Sine Wave and Channel Reflection, Action/Reaction putting it all together

I can understand everything except how the original ellipse was drawn.

When the ellipse is highlighted you will have two sets of opposing points to adjust the ellipse. One opposite set you can move anywhere on the chart, the other set only moves in a perpendicular angle.

Set the two that can be adjusted anywhere to the sides, then you can adjust the other two across the vertical end/center to the level you want.

hope that explains it.

Ok...I think I understand now. Interesting.

Auxesis, if you don't mind, contact me via pm.

I think that's pretty good.

A lil' experimentation...

Circle and other geometric shape constructor lines work great as channels and support/resistance when projected in to the future.

http://img523.imageshack.us/f/tp01oct30al6.gif/

Just wanted to show how things turned out...

Hi Auxesis,

Just keeping those ellipses going in my mind...you can create a sphere of rotation around price...almost like an orbit. Don't know if that will lead to astrophysics or something, but I do like the idea of price having an orbit.

Saw an interesting comment the other day...I was looking at an article on the requirements to become a Fund Manager. The statement was made that is was a plus to have a degree in Mathematics and Physics. Now who would have thought...a Fund Manager? That should speak volumes about price action etc...at least to me it does .

FX4

How will price react upon breaking the confines of the circular projections?

FX,

I'd have to say the wave of the future in trading is driven by algorithms, computers don't necessarily think better ( as they are limited by their programming), they just analyze and execute faster! If you program a computer to identify price behaving in a certain manner, then you might be able to jump in front of the herd using computers executing orders in fractions of a second. Ride the following wave and exit out. Yes I can see where a physics or math degree would benefit.

In regards to elliptical constraints of price, remember what we are after, that being an edge to trade. To draw an orbit or circle first you have to identify a center point. Michael Jenkins illustrates a technique using this on parabolic moves in the market and how to draw them. It's easy at times to look back on the charts and see price behaving in a certain fashion, but deriving an edge before hand, in real time --- like the timing of a change of state in price action, price reversing or breaking out, or even consolidating is what we seek

But I have to warn that trying to frame the markets continuously with one method or technique (a holy grail of elliptical studies) will drive you mad. Cycles break down, invert, mutate over time and are acted upon by a larger. So think of your circles and ellipses as tools in the tool box. If you want to drive a nail, you don't grab a screwdriver, you grab a hammer.

Likewise, when charting, there's times to pull out a compass if you will and draw them circles, other times you might want to grab that straight edge. Use what the market is offering.... imho,..fwiw

regards

Not an answer just a comment...

I notice that each time price breaks the confines of the circular projection there is a long (bullish in this case) candle. Maybe price "knows" there is a confine there and it needs to push. Interesting...

FX4

Thanks for indulging me in this discussion. Yes, algorithms are the wave of the future...was just mentioning it to expose the reality that would seem "strange" to some who would not admit that alot of market action is computer generated (and not as random as they would like to believe).

Will look into Michael Jenkins and his studies. I can only imagine how delving into it headlong can "drive you mad". Not wanting to focus too much, but, like you said, it is another tool in the toolbox. Just want to get a handle on it and use it whenever possible. It's about being a versatile trader. I have a basic method that I use, but the more your mind is aware of, the more your eyes can see to help you adapt to something different in the market at a particular time. Just my thinking...

Many thanks for your comments and thoughts,

FX4Newbies

Sideways (Consolidation)

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FROM POST #12:

My take:

Smaller playing to the tune of the larger

fwiw

http://img692.imageshack.us/img692/5...usdweekly2.png
sometimes(enough times to make me wonder and start researching) price just seems to be confined in an ellipse ..
my quest/question is this: if price moves Ato B retraces b to C and expands the original move to D, the end of the expansion can be/it is on the same ellipse that connects the A B C

Mated ellipses is something I've studied and traded for years.

Some of my old blog entries:
http://4xcycletrader.blogspot.com/2007/08/ellipse.html
http://4xcycletrader.blogspot.com/20...se-part-2.html