Funny Looking Rectangles & Useless Drivel

Moving away from the standard thought patterns of most traders, to a place where the unconventional is convention. Here is a "funny" looking "rectangle" that might have some clues about where USDJPY goes next:

http://i61.tinypic.com/iw7pdu.jpg

The bet is that it won't follow conventional wisdom and that it will do something fairly unconventional.

The funny looking rectangle above is essentially a Glide Path on what can be thought of as Final Approach to a specific target. It is by no means a 100% slam dunk guarantee, but it does represent a fairly plausible explanation for where price has a good chance of going in the near term.

The chart is M1. This Shape that the market has taken was not imposed by me, but rather observed as it unfolded. That funny looking useless rectangle above illustrates where the USDJPY has been on the M1 time frame. The "Wanna Bet" level indicates where the USDJPY has a good chance of ending up fairly soon. The question is WHY? Why do currency pairs behave this way and can the markets be predicted with any degree of accuracy to a specified target?

This thread shows the concept of what I call the B2i Pattern. Shhhhhh! Patterns are not supposed to exist in the market. They are nothing but figments of your imagination. They are not real - they are dream-like states born of unconscious and delusional thinking, so be careful - shhhhhh, don't let anyone know that you use "patterns" in your trading.

For a bit more definition:

http://i60.tinypic.com/25qf43m.jpg

With the B2i Pattern, the "Final Approach Fix" is the Entry Point into the trade. Form that point forward, just fly the approach to the target area (Intersection level). If you have to declare a Missed Approach, simply draw the next significant B2i that the market produces for you and make a decision whether to fly the Holding Pattern (wait for momentum to take you to the target/intersection), or abandon that approach altogether and fly to your alternate destination (meaning - take whatever profits are on the table without risking a Hold to the specified Intersection price level).

The B2i rules are fairly straight forward and the silly looking rectangle speaks for itself. There is a Starting Point, Projected Ending Point and two (2) Intermediate Points for the Highest High and the Lowest Low of the B2i structure. You search for B2i structures in the market that are of sufficient size to produce the kind of pips you require. You Enter at the Final Approach Fix point when price is far enough away from the Intersection to satisfy your profit requirements.

This silly looking rectangle is just for illustrative purposes - I personally have larger pip requirements than this dumb box provides. This simply demonstrates how the box works. It is up to you to figure out WHY is works.

Funny little rectangle update:

http://i57.tinypic.com/vfxout.jpg

Price has just moved outside the box and its Target Projection Leg and is minutes away from reaching the Intersection time, where price will then be "clear" of the Intersection Point and free to continue its approach. That does not necessary mean that the approach will commence immediately. It simply means that the B2i Structure itself remains extant and unchanged - which by itself means a HOLD into the Long position at least until the Fall Line is encountered, or until a Missed Approach is deemed necessary, another B2i Box is drawn and a decision is made about Direction and Timing (all decisions made with the next B2i Pattern).

This little laughable box will teach lessons about the market that novice trades never fully understood, but it will take some time on your part to learn what it has to teach. With B2i, when the Student is ready, the Teacher will appear. Use your brain and THINK about WHY this is happening right before your eyes.

Lol! Like I said in the other thread...embrace the illusion and make some money!

Price now clears the Intersection and once again, these little funny useless rectangles teach us a lesson about price behevior:

http://i59.tinypic.com/xvaj4.jpg

Maybe I'll post another illusion later in a David Copperfield'esk type manner. Maybe next time I'll make the box walk on water, LOL!

The Before and After nature of B2i speaks volumes. Without the silly funny looking delusional box, the market looked rather "conventional:"

http://i59.tinypic.com/jfjme9.jpg

Who knew.

so it's just a parallellogram?

looks like a channel.

what happens if DH reached and the runway is in sight, but you haven't opened a trade? (PPL here )

Careful, you're freaking people out with that kind of talk. Lol.

You did!

Ok, any questions on the so-called randomness of the currency markets? Or, how you paint your own completely useless and extremely funny B2i Box?

This thread delivers on its promise of bringing you funny little useless rectangles and gibberish drivel for explanations.

You have to admit, that was a kinda "funny." Ha, ha, ha.

Don't get me started:
http://i57.tinypic.com/6oe64p.jpg

http://i61.tinypic.com/2ds09jo.jpg

This one is not so easy. This is the EURJPY M1 Chart. What makes this one difficult is the same thing that caused me to do more research into discovering why some of the B2i Boxes failed. What I discovered is that whenever they struggled to strike the target at the Intersection, there was a tremendous amount of pressure or stress in another indicator that I developed called the OS1_X60. OS1 is simply a Moving Average. But, not your typical MA. It uses obscenely LARGE periods (that I won't give away) and it is ALWAYS plotted on the M1 Time Frame.

So, what we are going to witness here, should be the failure of a B2i, because of a large amount of upwards pressure in the OS1_X60 which you do not see on screen.

Why post a set-up that I expect to fail? When you get really serious about your trading, you will run Counter-Trades under scenarios where your indicators or systems should fail. That is the inverse proofing I like to have in my research. Standby, here she comes!

http://i59.tinypic.com/103smkk.jpg

Here it is again (EURJPY M1) with OS1_M1x60 (indicator) looming high above providing all that recoiling short-term pressure to the upside. This should cause B2i to struggle:

http://i61.tinypic.com/28u1ag2.jpg

This is why I don't manually trade. Just two indicators and the drama increases. I don't like drama in my trading. I'll take boring ole traded any day of the week over Mama Drama.

B2i still showing its tendency to do the "right thing" after price clears the Intersection Point.

http://i61.tinypic.com/i5u2d0.jpg

Anyone figure out why price loves to challenge the Projection Target Line every single time one of these funny little rectangles gets drawn on the chart? Anybody got there thinking cap on?

Why would price always turn the corner like this, just because some idiot like myself drew a few lines on a chart? Its all "nonsense" is it not? It is not like I have some "magical' ability to "predict" what the market will do next, right? Nobody can do that, right? Nobody can predict the future, right?

Here's another way to look at B2i:

http://i60.tinypic.com/2cffaiv.jpg

Now, you see a Fifth (5th) Line drawn diagonally across the B2i structure. This line took me to Version 2, of the indicator several years ago. It incorporates input from the OS1_M1x60 indicator hanging high above price. I had not created OS1 back when I first established B2i.

So, where am I going - which trade will I take? I'm going Long, back into the OS1 Structure for an increased time in trade, but with a corresponding increase in probability for a successful outcome. It is simply the safer of the two trades to make in this particular configuration. When you start adding in all the indicators that exist in the trading system, these kinds of decisions simply cannot be balanced manually in real-time. That's why I need a signal engine that contains the decision making algorithms.

So, on this scale, this is a fight between B2i and OS1. B2i is short-term and OS1 (by design) is a much longer term indicator.