Analysis and Trading based on Envelopes, Waves, Cycles

Thanks Dave

a synthesis :

H'mmmm Lots of very familiar numbers there my friend

DAX 3 Months / 60 minutes

DAX 24 H / 1 minute

DAX 6 Months / 120 minutes

The methodology signals very clearly the different Support and Resistance Zones

As for now it means that the Uptrending Swings see their development limited by an Underlying Trend moderately bearish which let us clearly observe the monthly cycles at work

In David’s last video he shared his thoughts on there being an 18 year high soon in the NDX, which wouldn’t bottom until around beg- to mid-2021

Sixer

Dax closed Short position + 124 points

DH update discussing the DJI:

Sixer

Quoting Forest-Sea
Wondering a bit about the Circles of Conflict. Seems major when reading materials from TH Murrey site but seldom appearing on anything to do with forex. I think maybe xard777 did show them way back, and he seems well respected. Xcalibur wrote, "Circles of Conflict are great future zones of potential action." Perhaps this related more specifically to higher TFs. Curious about your thoughts, though. In the beginning I sense one should focus on -1,0,1 as long only (obviously) and +1,8,7 for shorts perhaps adding price entering at 3/8 with a target...
Forest-Sea

I am working with "Murrey's" methodology since 1998. I tried to read on the web ALL what was written on this methodology (or related to).

In 20 years I never found something relative to the Circles of Conflict used for Analysis and / or Trading.

I am the only guy I know who posts on all his Excel charts "Circles of Conflict"

it is an old habit - the real question is : is it useful in a way or another for analysis, for trading ?

it is mainly descriptive of Price Action after the fact

You can describe Circles of Conflict as "Hard Zones" "Energy Zones" which can be attractive or repulsive according to the polarization (that you can not forecast before)

Quoting Forest-Sea
Wondering a bit about the Circles of Conflict. Seems major when reading materials from TH Murrey site but seldom appearing on anything to do with forex. I think maybe xard777 did show them way back, and he seems well respected. Xcalibur wrote, "Circles of Conflict are great future zones of potential action." Perhaps this related more specifically to higher TFs. Curious about your thoughts, though. In the beginning I sense one should focus on -1,0,1 as long only (obviously) and +1,8,7 for shorts perhaps adding price entering at 3/8 with a target...

Visualization of Circles of Conflict

Quoting OAPDave
{quote} Parisboy, you are up there with the best of the best, so can I ask the question about the Murrey so called Start of the new Cycle ( October ?) is it real and important or just a marketing ploy

Dave I need to check in my archives what I have on the subject.

Anyway there is no logical relations between Murrey's birthday's date and Price Action . It is just pure megalomany of someone who ended up describing himself as the "new Gann" and even better than Gann

The division of Time in quarter is logical according to Gann methodology.

Basically the first research on the subject was linked with Commodities (Wheat, Soja, Cotton, Metals, etc) then the 4 Seasons influence (or not) then "Cycles"

Hence the same tools were used for industrial products and consequently average shares.

Experience showed me that you can use Gann tools with "success" (efficient operative results) :

- (Angles (Diagonal Lines),
- Circles of Conflict (Crossing of Horizontal and Vertical Lines)
- and MML's (Horizontal Gann Lines)

whatever your starting point is.

For example such tools work very well on the 30 DAX components even if Yahoo data begin most of the time 1st March 2000.

The Gann/Murrey system works also efficiently with "newborn" corporations for example Facebook , Twitter, Tesla etc

Quoting Forest-Sea
Wondering a bit about the Circles of Conflict. Seems major when reading materials from TH Murrey site but seldom appearing on anything to do with forex. I think maybe xard777 did show them way back, and he seems well respected. Xcalibur wrote, "Circles of Conflict are great future zones of potential action." Perhaps this related more specifically to higher TFs. Curious about your thoughts, though. In the beginning I sense one should focus on -1,0,1 as long only (obviously) and +1,8,7 for shorts perhaps adding price entering at 3/8 with a target...
Forest-Sea

hereunder you will find what Tim Kruzel wrote on the "Circles of Conflict"

Circles of Conflict

The circles of conflict are a by product of the properties of the horizontal MML's that divide price and vertical time lines (VTL's) that divide time. MML's represent points of support and resistance. VTL's represent reversal points. Put it all together and the result is the "circles of conflict".

Consider a square in time divided into eight price intervals and eight time intervals. The five circles of conflict are centered on the 2/8 th's, 4/8 th's, and the 6/8 th's MML's and the 2/8 th's, 4/8 th's, and 6/8 th's VTL's. Recall that prices spend 40% of their time between the 3/8 th's and 5/8 th's MML's.

Recall also that the 2/8 th's, 4/8 th's, and 6/8 th's MML's represent strong points of support and resistance.

If we can assume that the 2/8 th's, 4/8 th's, and 6/8 th's VTL's represent strong points of reversal, we can expect that in slow trendless markets that prices will be deflected around the circles of conflict.

In a fast up or down market prices will move through the circles quickly since the price momentum exists to penetrate support and resistance lines.

The circles of conflict are an example of the value of a standard reference frame (square in time) in divining market action. This reference frame and its associated geometry and rules can be applied to all price-time scales in all markets.