Analysis and Trading based on Envelopes, Waves, Cycles

closed Short position on DAX + 21 points

Octave = 0.003125 on a 15 minutes chart

Envelope 256 Time Unit amplitude is 2 x 0.003125 = 0.0625

Chart does not show a perfect Sinewave - but illustrates the idea

in this case Price Action follows more or less a Sinewave

this explains and shows visually why SRL (Support and Resistance Line) (4/8) properties are Major Support and Resistance / Center of Gravity (within the parameters)

In the first part of the chart you can find better to have an halved scaling where the present (6/8) SRL in red has also the property of being the new (4/8) SRL Center of Gravity within the halved parameters

That is the Sinewave which explains the Halving / Doubling of parameters methodology

As soon as you have determined the "correct" Octave (which fits to you) you just have to halve or double to stay tuned with the Price Action

When you are at the beginning of a new halved or doubled Octave my recommendation is to use both charts, the previous one and the new one because you are in a phase of transition

DAX Closed Short position at the contact of the Centered Moving Average 256 TU (brown) + 8 points

DOW closed Long Position + 20 points

DOW closed Long Position + 15 points

DOW all time 5th wave top? 26230