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Circular Trendlines

  • #421
  • Jun 24, 2011 12:59pm Jun 24, 2011 12:59pm
Quoting DaveXXXX
Smart! I was liking the 4153 area that Kambooj had in one of his previous charts, once it fell through that I was looking to get in, caught it manually at 4147. I'm locking in BE (actually +2) on all but one of my lots and letting it run up now. While writing this I took profit on 2 lots at 40pips- couldn't resist.
I was able to get in at 1.4145...
There is always a price for promises you don't keep!
  • #422
  • Jun 24, 2011 1:30pm Jun 24, 2011 1:30pm
The EUR/USD on the M1 chart has not been able to penetrate through 2 South poles of the RED and BLUE circles.

It has encountered stiff bounce and support on both of these curves. Motion will continue to go upwards, specially towards the end of the trading day and the 4200 level will eventually get broken upwards.
Attached Image (click to enlarge)
Click to Enlarge Name: EURUSD_M1.jpg Size: 65 KB
  • #423
  • Jun 24, 2011 1:39pm Jun 24, 2011 1:39pm
Quoting Kambooj
The EUR/USD on the M1 chart has not been able to penetrate through 2 South poles of the RED and BLUE circles.

It has encountered stiff bounce and support on both of these curves. Motion will continue to go upwards, specially towards the end of the trading day and the 4200 level will eventually get broken upwards.


It's trying that red circle again
  • #424
  • Jun 24, 2011 1:44pm Jun 24, 2011 1:44pm
Yes, I noticed, we will have to see.

There is a reverse Head and Shoulders too if it goes to 4260 level.

But I wouldnt give it much of a strong break downwards right now at 4170.


Quoting TraderFitz
It's trying that red circle again
  • #425
  • Jun 24, 2011 1:57pm Jun 24, 2011 1:57pm
Kambooj,

I wanted to thank you for this thread and everything you share on it. The good news for me is that my charts are looking more and more like the charts you post (which to me mean I am getting better at it). I am still having trouble figuring out what it all means but you have been helping with that as well. Thanks
  • #426
  • Jun 24, 2011 2:10pm Jun 24, 2011 2:10pm
Im also thankful Kambooj for all his effort and work he is putting in, the week has come to an end, its good for all of us to take some time off and refresh our mind by going outdoor somewhere. Kambooj I wish you the most greatest weekends, get enough strength and energy for the next trading week. You gave us a lot of pips this week. Hopefully next week will be another great opportunity for all of us to continue our knowledge and of course getting some feedback $$$ from the market.
Lybi lydey, lybi vragov.
  • #427
  • Jun 24, 2011 2:17pm Jun 24, 2011 2:17pm
Thanks TraderFitz and Pip Maker.

Hope I can do less mistake and fine tune the use of this methods with the questions that you guys ask. Still there is a lot to explore, and hopefully everyone will benefit

Have a great weekend and we will keep in touch.
  • #428
  • Jun 25, 2011 6:47pm Jun 25, 2011 6:47pm
ok, well here is my take on the E/U. I can draw circles but I am not very good on predicting what is going to happen. So, I figured I would put my thoughts out there (with charts) and let you guys correct me. So, here we go.
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  • #429
  • Jun 26, 2011 1:35am Jun 26, 2011 1:35am
Introduction
This article explains one of the most important uses of Circular Trendlines and that is to predict direction of price action.

Method
In the Circular Trendline analysis the deciding factor for change of direction primary lies in motion approaching one of the 5 important areas of the circle (Figure 1) These areas are the North, South, East, West and the Center Of the Circle. A brief description is given below as to the characteristcs of price action as it approaches these regions. But more detail is given in the diagrams labelled as Figure 2, 3 , 4, 5 and 6

1. The North Pole, and the South Pole. (Figure 2, Figure 3, Figure 4)

Price Action will find these regions to be extremely strong areas of the circle. 2 things happen in these areas of the circle

A.
A strong support or a strong resistance is formed.

Support forms OUTSIDE the perimeter on the North Pole, and INSIDE the perimeter on the South Pole

Resistance forms INSIDE the perimeter of the North Pole and Outside the perimetr on the South Pole.

B.
If price action breaks the poles, it will travel very fast towards the center of the circle. In rare occasions it will slow down as it approaches the center of the circle, but in the majority of cases it speeds up and lands on the opposite side of the perimeter of the circle.


2. The East Region and the West Region. (Figure 5)

When price action approaches these regions, initially the strength of the movement going in the same direction weakens. There is a possibility of price action switching direction when it approaches these zones. Depending on the distance from the center of the circle different price behaviours can be observed.

Just as a side note to this area:

The color Grey was choosen for this area, denoting that there can be other behaviours that have not been properly classified in this area, The nature of some of these behaviours is still to be determined, but one thing remains very evident, and that is whatever behaviour pattern that Price Action exhibits in these areas will be largely influenced by its distance to the center of the circle.

3. Area around the center of the circle. (Figure 6)

When price action approaches this region, then depending on the angle of approach, the strength of the movement can weaken or get stronger.

If the angle of approach is anywhere from 35 to 55 degrees then strength of the movement decreases as it approaches the center and then it will reverse violently

If the angle of approach is anywhere from 10 degrees to 30 degrees then the strength of the movement increases as it approaches the center of the circle and it will land on the opposite side of the perimeter

The above 2 scenarios are explained better in Figure 6

Overall
When there are multiple circles in the path of movement of price, which would be the norm then the strength of each one of the circles has to be examined so that the overall evaluation of price action becomes more accurate.

Since price will always choose the path of least resistance to go where it wants, if a region is difficult for price to go through it will go to the next weak spot and try to make its way from there. If there are 2 regions that are equal in strength, then it will spend so much time within those regions so that eventually one will slightly become weaker than the other and then a major break occurs.

By region in the above statement we mean at least 2 circles or a group of circles where price bounces between them.
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  • #430
  • Jun 26, 2011 1:37am Jun 26, 2011 1:37am
TraderFitz,
I hope this post helps:

http://www.forexfactory.com/showthre...40#post4726240

But I will take a look at it and post my comments on it later.

Quoting TraderFitz
ok, well here is my take on the E/U. I can draw circles but I am not very good on predicting what is going to happen. So, I figured I would put my thoughts out there (with charts) and let you guys correct me. So, here we go.
  • #431
  • Jun 26, 2011 2:33am Jun 26, 2011 2:33am
Overall you have the right idea, and just some fine tunning here and there,

dont forget that the same conclusion can be drawn many ways, and also if you have a break of any circles that you have, you need to redraw the scenario quickly to see whether you should have drawn the circle using a different set of points.

Hope it helps


Quoting TraderFitz
ok, well here is my take on the E/U. I can draw circles but I am not very good on predicting what is going to happen. So, I figured I would put my thoughts out there (with charts) and let you guys correct me. So, here we go.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: TraderFitz_M1.JPG Size: 202 KB
Click to Enlarge Name: TraderFitz_M5.JPG Size: 207 KB
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  • #432
  • Jun 26, 2011 5:56am Jun 26, 2011 5:56am
Quoting Kambooj
Overall you have the right idea, and just some fine tunning here and there,

dont forget that the same conclusion can be drawn many ways, and also if you have a break of any circles that you have, you need to redraw the scenario quickly to see whether you should have drawn the circle using a different set of points.

Hope it helps

I am at a loss of words ( and that is saying something). The level of information that is here is amazing. I will study this all day today with joy. Thank you!
  • #433
  • Jun 26, 2011 8:22am Jun 26, 2011 8:22am
I forgot to save the last chart before posting it. So there is more
comments I put on H1

Quoting Kambooj
Overall you have the right idea, and just some fine tunning here and there,

dont forget that the same conclusion can be drawn many ways, and also if you have a break of any circles that you have, you need to redraw the scenario quickly to see whether you should have drawn the circle using a different set of points.

Hope it helps
Attached Image (click to enlarge)
Click to Enlarge Name: TraderFitz_H1.JPG Size: 216 KB
  • #434
  • Jun 26, 2011 11:49am Jun 26, 2011 11:49am
Dear Kambooj. I am surprised how much time of yours you invest to explain others your system plus post so much information for all of us to learn. You really have a sweet heart. Maybe it doesn't sounds too good when a guys says that to a guy but I asked one question another guy here on forum and he replied me with a rude and mean way so you really are a great person with great soul. Thank you. Im following this thread every hour and I will have more questions later lol.
Lybi lydey, lybi vragov.
  • #435
  • Jun 26, 2011 12:33pm Jun 26, 2011 12:33pm
We are all here to learn, I learn by your questions, and at the same time I offer what I know for free to people to learn.

Although knowledge is power. But knowledge wouldnt do you anything if you dont put the hard work to make it work and practice it.

When I started in forex, I read few advertisement about different courses that promised to make you money. I guess the people who designed these indicator based systems were not there themselves to show the tidbits of how to use it properly.

So after making some money and loosing it, I got fed up with indicators, and went and studied patterns and pattern recognition, and tried to do trading just based on fibonacci and pattern recognition and the ratios that exists between the waves.

Again that was good for some time, until one summer came and then I lost quite a bit of money on it because all motion in summer time is corrective, and impulses dont start until later in mid august and september and I thought according to pattern it should start, but never did until later.

Pattern recognition/Elliot Wave is a great trading system, but again the fore fathers of these systems started in the 1920's and 1980's and pioneered this concepts, and market was not as crazy that it is today. So even the best of the best in such systems continue to discover "New Patterns" when things dont work the way it should, and by the time you know the inner most structure of these patterns or the "Exception To The Rule" then you lost a lot of money.

So I became again frustrated at that, and then one day I said to myself, that if somebody just gave ma a plain chart, and nothing else and said where is the next move going to be, then what do I do?

So I studied the Median Line method of trendline drawing and analysis and found many many times trendline analysis can catch the places where wave structure says "It Should Happen" and in reality it doesnt happen.

So for a while I was doing trading solely on the Median Line concept, and it was working great. The only problem I had with it, was that

How does someone catch false breaks of the trendlines?

because on few occasions I got burned on that, and that was when a curvature on a chart caught my attention, and it was exactly at a spot where a different median line passed by it.

So I started to experiment with curves, and it was great. The curves would catch the false break of the straight lines, and the straight lines will catch the false break of the curve lines. They complement each other so well its unreal.

So I figure that I share this knowledge with everyone, and at the same time I need help myself in other areas of trading, so maybe through a lot of questions and answers I learn too. And it has been a great and wonderfull learning experience for me too.

But Thankyou

Quoting Pip Maker
Dear Kambooj. I am surprised how much time of yours you invest to explain others your system plus post so much information for all of us to learn. You really have a sweet heart. Maybe it doesn't sounds too good when a guys says that to a guy but I asked one question another guy here on forum and he replied me with a rude and mean way so you really are a great person with great soul. Thank you. Im following this thread every hour and I will have more questions later lol.
  • #436
  • Jun 26, 2011 12:49pm Jun 26, 2011 12:49pm
Quoting Kambooj
We are all here to learn, I learn by your questions, and at the same time I offer what I know for free to people to learn.

Although knowledge is power. But knowledge wouldnt do you anything if you dont put the hard work to make it work and practice it.

When I started in forex, I read few advertisement about different courses that promised to make you money. I guess the people who designed these indicator based systems were not there themselves to show the tidbits of how to use it properly.

So after making some money and loosing...

No!!!!! Thank you.


This is the first thread on this forum that has been friendly and inviting. I hope we all continue to work this method and contribute so that we all may learn.
  • #437
  • Jun 26, 2011 1:22pm Jun 26, 2011 1:22pm
Quoting Kambooj
Introduction
This article explains one of the most important uses of Circular Trendlines and that is to predict direction of price action.

Method
In the Circular Trendline analysis the deciding factor for change of direction primary lies in motion approaching one of the 5 important areas of the circle (Figure 1) These areas are the North, South, East, West and the Center Of the Circle. A brief description is given below as to the characteristcs of price action...
Huge valuable info
Wish have time to read all but must run
c u
  • #438
  • Jun 26, 2011 1:28pm Jun 26, 2011 1:28pm
If you find this thread useful and you spend hours of reading and learning from this thread just like me then vote ***** for this thread
Lybi lydey, lybi vragov.
  • #439
  • Jun 26, 2011 6:50pm Jun 26, 2011 6:50pm
Still the pair is in a position to go upwards to 4260-80 zone.

4150 can be a good buy opportunity for about 100 pips, with a tight stoploss at 4130
Attached Image(s) (click to enlarge)
Click to Enlarge Name: EURUSD_M15.jpg Size: 82 KB
Click to Enlarge Name: EURUSD_M5.JPG Size: 149 KB
  • #440
  • Jun 26, 2011 8:28pm Jun 26, 2011 8:28pm
Quoting Kambooj
Still the pair is in a position to go upwards to 4260-80 zone.

4150 can be a good buy opportunity for about 100 pips, with a tight stoploss at 4130


Well that drop to 4100 was a surprise.
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