Mission Discovery: Think Outside The FX Box

I haven't added anything to the thread for a while. The method I am about to share is completely untested...I just wanted to pass it along to you folks out there. I got the idea a couple days ago.

Insert-Indicators-Bill Willaims- Fractals.

Insert-Indicators-Occilators- Relative Strength Index

So all you need for this method is fractals and RSI. Basically the idea is to wait for a fractal to form in the overbought or oversold areas and trade to the 50 mark, or if you're really ambitious trade until another fractal forms in the opposite RSI area. A very very simple idea, I give you world. Somebody looking for a system should try this out and post the results.

Thanks,

Scotty B

Hey Scotty...good to see you again...seems everyone left when you did.

I've been messing around for the last couple days with something I stumbled upon by accident. I have much more testing of the general concept ahead of me, but I have a rough working model to start with. I am calling the idea "Price Broadcasting." I am using everyday, simple charting tools to do this. The idea is that you can read past price like a travel itinerary about where price will be in the near future. I've been working on the 3 and 4 hour charts, and getting precise time and price points, days to weeks out about where price will be. The method is not foolproof, but I am focusing on understanding what works and what does not. I've come up with an itinerary for this weeks EURUSD travel through price land and I even made a totally sweet "forecast chart." This is all fun and games now; I hope it gets a little more serious over time.


This weeks EURUSD Travel Itinerary: (using Oanda's standard chart time)

Monday August 17th 6-6:30 @ 1.4200

Tuesday August 18th 12:30 @ 1.4189

Tuesday August 18th 18:00 @ 1.4010

Friday August 21st 11:00 @ 1.4205

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Sunday August 30th 11:00 @ 1.4000

Tuesday September 1st 17:00 @ 1.4210


Thanks for humoring me,

Scotty B

here

Hey Scotty....good to see you again. I was just browsing around the forums and saw your post from today. I had totally forgotten about this thread.

Yeah it got buried to the nth degree. Thanks for stopping by though.
I didn't want to further clutter the EU thread with my experimental trash

I put up my other two charts just for fun, but I thought that I should explain what in the world I am doing in those.
When I work on charts with the crosshair turned on while I'm drawing trend lines, I've often noticed that when the horizontal cross hair rolls over a significant pivot level that price often visits these very price/time points.
Basically, the trend line tells you when and the pivot tells you where. Obviously this is not perfect, but I do see some merit in the idea based on my humble observations of this. Yes we could draw a million and one trend lines to pivots in an effort to predict price movement, but I've been working off of what I consider to be more significant pivots and TLs. i.e. Pivots that significantly bounce price and outer TLs. I've been working mainly on the 3 and 4 hours charts with this.

I know that the idea in nothing new. I've seen guys do this with fibs, but not with good old pivots. After pulling a few of these trendlines, you end up with a series of price/time points out ahead of price and you can (for what its worth) have a rough estimate of near term price movement. I'll continue tinkering with the idea and share as I develop more. If anyone already does this sort of thing, by all means jump aboard!

I think of trendlines as basically trend spedometers. (price/time) If price continued in its general direction and maintained it's speed we would always know where price would be at a any point in the future by using the trend speed, but trends love to reverse and continually stall (often at old pivots). This is the foundation on the overall idea.

I'll attach a GU chart with the crosshair and trendline highlighting the type of TL/pivot cross I am talking about.

Thanks everybody,

Scotty

Here is an updated GU price map using pivot-trend line cross points. I'm still trying to work out which TLs and pivots work the best. I've been sticking to the major TL's and strong pivots.

Since I started this thread I don't feel bad about cluttering it with random things. Here is a small long setup I am watching in EURUSD using volume and a pivot.

Scotty B

Where can I find that volume chart????
I can not really see it. kind of blury. Where can I find it?

It's through Market Delta

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Cindy, I'm curious to know how you created the diamond formations in your chart.

She's just using the Gann Grid, found in MT4. You really don't have to mess with the grid to get the effect though. Just open a fib retracement tool and put in 0,.5,1,1.5,2,2.5,3,3.5,4..Ect, as your levels. This way you're not wasting your time with placing lines at the diagonal intersection points.

There are a lot of things you could do with this price peculiarity. You'll notice that often times the 'grid levels,' as it were, lose their effect after a while. One thing you could do to keep things more current is only watch these moves in price up to the 2-3 range, then move your spacers to more current price action.

I just have to mention to those of you going through this thread, that I started it waaaayy back in the day. You'll notice some of my 'findings' are quite humerous. The only things worth really paying any thought to are the 'japanese fan,' and the grid idea which I just responded to, both of which could be boiled down to price action.

If you boiled it down any further you could say that where price closes on most time frames is often highly indicative of where price will go next, especially if it can close past the high or low of the last candle or bar.

Just another tidbit to add to your price action repitoure. It works good as a trade filter.

[quote=Scotty B;3284532]She's just using the Gann Grid, found in MT4. You really don't have to mess with the grid to get the effect though. Just open a fib retracement tool and put in 0,.5,1,1.5,2,2.5,3,3.5,4..Ect, as your levels. This way you're not wasting your time with placing lines at the diagonal intersection points./quote]

If possible, would you please post a chart illustrating this?