The Student Handbook

Hopefully I'm not jumping the gun but do you think you can post a chart with your entry on it and explain what you say and why you entered? I'm a visual guy so that would help me a great deal.

If you planned on doing this and I just jumped the gun please ignore my request and continue on the way you have been.

I will be posting charts. Right now though, just hoping to avoid confusion as to why I've taken a trade without first introducing its premise. Keep in mind I have been trading this style for a few years, so I tend to jump all over the place, which might cause some confusion.

We'll get to the meat soon enough!

Not a problem. Continue on with you plan. Sorry for rushing.

Hi

Signed up and willing to learn and thanks for your time and will power to sit

with a class of learners.

John

Ok - let's kick this thing off. Looking at the daily time frame we can see that yesterday's candle closed pretty bullish. The RSI is sitting squarley on the 60 indicating a moderatley over bought pair.

What I key on here for the RSI was it crossed over on the 21st indicating a new trend (bullish). Until the RSI crosses over or touches the 50 going down, my mind set for the daily is Bullish (using yestreday's bullish candle) and the fact that the RSI is sideways on the 60. My mindset right now is look for buy opportunities.

Now look at the candle for the 27th, it's high and the candle right before it - You see the double top between those two candles yes? The completion of the 27th's candle is bearish engulfing to the candle preceding it (screaming sell). And it did go down all day yesterday until the 1900 GMT us news release (which also corresponded with the 200 on the 4H, take a look - IT BOUNCED!).

Ok now I draw fibonacci from X to what I determined to be the A leg (in the attached chart). Fibonacci's premise is that price will retrace to the 38.2 level in strong trending markets (remember the RSI crossed the 50 on the 21st, turning the bias bullish). You will see that yesterday's candle retraced to exactly to the 38.2 level

Warning signs for me. The A to B leg is usually formed with more than 1 candle, but the retrace was there none the less. Speculation says that this pair might not be done going down (at least in the short term). inverted candles get ignored all the time but rarely on the daily TF

Quandry: What is our Bias?

More to follow

Hi 9er,
I did download the template & indicators but how come my template come out without the 'butterfly'...only the alligator,rsi,awesome & fractals...pls help.

now to the 4H and a little confirmation (love it when a plan comes to together). A look at the attached chart shows also (first notice the bounce off the 200 - LOVE that MA!). A quick draw of a fib from X to A (A being the bounce off the 200) begins to paint a picture. Believe what we will see is the advancement of the A to B leg to any of the drawn fibo levels (my guess would be the 38.2).

So if we know that X to A is finished, it stands to reason that A to B is forming, we can slowly start to see entry opportunies. For me (from the 4H), I see an immediate opportunity for a Buy stop at the high of the 61.8 retracement level (plus spread, plus 1 pip - for me +3 pips from the 61.8) 1.29616. I am going small here because the Awesome oscillator sorely disagrees with me at this point.

I'll explain: in actuality when the AO crosses the zero line, this indicates a reversal of momentum (not necessarily trend). The momentum is slowing from the bullish bias - why? because it needs to form the A to B leg. Price is currently at the 50.0 fibo. I believe it will go to the 38.2, allowing time for the lagging AO to catch up.

Remember any time the B to C leg can actually retrace all the way to the A, as long as it doesn't exceed A's low it is a true retracement. If C ever exceeds A the premise of the ABCD pattern is GONE. Reset, delete any pending orders from the premise, take your hand off the mouse and move on.

Any questions?

Post your chart brother

And please ignore the sell stop on the chart. That was a premise from yesterday and purely speculation. it is now deleted

this is the template.

On to the 1H. Further confirmation that short term bearish retrace is still being contemplated draw your FIB from A to B. It is apparent to me that B to C is being formed here as well. Notice also my buy stop from the 4H premise matches nicely with the high of B. I am more comfortable with this and can now use the much smaller candle on this TF for my stop loss (1.29478) my preference only.

Notice also the RSI is bouncing off the 50. until it crosses the fifty - I mean CROSSES the 50 I am bullish on the 1H (another confirmation)

If this is truly the B to C leg, once it completes we can draw a fib (from B to C) and determine our target area for profit.

Any questions?

Uh no sir it isn't. it is an excel file, a file that I never download from any forum (due to macros). I need you to post a chart please.

sorry....

Damn I can't believe I left this out. Bill Williams Fractals. When price crosses through the alligator mouth you look for the first fractal to form OUTSIDE of the alligators mouth. The absolute strongest and best opportunity for a buy or sell stop - very powerful

Take a look at the 1H chart, find the first up fractal that formed outide the mouth. In this case the fractal price corresponds very nicely with my buy stop.

Are you starting to see how these indicators work eith in solo or in tandum with each other? Now that I have formed my premise of a trade, set my buy stop, now I simply wait.

There used to be a ZUP or Gartley indi that printed ABCD on the chart - don't think I have it any more.

Lion King - the thing with the TPL file is if you were missing indicators on your platform, I am not. using your TPL file does me no good because it looks fine on my station

I cannot help you unless I can see your chart. Please post a chart

Please post a chart

And we are in long

Now we look for an opportunity to remove the risk.

Does anyone else see an inverted head and shoulder pattern on this chart?