also hit the same levels as today. I would like to know if price closes past e.g. W3a, will it go to W3b i.e. what is the next number in the sequence?

thanks for the post blott Nice trades indeed. Can you tell me where and how you project your levels from? Hard to see. Your volume analysis of the first trade is spot on.

I use the Asia range (green area at start of each day) and if price does a fake-out first, I move the end of the fib up/down to include that in the projection; is that what you meant by where I project levels from? By doing that, I find that W2b moves a bit further away and gives me a few extra pips TP. In the chart above, if you look closely, you can just see a red diagonal dashed line of the fib high/low.

After price goes up through W3a and is supported at that level, what is the next target..... is it W3b?

It usually hits 2b/4a then manipulates through to GM4a as the extreme before it needs rebalancing. Then an ideal trend should retrace to the beginning of wave 3 (3a) before going through to 3b. I say usually because there can be a longer accumulation around 2b which acts as the rebalancing. On volatile days it can just go straight through to 3b/5a due to the extremity of volume.

Also it looks like you are looking at a day cycle so the targets can be bigger, in this case it may go straight through to 3b. When I refer to the weekly accum phase I mean the first 8 hours of the week as your high low projection.

Interestingly, and I am planning to go into this deeper, TDI is oversold at the end of wave 2 (2b). So I would expect either a pause here or a correction back to 3a.

the4thOctave I have looked at some of your videos very nice. I really like this concept but could you give a brief description of the order of the waves hitting the different levels for an up and a down trade. This would be very nice to have for a written out reference.

Thank you.

Am I correct in thinking that if price closes above e.g. W3a, with good volume, then it is likely to progress on to W3b. And if price closes likewise above w4a then it will progress to W4b....allowing for any pullbacks on the way......etc. etc.?

I concur. Such a 'cheat sheet' would be useful to have at hand, instead of my fallible memory

Mike

sorry Forexholy, only seeing this now. Haven't been trading much of late and didn't receive a notification of your post in my email. I'm working on a video which should be ready in the next day or two and I will go through that. I thought I had made it pretty clear in previous posts but you aren't the only one asking. Trade today was taken using TDI as the wave guide which is what the video will be about mainly.

GBP/JPY 15min. Took the trade with initial TP at 2b which is the end of wave 2. But seeing extreme volume coming in at 3a I took my profits. Nice 75 pips but as you can see it did end up going through the 2b. Will see if I can catch another wave from 3a to 3b.



A great primer on TDI.

Thanks !

This is the best template I have developed in 8 years from different boards on forexfactory. The Center of Gravity indicator is way more powerful than the TDI indicator.

thanks Forexholy, can you give me more info on that?

Hopefully this 'cheat sheet' is easy to read. Colour coded to makes more sense. So 'a' is the beginning of a wave and 'b' is the end. Then it should naturally retrace back to the beginning of the next wave. The zigzag shows this to the left, green vertical line being swing up or down and the red diagonal line being the correction to the beginning of the wave.



As you can see we have a pretty ideal example this week. If wave 3 completes it should go through to 3b and manipulate past to 5a before either accumulating or correcting back to around 4a.

As you can see from picture above the Center of Gravity indicator shows which way price is moving in the 1 Min time frame. if price is going up, it will be pointing up. If price is going down, it will be pointing down. If price is in consolidation or ranging. The lines will be pretty much horizontal. The board I found this on the guy trades it on the 4HR time frame and from what he explained. From what he explained he basically trades from red lines down and from green lines up. Price bounces in-between these lines. Price rarely will go out side of theses lines. Out of probably 100 times I've seen price go outside of these lines maybe 3 to 4 times. I have found when trading in the 1 and 5 min time frames that whatever direction the lines are pointing in, that is the direction price will be moving. Also using my strength and volume indicators this helps with the speed of the price movement and also lets you see if price will go through a level or maybe reverse if there is not enough strength and volume.

The dots you see on the template are called ATRTrailstops I found these on another board these work similar to support and resistance but more powerful.

Forgot to mention I also use Supply and demand zones.

Here are my files

Here are the rest

I guess it would help if I put the template with the indicators!

Also another aspect of the Center of Gravity lines is when they start to squeeze tighter it seems to identify a run in price action.

I should say also understanding price action as far as higher highs and lower lows will help tremendously when trading in-between these bands.