Circular Trendlines

Kambooj....lovin your posts...keep up the great work.....I like the way u have evolved your study to an if-then kind of approach......well done

dear kambooj!
euro-usd my sl its 100 pips.
At the action Zone, the euro came back? or go faster down?
I would like to learn this strategie!
My question to you, how many pips you make per month?

Yes, in the action/reaction zone here, the EUR will have a rebound. So it will find some kind of support. In this case it would be a reaction upwards. It wont accelerate more downwards in this case. it will bounce up.

As far as a strategy is concerned, you can use the circles in a variety of ways:

1. Confirm or negate your Oversold/Overbought indicators
2. Use it in conjunction with Elliot Wave to find where the last wave ends.
3. Use it in conjunction with Fibonacci retracements to get overlapping confirmation.
4. Use it in conjunction with other straight trendlines to find support/resistance zones.

You have to keep on drawing these circles on different time frames to get a feel of what is happening. The best time frames to experiment with is the 1 minute and 5 minute time frames.

You also have to use them in conjunction with striaght trendlines in impulsive market action.

My own basic strategy is to use these to find support/resistance spots, then look for fibonacci's that end at those levels and correlate them with Elliot Wave. These 3 together make up about 80%-90% of the analysis . Then at the very end I check


RSI(13) H4 and Daily is overbought or oversold.
and Bollinger (20,2) >> whether it has hit the top of the bollinger bands and broken it.

Now the way I use these is that if a strong support/resistance area is indicated by my lines and curves

then RSI should be maxed out and candles should have broken the bollinger.

Once its confirmed, then I go in the direction of H4/Daily time frames until the next support/resistance. That means sell on overbought and buy on oversold

What I do is that I start a farming process. I give myself around 200-250 pips of area on the chart, and spread my lots within that range. This means that I choose the smallest lot that I can afford and collect a profit of 20-25 pips on that lot and get out. Anything around 25-50 pips I dont wait and I get out. Rarely I let my lots run for more than that, and experience has shown me that its better to collect the cash, even if I think it will go to 150-300 pips. So I use my own forecast for direction primarily and I trade in that direction for small profit.

If market goes against me at those support/resistance spot, I leave the order open and decide later after all the heat of the market is done to see what I can do. In many cases a retracement happens, and I collect small profits of 10/20/25 pips and exit all my orders, and wait to see what happens or what I did wrong and save my lots again in the same direction at a different price level.

If situation still looks like a turn around at a higher price, and a retracement doesnt happen, then I put additional lots at that higher price. That is what I call farming process.

In occasions when the stoploss is going to be reached, I use hedging instead of killing the order. I dont like to kill a order if it goes in the wrong direction, because in many cases a retracement back to the same point will happen, and if retracement doesnt happen and it might take 1 week for the market to come back, then I hedge it, and do it in the form of breakouts from support/resistance levels.

This works for me very good because if the pending orders for the hedging positions at the breakouts dont get hit, then I am safe, and the market will eventually turn back and I make it at break even or with a small profit.

I only use hedging as a way to stop the loss when market goes in the wrong direction. Not like some people that put a buy and a sell order at the same time hoping that they make money in both ways.

I had orders at 3900/4150 for a sell and let them stay last week, this week all of them turned out to be positive. Didnt hedge when it went to 4250, was too scared. However I did try a small lot for a buy at 3960, but killed it very quickly at 3940. I had other lots between 3900 and 4150 for a sell that were doing good

As far as pips per month goes, it averages out over a 3 month period to 300-400 pips per month, but on some occassions for a period of 2-4 days I wont make any pips, and suddenly in a matter of few days all my lots turn out to collect 25/35/50 pips.

Thanks will keep on evolving more

Buy zones around the lows of 3600/highs of 3500 approaching soon

Here is the view...

3580 is a major weekly #

Here is a different view...

How high it can go from here? Thanks.

There is not enough points right now to make that decision, but according to the M5 chart here:

http://www.forexfactory.com/showthre...17#post5091517

then the pole of the upper circles are at 3800 and thats a given. We might start this upward movement a bit later.

Its still trying to find support and I say its shifting from 90% bearish to 50% bearish at the moment.

Need more than 1 touch to 3600 level. Waiting for the second one at the moment.

Kambooj what are your thoughs on eur/gbp if i may ask? correlation to euro usd is tight, and i am long on a demand level and a bounce from the circular trendline on daily chart.

can i have... the investor of this great invention's perspective as well on the pair?

thanks kambooj

Buma

heres what i got so far.

whoops sorry the bullish fan was wrong.
redo:

You need to work on a condensed chart to get more points, but its not a pair that I would like to trade, since its stuck in a range where it can do real wild movement considering its at a pole region. But here is my view on it...

i like them in one chart and u sir have a point
thanks kambooj. good trades to you sir.

One other thing that I missed in regards to the EUR/GBP chart is that if motion hugs the inside of the blue circle and doesnt move much between the blue and black circle then most probably it will go down from the points that I have mentioned.

However there is the scenario that you can have, where a strong spike upwards can occur from the pole of the blue circle, and whether we are stuck between the blue/black circle or we are at the current position a move upwards is imminent.

Now in the second case where the spike is strong, if it finds support outside the black circle, then at a minimum it will travel to its center, which is roughly around the 0.92 mark.

That would be a heck of a spike in its initial stages.

If motion is stuck at a pole region, then movements either way will be very strong, until the pole region is passed through time.

great u woke me up...
revised clean chart.

still man tell me ur journey into the whole circles concept.

it has this magical touch of price/time concept like gann fans and astrological cycle trading.

orange white lines show possibilites.
i found a great deal of great eventualities at intersections of your trendlines similar to gann and all.

The Journey still continues,

as I find new ways to draw circles I update the first page on this thread, on a section called "Circle Drawing Techniques" and it references few posts where I have found any new ways that yield some more info.

i am in love with them.. great innovation. you should write a book or something. you know how there is 'gann fans' 'gann grid' 'fibonacci retracement.
you should make it 'kambooj circles trading'

sounds like a cult of some sort..

its cool to know someone invented a sort of system, NOT indicator made. and or made already.

do you use shorter timeframes as well? what is the ratio of effectiveness in your opinion?

im trying it out now

Here is the view from M5...

The situation with the GBP is not very clear at the moment. But as long as the pole area of the black circle is not broken we are going upward with this pair. If the pole of the black circle is broken below 5980 then we will be diving to the 5860-5900 zone. For now buying at 5990 is a very tricky move, since that area is at the center of the green circle and the resistance being experienced close to the center of that circle can push the price downwards.