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A,B,C,D - 1,2,3,4 System

  • #1,121
  • Dec 8, 2008 10:25am Dec 8, 2008 10:25am
Quoting wltien
Hi Soya, thanks for sharing the charts!

For GJ, there is a Daily TL (yellow in colour) in my chart, which is lower than 4H TL (purple in colour). Which one we consider 1st?

Thanks!
Hi wltien, when taking a trade, use the trendline from the most recent AB wave. This point was mentioned by Dra in his first 2 posts.

Edit: I just checked, it is the 2nd post: "you will find and draw your latest A.B"

Hope this clarifies your doubt. Keep watching the charts, by experimenting and taking demo trades you will get a better feel of which trendlines are most effective.
  • #1,122
  • Dec 8, 2008 10:43am Dec 8, 2008 10:43am
Quoting soyabean
Hi wltien, when taking a trade, use the trendline from the most recent AB wave. This point was mentioned by Dra in his first 2 posts.

Edit: I just checked, it is the 2nd post: "you will find and draw your latest A.B"

Hope this clarifies your doubt. Keep watching the charts, by experimenting and taking demo trades you will get a better feel of which trendlines are most effective.
Thanks Soya!

Soya, can I say that Higher TF TL is for trend checking purposes, but trading is looking for latest AB wave?
  • #1,123
  • Dec 8, 2008 10:55am Dec 8, 2008 10:55am
Sharing on EURAUD, just for study purposes.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: ea daily 081209.gif Size: 27 KB
Click to Enlarge Name: ea 4h 081209.gif Size: 39 KB
  • #1,124
  • Edited 11:16am Dec 8, 2008 11:08am | Edited 11:16am
Quoting soyabean
Didn't take gbpjpy and nzdjpy. Instead, I took audcad again.
Hi Soyabean:

Thanks again for posting the charts.

Is the candle formation for this trade a morning star or bullish engulfing?

My interpretation is that it is a morning star.

Thanks for your reply.

Congratulations on this trade as well.

Even though I have not had a winning trade yet, I am having a lot of fun understanding this system.

I did not place any trades because I wanted to understand the reasoning behind them first before placing them.

EDIT
After further review, the reaso for the trade is the bullish engulfing candle. This is because there is no space between the second and third candle, correct?
  • #1,125
  • Dec 8, 2008 7:04pm Dec 8, 2008 7:04pm
Quoting forexgenius
Hi Soyabean:

Thanks again for posting the charts.

Is the candle formation for this trade a morning star or bullish engulfing?

My interpretation is that it is a morning star.

Thanks for your reply.

Congratulations on this trade as well.

Even though I have not had a winning trade yet, I am having a lot of fun understanding this system.

I did not place any trades because I wanted to understand the reasoning behind them first before placing them.

EDIT
After further review, the reaso for the trade is the bullish engulfing candle. This...
Hey FG, yep, it was a bullish engulfing pattern. I find engulfing patterns to be most commonly found on the charts. Tweezers and morning/evening stars are difficult to come by.
  • #1,126
  • Dec 8, 2008 7:08pm Dec 8, 2008 7:08pm
Quoting wltien
Thanks Soya!

Soya, can I say that Higher TF TL is for trend checking purposes, but trading is looking for latest AB wave?
It depends on your perspective of the charts. Higher TF trendlines should also be traded. If you are looking at a daily chart, then you can not possibly trade the lower timeframe trendlines.
  • #1,127
  • Dec 8, 2008 8:15pm Dec 8, 2008 8:15pm
Dra,

can you please tell me if what i'm seeing here is bearish engulfing?
thanks in advance.
Attached Image (click to enlarge)
Click to Enlarge Name: gu_4hr_12_08_08.gif Size: 20 KB
  • #1,128
  • Dec 8, 2008 8:26pm Dec 8, 2008 8:26pm
Quoting soyabean
Hey FG, yep, it was a bullish engulfing pattern. I find engulfing patterns to be most commonly found on the charts. Tweezers and morning/evening stars are difficult to come by.
Hi Soyabean:

This system is making sense to me now. This is a lot of fun.

Thanks for your response and the insight about what cadle formations are commonly found.

I look forward to placing my first valid DRA trade.

The one that resulted in a lost this morning was not a valid trade as everybody knew except for me. It was a great learning experience. I went back and brushed up on candle formations and I am ready to go.

As Hoedha normally writes, "Happy pipping everyone".
  • #1,129
  • Dec 8, 2008 8:32pm Dec 8, 2008 8:32pm
Quoting pkimnyc
Dra,

can you please tell me if what i'm seeing here is bearish engulfing?
thanks in advance.
Hey Pkimnyc:

Your chart sure shows a beautiful bearish engulfing pattern to me.

On my feed it does not show anything near a bearish engulfing pattern, but different brokers have different feeds, so, as I have been told many times, trade what you see.

Hoedha mentioned to me this morning to use small lots if you are not too sure about the trade. Again, on your chart, it is a bearish engulfing pattern.

I am sure that one of the veterans will let us know if what I write is accurate.
  • #1,130
  • Dec 8, 2008 8:42pm Dec 8, 2008 8:42pm
Quoting pkimnyc
Dra,

can you please tell me if what i'm seeing here is bearish engulfing?
thanks in advance.
Thats correct Pk, the body of the bear candle engulfs the body of the bull candle.
  • #1,131
  • Dec 8, 2008 8:44pm Dec 8, 2008 8:44pm
Quoting Dra
Thats correct Pk, the body of the bear candle engulfs the body of the bull candle.
Quoting forexgenius
Hey Pkimnyc:

Your chart sure shows a beautiful bearish engulfing pattern to me.

On my feed it does not show anything near a bearish engulfing pattern, but different brokers have different feeds, so, as I have been told many times, trade what you see.

Hoedha mentioned to me this morning to use small lots if you are not too sure about the trade. Again, on your chart, it is a bearish engulfing pattern.

I am sure that one of the veterans will let us know if what I write is accurate.
thank you so much guys.
  • #1,132
  • Dec 8, 2008 8:51pm Dec 8, 2008 8:51pm
Quoting forexgenius
Hey Pkimnyc:

Your chart sure shows a beautiful bearish engulfing pattern to me.

On my feed it does not show anything near a bearish engulfing pattern, but different brokers have different feeds, so, as I have been told many times, trade what you see.

Hoedha mentioned to me this morning to use small lots if you are not too sure about the trade. Again, on your chart, it is a bearish engulfing pattern.

I am sure that one of the veterans will let us know if what I write is accurate.
Thats misleading. Dont enter if you are not sure about a trade. In the event where you enter a faulty trade and win it will eventually get you in many more faulty trades that will end in loss. Pass on the trades you are not sure about, better entries will available if you are patient. There are times when its better to be out of the markets than in.
  • #1,133
  • Dec 9, 2008 1:06am Dec 9, 2008 1:06am
Wise words. Trading is about beating the odds. You must play all trades with the same conditions and aim to achieve positive expectancy to win in the long run.
  • #1,134
  • Dec 9, 2008 2:55am Dec 9, 2008 2:55am
Good day all, Here is a short I took like 16hrs ago on UJ. we are in sell zone , and Dra has posted on this kinda trades severally. Reason for trade 1. Sell Zone 2.Support turned into resistance(Powerful) 3. Fib Convergence 61.8/38.s (Most powerful fib convergence) Though price didnt bounce at TL, since the global trend is down and trend is ur friend they say, its a high probability trade.
Attached Image (click to enlarge)
Click to Enlarge Name: uj.gif Size: 17 KB
  • #1,135
  • Dec 9, 2008 4:25am Dec 9, 2008 4:25am
Very nice, Im in this too, and cadjpy, but market is moving slowly.
  • #1,136
  • Dec 9, 2008 5:17am Dec 9, 2008 5:17am
Quoting Dra
Thats misleading. Dont enter if you are not sure about a trade. In the event where you enter a faulty trade and win it will eventually get you in many more faulty trades that will end in loss. Pass on the trades you are not sure about, better entries will available if you are patient. There are times when its better to be out of the markets than in.
Hi Dra,
Thanks for the correction. That's something we need to learn from someone as experienced as you Dra. Again, thanks for the words.

Happy pipping..
  • #1,137
  • Dec 9, 2008 7:04am Dec 9, 2008 7:04am
Quoting Naijafx
Good day all, Here is a short I took like 16hrs ago on UJ. we are in sell zone , and Dra has posted on this kinda trades severally. Reason for trade 1. Sell Zone 2.Support turned into resistance(Powerful) 3. Fib Convergence 61.8/38.s (Most powerful fib convergence) Though price didnt bounce at TL, since the global trend is down and trend is ur friend they say, its a high probability trade.
Hi Mike:

Thanks for posting the chart and providing the detailed explanation.

I have printed it out and will be studying it for a while.

Is there any particular reason why the 61.8 and 38.2 fIb convergence is considered the most powerful?

Thanks for all the help.
  • #1,138
  • Dec 9, 2008 8:03am Dec 9, 2008 8:03am
Quote
Is there any particular reason why the 61.8 and 38.2 fIb convergence is considered the most powerful?

maybe from experience but u shd try to observe it too
  • #1,139
  • Dec 9, 2008 8:29am Dec 9, 2008 8:29am
Quoting Naijafx
maybe from experience but u shd try to observe it too
Yeah, Ive heard of that, read that in a book somewhere.
  • #1,140
  • Dec 9, 2008 8:37am Dec 9, 2008 8:37am
The yen pairs entries from monday are moving strongly now. GBPJPY has gone for over 200 pips, CADJPY has also gone for over 100 pips. It has been a great start and weekly target hit!
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