Circular Trendlines

Yes it is

I guess I should have been more patient about posting my information, since I thought nothing is happening at T3.

Now its going in the opposite direction (downwards).

For now I believe we will be going in the same direction (downwards) till T4 which is around April 19th is reached.

My posts will be fewer for today, trying to exercise some patience

Here is the view, downward action to continue until the lows of 3000

I am playing this as having finished c of 2 this morning, now working on the initial stages of 3.

This is the new view:
Drop to 2900's.

Forex factory server overload problem prohibited me from posting this chart. But here it is. Probabilities of 3275 run slim if we cant get above 3150 and maintain it. More likely we will witness a hard drop. That is at least my view from the lines and circles drawn.

Simply because there is not enough time left according to the time divisions shown by the triangle intersection points for this thing to go upwards with the momentum that its experiencing at the moment, which is a stall at 3150

And Also

We are at the pole of a bigger circle, referenced before in the following post:

http://www.forexfactory.com/showthre...95#post5582195

It would not be easy to break the pole of such circle. So downward action is iminent.

Here is another view...

Here is the current view, with price action stalling at 3140, next move will be upwards until the vertical dotted red line is reached. After that point in time it is not clear at the moment whether a reversal will happen or not, but if it does we will be visiting 3025 again, and if it doesnt then we have to wait for the end of the time at the blue line where it intersects with 3300 to see what happens. Price might not get to 3300, but that is the limit of time, if we dont get a reversal at 3220 level

Here is a update, reached the perfect sell spot...

Here is more explanation on the above chart...

Thanks for your continued diligence, Kambooj. You are the epitome of "buying-forward" and I commend you for that.

Enjoy the weekend.

I was asked previously that how do you know where to put the center of the circles?

and most of the time, because I drew the circles so much, I kind of knew from trial and error where to place them, but couldnt explain it properly or didnt know how to. Sometimes it worked, and sometimes it was really messed up.

So now I am putting my recent findings for everyone to read and criticize, because thats the only way that I can learn myself.

And it has to do with drawing these circles to give proper time and price projection.

The circle is a representation of time, and time maps to points on a circle.

So the process is as follows, and shown in the 2 diagrams below:

Mark all the divisions of time first on your chart, then position the circles in either of the 2 ways below:

1. Either the center of a circle has to fall on a time line,

OR

2.
In a downtrend:

Consider The strongest drop that happens from the west side of a circle or North West corner of the circle

In a uptrend

Consider the strongest rise that happens from the West side of a circle or the South West corner of the circle.

Once this wave is identified, then position the circle in such a way, where if you take a equal length to this wave, it will touch the boundary of the circle in such a way where either
A. The price is just about to reach that place
or
B. The price has not reached that place and is quite far away from it.

You will notice that doing the above, your circle(s) will either fall into a circle(s) which has
4 divisions
5 divisions
6 divisions
8 divisions
10 divisions
12 divisions

Each circle will be either one of the above, but not 2. Not all of your circles will completely fit on the screen, so you have to imagine that if they did and you continued doing the same thing (ie put equal length along boundaries), it would probably fall into one of the above categories.

These divisions are time slots in the future. The place where the line intersects the circle. They are not necessary the price level at which price action will get to. The price levels are determined by the trendlines that intersect the time divisions set at the junctions of these places. These trendlines will be picked in such a way where a lot of points has fallen in the past on it.

Sometimes these junctions of trendlines and time lines are also close to the junction of the trendline and the circle itself, which also can be taken as valid spots.

The object of this exercise is to find the perfect spot where time and price meet, and find a close enough time to start looking at signs of a turn around.

Once the circles are drawn, then further analysis is as follows:

What we are looking for in the chart are sections which resemble a pentagon, or sections which resemble a six pointed star. Once we find these sections, then figuring out time is easy, because the junctions of the lines within the pentagon or the six pointed star will be the time slots, and the trendlines of the pentagon or hexagon will be the support/resistance areas.

At the time slots price action switches direction, so in a way we know where price and time meet for us to make the decision of shifting strategy.

When there are several circles, where several time slots of a pentagon and a six pointed star overlap then thats a important time slot.

I have not yet experimented with a octagon or a 10/12 sided structure, but I guess is similar to the pentagon/six pointed star.

These 2 structures (pentagon/hexagon) were more prominent and occured more than others.

The diagrams below kind of show how to do it.
Because I used eyeballing in diagram #1 to draw the lines, and not in diagram #2, the 2 look slightly differnet. Diagram#2 is the correct one.

Kambooj, if you don't mind, would you elaborate on the "barrel roll" concept?

Price has reached an area of circular resistance. Here are a couple of scenarios I foresee:

1) Price opens next week with a strong move (potential gap) from the perimeter of the current circle (a return for a re-test of it may or may not happen).

2) Price fluctuates along the perimeter of the current circle until it decides on a directional bias (a return for a re-test of it may or may not happen).

Whatever the case, the ideal target area for price is the perimeter of the next circle in the direction price is traveling. However, if price loses momentum and doesn't reach it, then I see price returning to the perimeter of the current circle.

Kambooj,

Great thread here. I just started reading so I have a ways to go yet. Staring at my charts in the past, I've always felt there should be more of a curve to trendlines so I think this philosophy will really fit my eye.

I've attached a chart on the current E/U. Would be interested to hear your thoughts. Am I at least on the right track?

Thanks

The barrel roll is the name given to a phenomenon that I have observed when a uptrend wants to change to a downtrend.

Its basically the shifting of angles of the tops as price action progresses. This shifting of angles resembels a barrel being pushed along a hill that slowly increases its steepness downwards, or a barrel being pushed upwards along a hill that becomes flat on the top.
The important part is that it is early warning sign of a drop downwards. There is a third barrel that at some point in time forms and that is the retracement on the drop.

How do you guys draw circles in mt4? Or are you taking screen shots and drawing circles in different programs?

Price is certainly getting pushed by your dashed green and the blue circle. The only thing about the red circle and price following its boundaries, is that the 2 bounces off the pole of that circle are not very strong bounces that have travelled at least 20% of the diameter of the circle. This means that in the near future chances of the pole of the red circle breaking downwards can increase.

If you look at your blue circle, and draw a vertical line through its center, you can see that its almost very close to the time that the strong drop from 3380 region happened. Also the grey region (agitation region) of that circle lies somewhere along the 2850-2950 region. This means that if a drop happens from our current position at 3218 level, and breaks the red circle, then at a minimum it will go to the grey zone, where it will find some support. If at that level it slices through the 2850-2950 level, then you will have a perimeter to perimeter move going to the south east part of the blue circle.

Interestingly enough as you draw circles, look at how the centers of the most interesting ones align with time

On the very first page of this thread, on one of diagrams I have screen shots of how you draw circles on MT4. But when you change time frames on MT4 the circles change shape, and thats why I dont use MT4 for drawing circles.

I update the important information on this thread through links on my very first post, so everytime that I think something important has came to my mind, I update the links on the very first page to point to that article.