Analysis and Trading based on Envelopes, Waves, Cycles

Hello Parisboy,
why the trendline of 45 deg here? any specific reason and how it will help in trading?
Thanks,
harish

Hello vishwamanava

Read this post and the attached documentation about Gann Angles

https://www.forexfactory.com/thread/...9#post13203329

DOW 1 mn

Hello Parisboy,
In most of your postings, I see you are using FLD for forecasting the price but somewhere you have mentioned it is not a reliable method. In your experience, when do you use FLD for forecasting the price and which is the most reliable forecasting tool? thanks again

DAX Momentum Lines 1987-2027

DAX Angles 1987-2027

vishwamanava;

look here :

https://www.forexfactory.com/showthr...6#post12956356

https://www.forexfactory.com/showthr...2#post12956462

https://www.forexfactory.com/showthr...6#post12956496

PS By construction I do not use "unreliable methods". Hence I have never written that FLD is an "unreliable method"

Patrick MIKULA

Section1: The Best Trendline Methods of Alan Andrews

Introduction

I am fortunate to have been involved with trading before computers completely took over technical analysis and I have read many trading books written between 1950 to 1980. There is a much greater discussion of trendline methods in these older books than there is in trading books of today. My first encounter with a reference to Alan Andrews was in the 1986 book, "Technical Analysis of the Futures Markets," by John Murphy. I have been researching Alan Andrews trendline methods ever since and present my findings here. In my book, Alan Andrews will be referred to simply as Andrews.

In my consulting work as a Commodity Trading Advisor(СТА) I encountered several people who attended the Andrews Action Reaction seminar. This provided me the opportunity to examine Andrews original material but more importantly, it allowed me to converse with traders who have used Andrews trendline methods for many years.

In his seminars, Andrews said his trendline methods were based on the work of Roger Babson. In the 1930's, Roger Babson was publicly credited with forecasting the crash of 1929 more accurately than any other person. The exact nature of what Roger Babson showed Andrews no one can know. My research leads me to believe Roger Babson gave Andrews the concept of financial action and reaction. Then Andrews developed his trendline methods based on this idea.

The methods used by Roger Babson and Andrews may have been based on the same theory of action reaction but the actual methods are very different. Roger Babson used a method which measured how far the price moved above or below a line drawn through the center of previous price swings. This allowed Babson to calculate the average distance above or below the center line that a price swing should move before it turns the other direction.

It is believed that Babson used this method to make a fortune in the markets by identifying when marketswere over extended either upward or downward. This is also believed to be the method he used in 1929 to give many public warnings that the stock market was greatly over extended and a large decline was coming. When the 1929 crash finally came, Babson was heralded as a genius.

The methods used by Andrews appear to be based on this sarne idea of the price moving around a center line but are different from the methods used by Babson. The Babson methods are for long term stock market and economic analysis, while the Andrews' methods are for short term trading.

The end result for Babson and Andrews was similar, because it is reported that Andrews also made a very large amount of money trading. The traders with whom I have talked, who attended the Andrews seminars, indicated that Andrews made well over a million dollars trading.

The biographical information on Andrews of interest from a traders perspective is rather meager. Andrews did not become involved with sharing his trendline methods and his ideas on trading until after he retired. I have not encountered any investors who dealt wi th Andrews for trading purposes before the mid 1960's. The documentation from his Action Reaction Course and his seminars is dated in the 1960's and 1970's. This 20 year period seems to be when Andrews became active as a financial educator and trader.

This book is written in two sections. The first section presents the material which can be directly attributed to Andrews. I refrained from inserting my opinions and ideas into the first section and included only Andrews' methods. In the greater body of Andrews' work, there are ideas and methods which were suggested by his students. Andrews encouraged his students to share their ideas. This material has been left out of the book because the methods suggested by Andrews' students are not the methods Andrews used to make a fortune in the markets.

The second section of thi s book deals with new trendline developments made at Austin Financial Group. In this way, the reader can separate clearly the original Andrews' ideas from the new ideas. After becoming а ТА, I was asked to develop a trading method for the Eurodollar futures, which I did. Since that time developing trading or prediction model s has become the largest part of my businessas а СТА.

In the second section ofthis book are five new ways to apply trendline methods.

There was a time when I thought computers would replace all the old trading methods. After years of watching advanced computer models come and go I no longer believe that.

After you read this book I hope you will agree that trendline methods, both old and new, still have great financial value to traders.

The computer is a powerful tool for doing repetitive work and time consuming tasks but nothing replaces simple methods which work and trading experience.

Research & Patience ?

Growing Parabolic Fractals

Well after all you taught me
Thank you

Hello Parisboy,
I am getting hang of your system and started reading from beginning, quite interesting.
How are you drawing the envelops in Tradingview using Centered moving average? what is the trick?
Thanks

Hello Parisboy,
I am trying to use Centered moving average on DJI, 1m on tradingview using your technique, but I see percentage instead of offset. Am I missing something here? Thanks

FLD Code for Tradingview from AP2762

https://www.forexfactory.com/thread/...4#post13116284

my script for Envelopes on Tradingview

https://www.forexfactory.com/thread/...0#post13064730

I had asked for one and you have shared two, Parisboy...thank you! As there is an offset of 16, how to place the trade based on the envelop? one method is the VTL, I know, but I am looking at price fluctuation above and below the average and when R2R ratio is favourable.

please show me an example of your Chart

Look at the "45°" Angle drawn fro the Top . It is a very good approximation of the DAX bearish Trend

Hence you can observe the potential variations of Speed and Acceleration of Price Action

Example : Price Action falls from 80 points from the Top at 5.12 to the Low at 8.03 (171 minutes)
.
Then follows a very steep inverse movement from 8.03 to 8.27 (24 minutes)

Hence the Descending Rate was 7 Times slower than the Ascending Rate of the bullish reversal

You can build (hand drawing) very simply an "Operative Gann Square" on your chart

here you observe :

- a 45° Descending Angle drawn from the Top (in red)
- a Gann "Square " (8 Time Units , 8 Price Units ) where a Price Unit = 3 Tradingview Price Intervals
- a (1x1) Descending Angle (1 Time Unit x 1 Price Unit) in dashed red

Hence you can apply the Gann Tools rules and the Gann Analysis rules within this "Square"

I am new to trading and learning. I bumped into your blog while searching for trendlines and started reading your system from Page 1. Lot to read and thank you for your help and support in my learning.