Analysis and Trading based on Envelopes, Waves, Cycles

"Construction of such an Envelope is always the starting point for observational cyclic analysis"

Jim Hurst- Profit Magic - page 37

Hello Parisboy,

Still learning your trading:

Hello limprobable

I do not use Harmonics Patterns for trading

I just wanted to show for those who did how you can use it to classify, and hierarchize in the same degree, order:

- Harmonic Patterns
- Waves
- Cycles
- M and W patterns

which are de facto the same things

When DOW Price Action will break the green Ascending Valid Trend Line (VTL) 40° this will generate an Action Signal to consider a Short position

Hello Parisboy,

This is what i meaning. Could you say if you had take this false break and explain please. Cause i see a signal for sell, all envelope are down when price break the diagonal. And then.... bim on the open



green pips,

Amicalement

Could be ! Honestly I do not know

I use this methodology in a discretionary way.

No method can avoid "false break"

Strategically I do not trade the CAC 40 because " volatility" = amplitude of the Envelopes is structurally in average half of those of the DAX

All 3 Envelopes were trending UP

late entry

Stop Loss slightly under the last Low

Long Position Sold +38 points

checking the CAC 40 because of you all 3 Envelopes were UP

late entry

Stop Loss slightly under the Last Low

Long Position sold + 12 points

Thank you very much limprobable

Your welcome

Long position closed (2 Lots) + 42 points

Short position closed + 17 points

closed Short position + 23 points

entry after Price Action has broken the Lower Limit of the Enveloppe 256 Time Unit (brown)

closed Long Position + 12 points

taken to benefit of the re-entry of Price Action within the Envelope 256 TU (brown)

sold on touching (visually estimated ) of the Lower Limit of the Envelope 32 TU (blue)

Stop Loss slightly under the Last Low

Entry when Price Action broke the Centered Moving Average 128 TU (ocre)

This is a strong signal that the trend is UP ( this could have been a false impulse ) - but Trend was UP (Enveloppes 256 TU and 32 TU were Up )

Maximum possible gain = parameter used to build the Enveloppe 128 TU = 1//2 Amplitude of the Envelope 128

Orange squares = successive trailing stops

Red arrow : maximum drawdown

Green arrow : Maximum possible gain 1 , Upper limit of Envelope 128 TU

this target was reached almost to 100 % - it is why I closed my Long position

Maximum gain possible 2 is the Upper limit of Enveloppe 256 TU

to attain this, it is possible to invest 2 lots and sell one (the half of the position) if/when target 1 (Upper limit of the Envelope 128 TU) is reached

Obviously I could have had a loss or a small gain

Parisboy, is your angle indicator a custom one or it can be bought from somewhere? It is super cool...

MoneyZilla it is a built in option in TradingView