Analysis and Trading based on Envelopes, Waves, Cycles

Moving Averages : Granville's Rules (Selling)

4 signals for selling are as follows:

⑤ At the time the moving average goes sideways or downward after rising up, and then the stock price goes lower than the moving average,
⑥ The stock price goes higher than the uptrend moving average,
⑦ The stock price being under the downtrend moving average line rises toward the moving average and then again begins to fall without recording the gures over the moving average,
⑧ The stock price becomes far over the uptrend moving average.
There are so many examples of the above 8 signals. But you must be careful about the “wrong signals” when you solely depend upon these signals. The “wrong signals” mean the signals of buying and selling with no actual returns.

Just wanted to say, looking forward to reading the feedback and all these great posts. Been busy mostly today so couldn't go through them like I want to. But going to! Pretty soon.

In the meanwhile, thanks Parisboy, Swede, and Dave! Loving these materials PB

CAC 40 Monthly

BANK OF NEW YORK (BK) Monthly

Bullish

Centered Moving Averages 16 Months, 32 Months? 64 Months, 128 Months are bullish

So, its Sunday night and as the market opens we see a nice little spike up to the 50 area and price stopped right there. What should give us a clue as to direction,??? well, look left to the 15 min for some strong suggestions.....see the extension of the 128 and the Half Big Round Number.....great entry for the shorts to continue and paid 30 pips with no draw down...

Fuseb it is because tt shows the maximum potential amplitude of the on-going sinewave

GBPUSD 1 mn

GBPUSD 1 mn

FLD Cascade

GBPUSD 1 mn

Opened Short position

EDIT Closed at Breakeven Bad Trade

Quoting parisboy
{quote} 1,35170 +/- 26 at least first

1,34910 + 0,00260 = 1,35170 - 0,00026

Target between 1,35196 and 1,35144

How does this look?

I think Swede post 6825 is well worth a look
I always take a look at the Envelopes never does any harm and often a lot of good

Thank you. I haven't set up the envelope yet. Was just practicing the CMA drawings and thought of trying out a trade on the demo account.

Without checking higher TF not bad

notice the Sinewave around CMA 256

Yeah, it's amazing. The trade hit TP, btw. But the best part is that I didn't need to stress at all about how the trade was gonna go. Put in the TP and SL and whichever way the trade went, there was no "assumptions" and hence no stress.

Always without checking higher TF you have another option .

At this point You just need to check which scenario Price Action will follow

trader Charles B. Goodman in the 1940s and 1950s. called that 'doing hypothesis) "bathtub analysis"

Goodman Wave Theory (GWT, Goodman) was developed by trader Charles B. Goodman in the 1940s and 1950s. He used it very successfully in commodity futures and equities. GWT is derived from four simple and transparent concepts,e.

The axiom of 1-2-3,
the propagation principle,
the intersection principle,
and the 3-C principle.

These will also demonstrate how Goodman differs from the better-known Elliott.

Finally, I show the basic GWT trade setup, which you can begin studying and testing in the markets right away.

There are many other market wave theories. Elliott Wave Theory has been the most popular for decades. Closer to the Goodman Wave space, there are other wave theories based on the 1-2-3 concept. Appendix D offers resources if you wish to dig deeper.

The Axiom of 1-2-3

In Goodman Wave Theory, everything is a 1-2: 1) a swing in the primary direction, 2) a swing in the secondary direction, and 3) a second swing in the primary direction. The 1-2-3 is the building block of all markets. This is, of course, the basic market paradigm. The principles and rules of GWT tell us how these 1-2-3s combine at multiple price levels to form a price chart we see of any given market. Small 1-2-3s are said to propagate into larger 1-2-3s and are said to nest within the larger 1-2-3s.

The Ideal Matrix

A 1-2-3 is called a matrix. Let’s begin with a look at the ideal matrix, which is familiar to many traders as the 50 percent rule and measured move rule. The 50 percent rule states that prices will find support or resistance at the 50 percent retracement of a price swing. The logic is easy enough to understand. At the 50 percent point, all the buyers and sellers in the swing area.

Its not hard to envision the wave in effect if you train your mind to see them....and then use common sence about the nature of buying and selling. Today we have the same scenario as always as GBP heads a bit north in an overall south trend.....we have the channel in place and its easy to take a few scalps along the way as every level is challenged.....the trades shown are +14 +13 +3 +10....no drawdown of any significance, no losses, just 4 trades...

Trading cable you cannot be greedy...a 10 pip occillation trade is just fine by me when scalping....the +3 was simply because I held that one too long, missed 10 pips there...

not much to comment here