DAX 1 mn
Stop Loss moved Lower at the level of the Last Top
Stop Loss moved Lower at the level of the Last Top
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4
Analysis and Trading based on Envelopes, Waves, Cycles
- #7,021
- Edited Feb 12, 2022 5:48am Feb 11, 2022 1:54pm | Edited Feb 12, 2022 5:48am
- Joined Oct 2017 | Status: Trader | 12,472 Posts
- #7,023
- Edited Feb 12, 2022 6:12am Feb 11, 2022 2:43pm | Edited Feb 12, 2022 6:12am
- Joined Oct 2017 | Status: Trader | 12,472 Posts
DAX 1 mn Understanding the Downtrend Move
a) Lower Limit of the Envelope 256 (brown) plays a role of Resistance as Price Action has not yer reintegrated the Envelope 256
b) Lower Limit of Envelope 128(ocre) is now UNDER the Lower Limit of Envelope 128
c) Upper Limit of Envelope 32 (blue) tends to merge with the Lower Limit of Envelope 256
all these elements are the sign of a strong Downtrend, at least for now
Downtrend Angle is now (- 37 °) , very close of Gann's favourite Angle (- 45°)
a) Lower Limit of the Envelope 256 (brown) plays a role of Resistance as Price Action has not yer reintegrated the Envelope 256
b) Lower Limit of Envelope 128(ocre) is now UNDER the Lower Limit of Envelope 128
c) Upper Limit of Envelope 32 (blue) tends to merge with the Lower Limit of Envelope 256
all these elements are the sign of a strong Downtrend, at least for now
Downtrend Angle is now (- 37 °) , very close of Gann's favourite Angle (- 45°)
- #7,025
- Edited Feb 12, 2022 5:49am Feb 11, 2022 3:07pm | Edited Feb 12, 2022 5:49am
- Joined Oct 2017 | Status: Trader | 12,472 Posts
- #7,028
- Feb 12, 2022 4:23am Feb 12, 2022 4:23am
- Joined Jan 2015 | Status: Trader | 5,146 Posts
@MoeinYzz....further to our discussion yesterday, this is how I played Cable today.... The first major impulse wave of 36 pips on the 1 min chart is where i put the grid......I was already looking for longs as the 5cma was strongly pointing north. I caught the first long at the first arrow and got out a bit soon with 15 pips....price stopped where?.....just above 1.36000 but also at the 1 x 4 and failed or started to range at that point so I was starting to think perhaps a retrace from the London session. Took a small scalp short for 10 and waited....
Rewards for Hard Work are possible
You have one hell of a Tool Box at your disposal now
Well done
- #7,029
- Edited 6:18am Feb 12, 2022 5:59am | Edited 6:18am
- Joined Oct 2017 | Status: Trader | 12,472 Posts
COMPARING 2 DOWNTRENDS : DAX1 mn AND GPBUSD 1 mn
DAX 1 mn Understanding the Downtrend Move
a) Lower Limit of the Envelope 256 (brown) plays a role of Resistance as Price Action has not yer reintegrated the Envelope 256
b) Lower Limit of Envelope 128(ocre) is now UNDER the Lower Limit of Envelope 128
c) Upper Limit of Envelope 32 (blue) tends to merge with the Lower Limit of Envelope 256
all these elements are the sign of a strong Downtrend, at least for now
Downtrend Angle is now (- 37 °) , very close of Gann's favourite Angle (- 45°)
GBPUSD 1 mn Understanding the Downtrend Move
a) Lower Limit of the Envelope 256 (brown) plays a role of Support for Price Action in its Downtrend
b) Lower Limit of Envelope 128(ocre) is just now UNDER the Lower Limit of Envelope 256 (brown) building a sronger Zone of Resistance between both Limits
c)Centered Moving Average 32 (blue) tends to merge with the Lower Limit of Envelope 256 (brown)
d) Centered Moving Average 256 (brown) Extension acts as Resistance for the Counter-(Down)trend Rally as well as Centered Moving Average 128 (ocre) offsetted 16 Time Units backon the Envelopes Chart
all these elements are the sign of a strong Downtrend, at least for now
Downtrend Angle is now (- 20 °)
DAX 1 mn Understanding the Downtrend Move
a) Lower Limit of the Envelope 256 (brown) plays a role of Resistance as Price Action has not yer reintegrated the Envelope 256
b) Lower Limit of Envelope 128(ocre) is now UNDER the Lower Limit of Envelope 128
c) Upper Limit of Envelope 32 (blue) tends to merge with the Lower Limit of Envelope 256
all these elements are the sign of a strong Downtrend, at least for now
Downtrend Angle is now (- 37 °) , very close of Gann's favourite Angle (- 45°)
GBPUSD 1 mn Understanding the Downtrend Move
a) Lower Limit of the Envelope 256 (brown) plays a role of Support for Price Action in its Downtrend
b) Lower Limit of Envelope 128(ocre) is just now UNDER the Lower Limit of Envelope 256 (brown) building a sronger Zone of Resistance between both Limits
c)Centered Moving Average 32 (blue) tends to merge with the Lower Limit of Envelope 256 (brown)
d) Centered Moving Average 256 (brown) Extension acts as Resistance for the Counter-(Down)trend Rally as well as Centered Moving Average 128 (ocre) offsetted 16 Time Units backon the Envelopes Chart
all these elements are the sign of a strong Downtrend, at least for now
Downtrend Angle is now (- 20 °)
- #7,030
- Feb 12, 2022 6:31am Feb 12, 2022 6:31am
- Joined Oct 2017 | Status: Trader | 12,472 Posts
Hello everyone! I have been reading through this forum for the past week and have been enjoying learning all this new information. There is a lot to learn since there are so many different aspects. I am wondering if there is any recommended reading material to learn how to combine all of the tools parisboy has laid out? For example, how would I combine FLD's, CMA's, and the envelopes to make a trade? Maybe this question has been answered already but any help would be appreciated! thanks
Hereunder you will find a Good Advice from Trader / FF poster Crucial Point :
Trade Only With The Trend
This is my number 1 and golden rule. The most important rule of my strategy and the backbone of my trading success: Trade only with the trend. It is unacceptable to break this no.1 rule. If I can't stick to this one important rule, then I am no different to the amateur/mediocre trader.
This is the fundamental rule of all; Trade only with the trend. If I can't execute one simple rule, then I am not a professional. It is that simple; Trade only with the trend, nothing more. People lose money because they don't follow this rule, period.
Explanation: :nerd:
Do not overlook the most important lesson here in trading. And here is the lesson in bold:
"How can you become a professional trader if you cannot execute one basic/simple rule consistently?"
Please, do yourself a favor... first learn to walk before you try to run.
Success is built upon small steps of achievement. Learn to achieve one task first, then another, then another, then another... and sooner you will meet your success. You cannot create a sentences or write words if you don't know your alphabet. It will be very difficult and most likely be unsuccessful without knowing your alphabet.
The alphabets are the basics... Trading with the trend are the basics... The difference between a Professional and an Amateur is that a Professional have mastered the basics. How far do you think you will go without mastering the basics?
- #7,031
- Edited 8:50am Feb 12, 2022 6:37am | Edited 8:50am
- Joined Oct 2017 | Status: Trader | 12,472 Posts
- #7,032
- Feb 12, 2022 6:52am Feb 12, 2022 6:52am
- Joined Oct 2017 | Status: Trader | 12,472 Posts
Crucial Point on Curve-fitting the Moving Averages 
So far, different people use different numbers for the Moving Averages. I found out that people will tend to curve-fit Moving Averages. There was actually no solid reason as to why such value was used.
Explanation: :nerd:
People either forget or don't understand how Moving Averages are calculated. If you understand it, then you won't be curve-fitting a moving average that looks beautiful to you.
The number used in a Moving Average is the number of candlestick bars that was calculated. Example: 60 (MA) is the representation of 60 candlesticks that was calculated.
Simple enough, but here's the problem... On an hourly chart, people would use 50, 60, 100 (MAs) and other values. On a 5 min chart, people would use 15, 50, 100 and other values. They use these numbers because they look nice on the graph they are looking at.
Here is the logic:
There are 24 hours in a day... so you should be averaging the 24 hours to get some consistency (using 24MA). You should be using 24MA (in an hourly chart), yet people would use 30 or 40 MA. Why would you want to be averaging 30hrs or 40hrs?
So here are the MA numbers on an hourly chart 24MA (1day), 48MA (2day), 72MA (3day)... it is a multiple of 24.
For a 15 min chart it is a multiple of 4 (because there are 4 15mins within an hour) = 4, 8 , 12, 16, 20, 24, 36, 40,.... 80, 120, 160, 200, 360, 400, etc.
For a 5 min chart it is a multiple of 12 (because there a 12 5mins within an hour) = 12, 24, 36, 48,.... 120, 240, 360, 480, etc.
For 1 min chart, it is a multiple of 60 or a number that can be divided by 60 evenly = 1, 2, 3, 4, 5, 6, 10, 15, 20, 30, 60. Multiple of 60 = 60, 120, 180, 240, 300, 360, 420, etc.
The rule is a number that can be divided by the hour evenly (or divisible by the number of candlestick within the hour evenly)
Why hourly?... because the world's clock is synchronized hourly
So far, different people use different numbers for the Moving Averages. I found out that people will tend to curve-fit Moving Averages. There was actually no solid reason as to why such value was used.
Explanation: :nerd:
People either forget or don't understand how Moving Averages are calculated. If you understand it, then you won't be curve-fitting a moving average that looks beautiful to you.
The number used in a Moving Average is the number of candlestick bars that was calculated. Example: 60 (MA) is the representation of 60 candlesticks that was calculated.
Simple enough, but here's the problem... On an hourly chart, people would use 50, 60, 100 (MAs) and other values. On a 5 min chart, people would use 15, 50, 100 and other values. They use these numbers because they look nice on the graph they are looking at.
Here is the logic:
There are 24 hours in a day... so you should be averaging the 24 hours to get some consistency (using 24MA). You should be using 24MA (in an hourly chart), yet people would use 30 or 40 MA. Why would you want to be averaging 30hrs or 40hrs?
So here are the MA numbers on an hourly chart 24MA (1day), 48MA (2day), 72MA (3day)... it is a multiple of 24.
For a 15 min chart it is a multiple of 4 (because there are 4 15mins within an hour) = 4, 8 , 12, 16, 20, 24, 36, 40,.... 80, 120, 160, 200, 360, 400, etc.
For a 5 min chart it is a multiple of 12 (because there a 12 5mins within an hour) = 12, 24, 36, 48,.... 120, 240, 360, 480, etc.
For 1 min chart, it is a multiple of 60 or a number that can be divided by 60 evenly = 1, 2, 3, 4, 5, 6, 10, 15, 20, 30, 60. Multiple of 60 = 60, 120, 180, 240, 300, 360, 420, etc.
The rule is a number that can be divided by the hour evenly (or divisible by the number of candlestick within the hour evenly)Why hourly?... because the world's clock is synchronized hourly
- #7,034
- Edited 8:35am Feb 12, 2022 8:17am | Edited 8:35am
- Joined Oct 2017 | Status: Trader | 12,472 Posts
- #7,037
- Feb 12, 2022 8:50am Feb 12, 2022 8:50am
- Joined Oct 2020 | Status: Trader | 1,707 Posts
{quote} helioss you should better read the thread. It comes from Gann "Squaring Time and Price" hence we divide ALL Time and Price intervals by 8. It constitutes the"Gann Octave" Just do it and compare the results and the informations you get.
I'm a rookie but IMHO it's more correct using correct MA length based on TF to analyze as correctly write in your post 7032
- #7,038
- Feb 12, 2022 8:53am Feb 12, 2022 8:53am
- Joined Oct 2020 | Status: Trader | 1,707 Posts
On 4H GBPUSD: 32 (weekly) 128 (monthly) 256 ( 2 months).....works so fine
- #7,039
- Edited 9:13am Feb 12, 2022 8:57am | Edited 9:13am
- Joined Oct 2017 | Status: Trader | 12,472 Posts
{quote} But it contrasting with your nice post about "Crucial Point on Curve-fitting the Moving Averages " I'm a rookie but IMHO it's more correct using correct MA length based on TF to analyze as correctly write in your post 7032
a) Hurst / Millard / Tillman methodology is based on Centered Moving Averages
b) I have sometimes different opinions that those of Crucial Points
