Chaos Trading System

Best thing on this is Robert Miner. His methodology is what I use. Basically you run a projection fib (for long grab the top of the wave and pull to the bottom) from wave say wave 4. Then look at the internal structure of wave 5 and find the minor wave 4 within that and do the same. The two fibs should create a zone at some point (most likely 161.8%). That's the point to watch for a turn, if it continues through it will probably go to the next fib confluence. I also use the absolute fibonacci to further zero in on the most likely turning point (). That video is representative of what I'm looking for on the chart. I depend on that more than the fib projections actually for setting take profits. Most likely you will get a wiseman on some time frame, and price will do a 180. Don't just trade on the basis of the zone. Look for divergence in the AO and most importantly price action (preferably a W1). You can find some illustrations of the fib projections in my posts on an earlier chaos thread. I made a couple of trades (non demo) right before the holidays (haven't done much since). They're shown in this chart, but I did no fib projections on those, just used the abfib technique. On a break above the yellow bollinger and red alligator line into a new fib set (price is blue), I went long. I stay as long as price closes above the lower bollinger line or until I reach a really strong barrier and take profit. You will note that the take profit was at the upper purple line on the last set. I then entered short, when it turned back through the first purple line with a take profit at the next purple line. Hopefully that helps some.

Hello Slight,

Nice charts ! Thank you very much.
I'm still studying and things are coming slowly together. This AO is really a pure jewel ! And BW's book #1 is really a gold mine.
During this intensive learning period, I'm focusing mainly on euro and cable. 30m, 5m, 1m. And I saw many trades that I took on demo account. I'm way positive.
I'm also looking at the D1, 8H, 4H. Now, I think the euro on the D1 is starting a W5 up. I'm placing an order to go [email protected] (triggered).
This entry might be a bit early... But the lower TF seem to line up for a long. We will see.
Please have a look to my chart and, please let me know what do you think. My new D1 bar opening is at 9am est.

All the best and good trading.

glad you are getting there.
Well I have something different on the EU.
1. Look at monthly - what you see is the end of a 3 at the last high and obviously some sort of wave 4 we are in now. Let's go to the weekly
2. Weekly - without being sure I would say that in the weekly you see the first leg down being a 3move wave a, the spike that touches the blue line upwards again, is wave b and we are now in a wave c of a wave 4. Let's look at the daily if this holds true.
3. daily - you see on the daily that wave a was a 3move down. then came b which was a clear 3 move up - so now we are seeing a 5 move down for wave c. This first wave of wave c has been finished and we are going into a wave 2 of wave c of wave 4 now. So I am waiting for a pullback and enter short again..

that makes sense?

Ohoh, we are in a totaly different page here...
Can you post some charts please.... ?

here you go ... the order is: monthly, weekly, daily
remember: when you are switching one timeframe lower, you are looking INTO the wave of the higher TF

Thx S.

So where do you place the W4 on the D1 ? and by consequence, the W5 ?
All the best

what do you mean? the numbers 2 and 3 on the daily are just an indication of where the market moves, it has nothing to do with where it will exactly be going.



Thanks taxgeek for your reply and the link, it helped a lot!

Slight,

See on my chart, where I place the W4 ?

So, on the D1 where will you place this wave 4 ?

I hope I'm clear...

"this w4" ... there is no such thing on my chart as "your w4" .. it's a totally different count. on your chart it looks like you just jumped into the daily chart and looked where the AO is the highest - but you forgot to consider where in the wavecount this daily chart acutally is. only by knowing that you know on which side of the AO to look for a peek or a zero crossing you can determine the actual count

Oh I understand what you mean !!!
I'll dig more in the direction you gave me.
Thank you very much.

I'm with you on this one. You have to start with the monthly and work down to know the true direction of the market.

Hi Slight,

Your post is always helpful. thanx.

asam

thx

Hello Slight,

Sorry to be so heavy... But the a,b,c you marked on your daily chart, did they correspond to the a,b,c of the weekly ?
Just trying to situate myself on this map, showing waves inside waves...

Thank you very much for all your help !

yes exactly. this is how you technically zoom into the wave (by switching to the next lower timeframe) and determine the wavestructure more exactly. then you go to the next and to the next until you have what you want.

So, now on the daily chart, we are looking inside the wave c happening on the weekly chart.
A wave c is usually a 5 waves sequence, right ?
what makes you placing the wave 1 where you placed it ?
Do you think the Wave 1 is over ?
If you look at the 4h, it seems to me that the 5 waves of the wave 1 are completed...
I'm posting here the 4h...
Thank you for all the comments.

exactly, wave 1 of wave c is over, which means a 1-2-3-4-5 of wave 1 of wave c is over (4h chart). the entire c can't be over yet, because obviously it didn't make a lower low than wave a, did it? plus it didnt show us the peek in the AO yet
does that answer your question?

So, now let's try to project a bit in the future, to see if my understanding is starting to gain some reliability

On the 4h, it seems we are in the a-b-c correction after the wave 5. When the wave c on the 4h will be finished, we can expect the prices to shoot up.
This will really end the W1 and do the wave 2 of c on the D1.
Then, we will look for a signal to trade short the wave 3 of c.

I'm not sure the fractal you choose for entry is the good entry point... If I'm right you will have to go through the wave 2 up. Also we might have a better entry price...

Does it sounds right ?

depends on how you look at it. on the 4h the AO has crossed the zero line already - only by one bar and very little though. So far I have been assuming that this was the actual wave 4 already and wave 5 has finished too. So I was thinking we are in a Wave 2 (a-b-c correction) already.
But you are right, this could be wrong and wave 4 is what we see right now. But since you can never be 100% sure, you just put in your order and then you'll see what happens

4h chart is attached

Ok, it seems that we agree on the wave count !
I'm happy. Now let see how it develop.
Thx Slight.