Linear regression TS

Nice LRC drawing Dezil...

One more thing I observe when drawing a LRC is the reaction of price to the hypotetical median line of the LRC, observe here in the DAX 30 min chart the swings the price makes on the boundries of the LRC I marked and the "mini swings" that makes at the median line of the channel...when you have both these signs you are sure you have drawn a good LRC and its BO measured moves (=your POEs) would be very accurate.

btw DAX is breaking the LRC, I've layered my sell limit orders.
there isn't an unique way to trade the LRC, here I decided not to enter at the BO of the LRC because it was near an historical bottom so the BO could have been violent, so I decided to enter from POE2...you always have to contextualize where you are trading and have the bigger picture in mind.

NJ is breaking a nicely clear hourly LRC...layered my sell limit orders.
Notice again the swings around the borders and the mini swings at median line; its BO is neat, no doubt where price is going to stall and where profit taking is going to take place.

NJ first sell order filled at POE2, DAX opened gapping up on its way toward POE2.

Nice surgical entry on AJ right at POE2, SL already moved to BE and I'm free riding it towards POE1.

Trade setup for next 1-2 weeks: on UC 1 hour chart price is breaking LRC from mid april major swing low. Set my measured move fib and pending order at POE2 around 1.28200.
Look at how many swings and miniswings we have here, these fat big LRCs are the safest and most profitable to trade, avoid LRCs which are too tight and with supertiny swings in them.

What if price will bounce up now from the lower band and some time after break lower band in a new place? Will you redraw all entry levels?

Nice question Dezil: in this case you can draw 2 fibs (which will give you POEa and POEb let's call them this way) and divide your normal entries on the 2 levels (which will be not to distant from each other, example instead of entering with .10 lots on POE2 you can enter with .05 lots on POE2a and .05 lots on POE2b).
Most of the times however a true BO of an important LRC is neat (see pictures in posts #22, #23, #25). I noticed dirty confused BO in too tight LRC which are not my 1st choice to trade.
I have a feeling that the first touch is the most important, as that is the point where big banks and funds algos take big positions (I mean if price is going to reverse from that point it means there was a pretty big volume of orders behind it) but I have to further research this thing.

Another setup from next week on AU where we had a nice neat break out of a well defined LRC (notice how many swings at borders and mini swings at median line of the channel), set my limit orders at POE2 3 4 and patiently waiting the market to come at me...

GU gapped up directly to my pending order at POE2, measured move from LRC BO should be completed, I like the fact now price is at superior border of the new LRC which should act as dynamic resistance, moreover we have a static resistance from previous lower high. Waiting for it to go little south to set this trade to BE.

Gold in daily chart approaching POE2...this is gonna take some time.

Short GU from POE2 closed at stop profit. I was at work otherwise I'd have manually close it near bottom of new ascending LRC and near POE1.

Short AJ from POE2 closed at BE.

Fractality of POEs. POEs act as static support or resistance, when you have 2 POE from 2 different LRC in the same level of price you can assume price will react strongly to that level. Notice at the red arrow fractality between bearish LRC POE1 and bullish LRC POE2.

GA nicely heading north, bought at POE1, set my stop profit and TP for half position, this is a nice bullish flag and price could go a lot higher so I let half position go targeting at least the highs of may.

Set my orders on EA, nice POEs fractality.

Missed the entry on POE1 here on EJ daily but I liked the price action (false BO of the LRC, suck bears in and then up again strongly back into bullish LRC) so entered at market, seems promising so far...like the BO of the short period bearish LRC.

If you want to increase your understanding of PA I really really really suggest you to look at Al Brooks videos:



If you have time and patience read his books, they're the best you can find.

I'm long UC based on PA around POE1, false BO of LRC, bears sucked in and price shoot back up finding support on POE1 twice...I'm targeting previous high, great risk to reward ratio trade over 4:1
I'm pretty sure about location of POE1, I just let past swings and mini swings to guide me when drawing a reliable LRC.

Went long AU at the pullback on POE1, saw a wedge in 1h chart, entered at its breakout, targeting POE2, R:R=1:7

detail of the wedge formation at POE1. Al Brooks explains in his books that wedges usually are followed by a change in trend.

Stopped out on AU, USD seems trending so I start to increment my positions on UC.

Didn't get filled for few points on DAX, however nice to see how price reacted once the measured move from LRC BO completed near POE2.