The Paradox System

many thanks for the information Brother

Your Welcome.

I am going to get into the DB/SAR at this time so the rest of the week you can study it. And the DB/SAR is ONLY for the 2 hour and the Daily Charts. If you place it on the 1 hour you will have some major problems trying to trade it.

The DB is only a trend indicator and has no value what-so-ever with the Paradox. BUT - it is a tool for the SAR and that is where the value comes in.

In trend the DB will paint from candle to candle of lower/low in the downtrend and higher/high in the uptrend. And the price tag that is showing with the DB in Thistle is the SAR - and not the DB. So in consolidation both DB and SAR are running together with the DB showing the SAR behind the DB and not showing.

In consolidation when the DB is showing with the price tag you pretty much have an entry. Lets say you have a hit on support in consolidation and the DB (with the price tag) connects with the bottom of the support candle you then have a reversal on the swing. Same thing vice-versa. But you always want to wait for the next open 2 hour candle for an entry. In consolidation you could get the next candle to bump Higher/High or Lower/Low depending on trend of the swing and move to the next candle. But - you have a 40 stop and that will hold until the reversal. But other times it would just take off on the next candle for the reversal.

In trend is a totally different picture.

So let me talk about the downtrend since we are in one. In the beginning of a downtrend you have both the DB/SAR attached to the upper candle with the Fibo 0%. 90% of the time the SAR will be the one to break loose from the DB and attached itself to the bottom of a candle. On the next candle - if the DB does not attach itself with the SAR then the SAR is set in stone - it will not repaint. The market will reverse and the SAR will reattached to the top of the next 1-3 candles for an entry back into the trend. And if the Parabolic is in that trend then it will attached itself at the Parabolic.

Once the downtrend is in full bloom then the DB and the SAR will eventually attach to a bottom of a candle (together) in the trend. And it will continue in the trend - together - from lower/lows. Eventually the Fibo will flip with the "0" on the bottom indicating an oversold market. But depending on trend it could very well keep going lower/lows if the trend is that strong. Towards the ending of the trend you will have the SAR break away from the DB and attached on an upper retrace candle. That SAR attachment is also set in stone indicating an entry back into trend and reattaching with the DB.

Once that happens you will then be looking for a reversal of the trend. But consolidation is in the horizon for the reversal and could consolidate for many hours before it does reverse. And you can recognize this with the bumping of the 0%.

This is the basic and next week we will get more into the DB and the SAR.

Wow! I'm on the edge of my seat with my head swimming! Plenty of questions but I'm sure they'll be answered during next weeks sessions. So exciting...and fun to learn. God bells you Dana as I know He has and I'm looking forward to what's coming!

Mr. Dana, so we can not speculate that every SAR attachment event would be always a reversal, right ? Sometimes the trend would be continue, just like today. So, there are times when SAR attachment would be just direct reversal without any continuation trend, right ? in the case of continual trend, what should we do to anticipate ? sorry for my confusing question. thank You

Like I said - we will get into it next week.

Another thing I forgot to mention is an indication of a reversal on trend: And that is when the Fibo relocates. If you take notice at this time the Upper Fibo had relocated from its original high to a new lower high.

And that is only on the 2 hour chart.

Little by little you will come to recognize the Power of this system.

Some of you may not see it at this time with Fibo - but will see it the next time you reboot the MT4. This is one reason you always reboot after the 17:00 EST opening - to reset your data.

Mr. Dana, if possible next week maybe You could draw the description of fibo relocation example, as we might have not paid attention to it, to avoid any confusion ? thank You

What you mean about "Relocate", Master ?

Some of you will be looking for a reversal after 17:00 for your trading plans. Keep in mind the reversal is only with the swings and not the ROMAR trend. It will be awhile before that happens.

The original high for the downtrend was at 125.888 and is now located at the 125.553. That is what I mean.

The previous high I think depends on the width of you viewing screen. Those with a modern wide screen will see much higher highs than people on older equipment. My highest high in the current trend is showing is at 127.388 on my DB to 124.448.

Post your 2 hour chart.

Mr. Dana, so it is actually we must pay attention to SAR and DB changes as the first sign of reversal event, not ROMAR at all, ROMAR comes second, please correct my understanding. thank You

What did I say about the DB/SAR?????? It has nothing to do with creating a trading plan at this time.

goldtime,

This will be a completely different method of trading the system long term, not your daily trading plan, method you have learned so far.

i got too excited with the sar and db, assuming that this is the most accurate indication for reversal event