Lillian my dear friend, this is the answer to your question and the way I look at the market, and as you know I am always available you can call me or come by instead of emails.
In a perfect trade. the market does A, B, C, D, the area from C to D is the most important area to focus on, because it gives us a clue for the next move, The C, D could be one swing, or more depends on C position, ( .382,.50, .618 ,.786).
If we retrace to .38, .50, .618 the target will be 1.618
If we retrace to .786 the target will be 1.27
The deeper the retracement to C the longer it will take to reach the D. If the market retrace to C .786 it will take longer to reach D 1.27, and the same apply to (.382, .50 and .618) if we retrace to C .382 only we will reach D at no time ( depend on the time frame ), C =.50 will take a little longer to D, same for .618.
The focus should be on the area from C to D as I said, If we made a C (low or high) so we should make a D extension (low or high), if we don't reach a D high or low) we should be careful and re-analyze the market to find out if we are at resistance or support point, going for a deeper retracement or the trend has came to an end. It is very important to find out with this in mind, in an up or down trend the area of 1.27 is very important, it is the first line of defense, if the market goes above A from C and stops at 1.27 then come down under the A bearish, we are going for a deeper retracemnt or retest of C, if the market continue above 1.27 watch the area of 1.414 the second line of defense the market will stop there, then we have to watch our D ext, did we reach there yet or no, now keep in mind smaller time frames swings will fulfill faster than larger time frames and you have to watch for retracemnt too.
Now if you trading the 15M, 30M or hourly charts, you should focus on your chart swing and the D ext of each time frame, one the D ext reach on the time frame you trade, the market will retrace, to make a new A B C D or breach it to go to the opposite direction and create a head and shoulder to make you aware that this move has ended. Now Keep this in mind all the time smaller time frames moves within head and shoulder all the time if you can identify that in your small time frame , you have nothing to worry about, plus you have to watch the gartley with A B C D retracement.
To have a clear idea of this, you should be analyzing from Monthly, Weekly, Daily, with all information plotted into 8H, 4H and 1H for entry points and swing directions.
Lill you Know I always trade Gbp/Usd and I know every area of support and resistance about it, the reason I am not trading it much now because it is in consolidating range. Pass by and we can talk more.
This is what I mean by XYZ
In a perfect trade. the market does A, B, C, D, the area from C to D is the most important area to focus on, because it gives us a clue for the next move, The C, D could be one swing, or more depends on C position, ( .382,.50, .618 ,.786).
If we retrace to .38, .50, .618 the target will be 1.618
If we retrace to .786 the target will be 1.27
The deeper the retracement to C the longer it will take to reach the D. If the market retrace to C .786 it will take longer to reach D 1.27, and the same apply to (.382, .50 and .618) if we retrace to C .382 only we will reach D at no time ( depend on the time frame ), C =.50 will take a little longer to D, same for .618.
The focus should be on the area from C to D as I said, If we made a C (low or high) so we should make a D extension (low or high), if we don't reach a D high or low) we should be careful and re-analyze the market to find out if we are at resistance or support point, going for a deeper retracement or the trend has came to an end. It is very important to find out with this in mind, in an up or down trend the area of 1.27 is very important, it is the first line of defense, if the market goes above A from C and stops at 1.27 then come down under the A bearish, we are going for a deeper retracemnt or retest of C, if the market continue above 1.27 watch the area of 1.414 the second line of defense the market will stop there, then we have to watch our D ext, did we reach there yet or no, now keep in mind smaller time frames swings will fulfill faster than larger time frames and you have to watch for retracemnt too.
Now if you trading the 15M, 30M or hourly charts, you should focus on your chart swing and the D ext of each time frame, one the D ext reach on the time frame you trade, the market will retrace, to make a new A B C D or breach it to go to the opposite direction and create a head and shoulder to make you aware that this move has ended. Now Keep this in mind all the time smaller time frames moves within head and shoulder all the time if you can identify that in your small time frame , you have nothing to worry about, plus you have to watch the gartley with A B C D retracement.
To have a clear idea of this, you should be analyzing from Monthly, Weekly, Daily, with all information plotted into 8H, 4H and 1H for entry points and swing directions.
Lill you Know I always trade Gbp/Usd and I know every area of support and resistance about it, the reason I am not trading it much now because it is in consolidating range. Pass by and we can talk more.
I've been doing a good amount of charting (one week and full day). I really like the way everything looks.
