*******************
I'd rather make money than be right. 
Cable Update (GBPUSD)
- #246,781
- Aug 18, 2010 2:54pm Aug 18, 2010 2:54pm
- | Joined May 2009 | Status: Focus + Patience = Pip$ | 1,513 Posts
- #246,782
- Aug 18, 2010 2:55pm Aug 18, 2010 2:55pm
- Joined Apr 2007 | Status: HARD SHYT SCUBA TRADER | 20,886 Posts
You think its going to happen soon
If you would like to explain what a compression pattern is, I would realy apriciate it
when price goes into a tight range as we have seen from 1.5620 to 1.5600 since about 2 hours back we are in a sideways channel . The moving average ribbon that is shown compresses. See Docs charts on the 5 min he posted earlier
Then in a later session when volume comes in ( london for example) something will happen for a trend to form .. the way the movign averages move away formn each will determine this trend . They could all cross over each other as shown in docs 15 min , indicating a new trend down.... or if they are in a bull stack in the channel and price move out of the top of the channel , may widen away from each other.
Compression / channels are when price is resting ... from rest comes energy
I will be watching 2 levels in London 1.5570 and 1.5625 ... break either way will give 1.5700 / 1.5730 or move down to 1.5500
Blogging daily now at www.volume.zone
- #246,783
- Aug 18, 2010 2:57pm Aug 18, 2010 2:57pm
- Joined Mar 2007 | Status: 'sleeping in a dumpster' | 2,151 Posts
You think its going to happen soon
If you would like to explain what a compression pattern is, I would realy apriciate it
Any time a series of moving averages converge into a tight
pattern there is often an explosive release that follows. The
magnitude of the move is relative to the size of the tf.
You can read through my recent and past posts for theory and
explanations even back to Nov - Dec '09 and even beyond.
I find EMAs to be more ideal over other MAs types in forming
these tight patterns with more reactivity to price action.
Any series will work if spread evenly over a large period range.
I use (6), 18, 36, 54, 72, 90, 108, 126, 144. The dotted
200 is simply a well respected reference line for S/R.
Dr. D.
- #246,786
- Aug 18, 2010 3:04pm Aug 18, 2010 3:04pm
- Joined Apr 2007 | Status: HARD SHYT SCUBA TRADER | 20,886 Posts
flight to safety I'd say rather than weaken USD
USD will get stronger as you said and stocks weaken
GULF war ..1990 to 1991 .. dip in dj. Though i had worng chart when I first pulled this up . Was dj really only 2800 back in 1991 ? lol
Blogging daily now at www.volume.zone
- #246,788
- Aug 18, 2010 3:20pm Aug 18, 2010 3:20pm
- Joined Jan 2008 | Status: Pipaholics make better lovers ;) | 1,002 Posts
- #246,792
- Aug 18, 2010 3:25pm Aug 18, 2010 3:25pm
- Joined Mar 2007 | Status: 'sleeping in a dumpster' | 2,151 Posts
You think its going to happen soon
If you would like to explain what a compression pattern is, I would realy apriciate it
occur. There can be external triggers like news events
that initiate any move whether there is a compression
pattern present or not. However, I believe compression
pattern carry their own internal energy and do not require
an outside trigger. When coupled with news the timing
is optimized and the magnitude of the move is enhanced.
So whenever the pressure builds sufficiently relative to
the tf a release inevitably will occur. There are sec charts
that form into these patterns and release multiple times
per hour but have hardly any impact on the overall trend
until they couple their energies with higher tf. The size
of a compression - release - separation (CRS) is also relative
to the tf.
Here's a series of charts 1m, 5m and 15m that show the
patterns in different stages. The 1m formed and released
earlier producing a 20 pip (and counting) move which in
turn has caused the 5m to more fully close and 15m to draw
further together. I'd like to see the price stay in a range
keeping the 5m and 15m in tight patterns at least until the
Asian session when more volume can trigger their release.
It's all theory awaiting some discovery.
Dr. D.
- #246,793
- Aug 18, 2010 3:27pm Aug 18, 2010 3:27pm
- | Joined May 2009 | Status: Focus + Patience = Pip$ | 1,513 Posts
Any series will work if spread evenly over a large period range.
I use (6), 18, 36, 54, 72, 90, 108, 126, 144. The dotted
200 is simply a well respected reference line for S/R.
Dr. D.
*******************
I'd rather make money than be right.
- #246,796
- Aug 18, 2010 3:43pm Aug 18, 2010 3:43pm
- Joined Mar 2007 | Status: 'sleeping in a dumpster' | 2,151 Posts
- #246,797
- Aug 18, 2010 3:50pm Aug 18, 2010 3:50pm
- Joined Mar 2007 | Status: 'sleeping in a dumpster' | 2,151 Posts
I like the fib numbers, 8, 13, 21, 34, 55,89,144,then the 200, 550 and 610.
From one grandparent to another. lol
Dr. D.
- #246,798
- Aug 18, 2010 4:14pm Aug 18, 2010 4:14pm
- Joined Mar 2007 | Status: 'sleeping in a dumpster' | 2,151 Posts
- #246,800
- Aug 18, 2010 4:16pm Aug 18, 2010 4:16pm
- Joined Jan 2008 | Status: Pipaholics make better lovers ;) | 1,002 Posts
