The Paradox System

I found this thread Friday night, and currently starting wayyy from the beginning so I can actually learn how the whole system works, although Shinny seemed to have grasped it almost from the start, which was exceptional. So far, The Paradox seems like a well oiled machine, each part working smoothly with each other. Looks like I will be filling up an entire notebook with notes. All I know is, this journey in learning to interpret what the Paradox is telling me will be very interesting, much appreciation to Dana for sharing.

Hello Traders and Blessings:

This tutorial will be long and in sections as FF allow only a number amount of screen shots for each posting. This tutorial is about the DB, SAR, Fibo, and the Divergences. All four works together for entries and exits. I used a simulator taking screen shots of each scenario of the four elements. The problem with using the Strategy Tester for the simulator is no offline charts. Which means I had to use the H1 chart for the simulator. So I shorten the spread two bars in getting a more realistic scenario with the Fibo for the first 2/3rd of the screen shorts; and the last third with the right spread.

At this time let me say something to those trader that are not using the right set up for the Paradox. To begin with you must have a spread of 39 bars showing with a spread of 40 in order for the Fibo to work properly. This means you have to have a minimum of a 1600 x 900 resolution on your monitor. If you do not have this resolution then you are fighting a losing battle in trading the Paradox. If you are using a laptop in learning this system you are again; fighting a losing battle. In order to become a professional trader you need the right and correct tools for trading. In other words there are no short cuts in becoming a professional. Those with a monitor that is not susceptible then I suggest to reach deep into your pocket and find a way to buy the right monitor. That is the very first thing you need to trade the Paradox correctly. With that lets move on.

The market is 80% Consolidation; 10% Trend; and 10% Economic News. The consolidation period works in many variables but most of it is ranging from high to low and low to high (support and resistance). In this scenario the market will produce higher/highs and lower/lows; or higher/lows and lower/highs.

You have three types of ranging:

 

1. The ROMAR trend ranging.
2. The BB ranging.
3. The Daily ranging.

The ROMAR ranging mode usually happens when the Daily begins its turn from a trend going into a consolidation. With this scenario we will use the trend we are in now with the Daily at the top of its trend.

A week ago Sunday we had ROMAR below the BB and with a gap to the top of the Daily Fibo; which had placed the market in a ROMAR ranging mode. This means the Fibo will play a critical role in the ranging with ROMAR going higher/high for the indicators.

The BB ranging is when the BB's are flat lined and the Market bounces off the BB. Now if the bounce returns to EMA you then are turning back into the trend. If the bounce returns to the opposite band then you are ranging until the breakout.

The Daily ranging is when a lot of traders give up. The reason is because the ranging is unpredictable. This is when the Daily goes into consolidation from a trend and does not turn into a new trend but goes sideways. Going sideways is when the Daily flat lines and can stay that way for weeks or even months. The longest flat line I have ever traded in lasted over 3 months.

In a ranging consolidation is when the DB and the SAR comes into reality. This is also when Divergence plays a critical role for entries and exits in this ranging mode. The Fibo becomes your support and resistance for ranging. Keep in mind this tutorial is about ranging and not trends.

So lets move on going back to last Sunday with the Gap and go through the whole week:

With this first screen shot you have the opening candle shoot up to the Fibo; and on the next bar readjusted for the down at the 23.6. You have the DB/SAR attached with the both standard and hidden Divergence. That opening candle was entry. Because of the spread you could had waited on the next H1 open bar.

On this next frame you have the SAR attached to the bottom bar at the 50%. Now you still have the DB attached on top which means the next attachment is on the bottom,

You have a retrace to the Parabolic as it had been eliminated as support with the White crossing.

It continues south for the DB attachment with the SkyBlue Divergence and below the 61.8 with profit taken or entry going north. And traders do not get greedy. Take your profit and wait until the next day.

Next frame you have market going north with both DB and SAR attached on the bottom. Next attachment is the SAR.

On this frame you have a situation with the Parabolic RESISTANCE. Always remember what I had said about the POWER of the parabolic. The parabolic will stop you in a heart beat. Because of this Parabolic it can very well continue south for the bottom of the Fibo and the reason; the SAR did not attached and both DB/SAR will move to the next bar that gets lower/low. PROFIT IS TAKE AT THE PARABOLIC.

On to the next post

On this next frame you have the Market going lower/low with both DB/SAR moving to this bar and both Divergence attached. You also have both upper and lower BB's compressing for a flat line. This being an H1 chart do not pay attention with ROMAR.

On this frame and take a moment and see the big picture. The big picture is telling your the trend is down with the 4 Horsemen and the power of the Parabolic. You also have an open bar in no man's land between the 61.8 and the 100. You also have both upper and lower bands opening up for the continuance of the trend.

This next bar is showing the strength of the 4 Horsemen for the down.

This frame is showing lower/low again and will end at (or just above) the Fibo.

This frame is showing the ending just above the bottom of the Fibo. At this point you have a decision to make. You can either enter for the long or wait for the consolidation of the new trend and make entry later. What I would do is take entry; set my SL 40 and TP 40 and walk away. And when I come back I would have my 40 profit. There is no way my 40 SL would be hit because I am at the bottom of this Fibo.

OK traders this will get you started and will do as much as I can during the week and post more for the all of last week.

Thank you Dove for your time and teaching. A lot to study after work this week, Im looking forward to it. Im really starting to see how every piece of the system works together in telling you the story of what is happening in the moment.

OK; moving on with this posting.

On the last frame you seen you had a choice of taking entry or to wait for the next entry because of the trend being down. You are at the bottom of the Fibo and taking an entry is a wait for the consolidation. Waiting for the entry is also a wait for the crossing of White with Purple..

On this frame you see the consolidation working above the Fibo support 100. Again; do not pay attention to ROMAR as this is on the H1 chart. The H2 ROMAR is still below in La La Land.

On this next frame you are still waiting on White crossing Purple..

On this frame you have the SAR at the EMA resistance. The question is: what is the risk factor for entry going either way.

Well lets take a moment and think about that.

First information you are receiving is being in consolidation for a reversal. You have EMA and the 61.8 of the Fibo as resistance. You have Purple as support. So any trade going long or short is out of the question What you do is be patient and wait for the right opportunity.

The right opportunity was with the retrace to the White/Purple crossing in going long. You have the SAR waiting on the DB and on this frame you have an open above the Parabolic for the continuance of the uptrend.

I took this picture because you do not see this often with the DB detaching from the SAR, This happened because of how the Divergence attached. Just part of the Matrix. But as the bar continues up the SAR will reattached.

Here you see the reattachment. Now: what do you see here? The question is very import because what you see will also tell you where this movement is going to end. So without cheating take a guess and on my next post I will tell you where it will end just by what the Paradox is saying.

Alright Traders: To give the reason is because of the upper BB being inside the Fibo and it is flat lining for a target of taking profit. So lets move on and see what happens:

I already know the target and in the trade going long. I will place frame from frame as it progresses.

We have the EMA and the Parabolic strong in the trend.

Smooth and EMA holding the trend with a strong Parabolic trend.

Purple sliding over both White and Smooth for an EMA slider.

EMA in the Slider holding support.

SAR made a small break for EMA support and continue north.

Broke for the band and profit is taken

Retrace to the 23.6 and flip the Fibo for the south.

Going back to the last frame below there is a major problem and that problem is the trend. It is not showing a reversal with the Horsemen. Plus EMA and the Parabolic's is showing still showing a strong uptrend. Seeing this in the moment is telling me the trend up is not done.

This next frame is showing the HIT on EMA support and up it goes.

The upper band opens and the trend is still very heavy

And this frame is showing the entry going north with the HIT on the upper band. Plus it got above the 0 Fibo resistance.

This bar is showing the retrace off the BB and also showing the power of the Paradox.

The Fibo reset itself and now will begin a process of turning.

SAR hit and waiting on the DB.

The DB and profit taken.

On this post I will show each of you the power of the Fibo and the reason why a spread 39 showing with 1600 x 900 resolution is very important.

Take note of on this frame where the DB stopped. It stopped on the 50% Fibo acting as support.

The Market in consolidation for a return trip up. But again you will encounter a problem with the downtrend Parabolic.

On this frame the Parabolic is ready to be hit.

I moved on to show something that you probably had never seen. Instead of hitting the Parabolic it retraced for the turn and there is a reasons for this scenario. This reason is because the progressive sync must follow through with both the DB and SAR. The SAR did not attached at the Parabolic for a turn back into the trend. So to compensate the power of the Paradox. It moved on north with a Parabolic flip and place the Fibo into a retracement mode so both the DB and SAR can attache at the 23.6 back into the downtrend.

The market is moving for the 23.6 retracement with both the DB and SAR attached.

It hit the 23.6 and heading south with Divergence.

And now the Fibo must recover from its retracement and heading for the 100% with both the DB and SAR attached together with Divergence.

And the Fibo had fulfilled its progression still showing the hit on the 23.6 and at the bottom of the 100%. This does not happen often but if you ever do witness it them remember this post.


Good night everyone and be back some time tomorrow. Trade well and God bless everyone.

Hello

Take your time, read through the thread, take notes and you will get it. There are weekly summaries from the beginning in the files section which may help.

Regards
Shaun

I'd just like to say thank you to Dove and Shinny for there guidance, much respect to you both : )

I was hoping that someone would had seen the Daily after all these postings and seen what was going to happen with the SAR attached on Friday. But no trading plan on the Daily SAR and no mention of it. So lets move on.

From this post on I have the H1 spread set properly with a 40 spread and 39 showing. When I go through the process and scenario take note of the accuracy the Fibo plays for entries and exits. On this frame we have the market at the 0 Fibo and green for an uptrend with Divergence for an entry going long.

You had the market pushed lower/low about 7 or 8 pips and below support. So don't get excited and just be patient,

The market hits the 23.6 and resets itself with the SAR at the Parabolic. You have the upper BB inside the Fibo and is the target for profit.

You have the SAR move into no man's land and stops without Divergence.. Just remember you are in consolidation with the H2 ROMAR in the uptrend. What you are looking for is the DB with Divergence hitting the upper band.

You finally got Divergence and you take profit. But: the BB was not hit and trend is still up. So lets see if it does continue up. Just remember to always take profit with Divergence. Do not ever get greedy.

Moving forward we see the market had balanced with a slider below Purple on the continuance of the uptrend, This being an uptrend we may see the SAR hit a Parabolic for an entry back into trend heading for the 100%.

And so be it; SAR for entry back into trend.

A slider for the top side of the Fibo.

The market is trying to turn but the SAR is holding to top the market by moving to that bar.

EMA in a slider as support with the help of the lower BB.

EMA and the Parabolic's are pushing the market to the upper Fibo.

And Bingo!!!! Target hit.

As for myself; there is no greater challenge on earth then beating the market and have the greatest system in the world to do it.

If you traders study ever frame that I post and listen very carefully in what I am saying for each frame; you will be able to do the same. The power is in the Paradox and all I am doing is repeating what the Paradox is saying to me.

Thank you Dana and Shaun for everything that you are posting. I am still working on understanding the paradox in the background, going back to the beginning of the thread and re-reading everything. I am still making trading plans every day, and when I think I'm ready I will post them. The SAR has been a particular difficulty, so I will study these recent posts with great interest. Please know that your efforts are very much appreciated.

On this frame you can see the hit on top of the Fibo with both Divergence. That was an automatic turn on the next H1 bar and entry is made.

SAR attached waiting on the DB

DB attached and your 40 trade is in profit. That was pretty easy so you walk away from your profit and return the next day. Again; never, ever get greedy. So lets move on and see what happens.

You have the the lower BB in the Fibo with a Parabolic flip. That Parabolic flip tells you everything. It is telling you the bottom of the Fibo will be hit.

You still have the market moving south and now with the bands flat. Common sense tells you to get out while you can with flat bands. But also; you have a beginning trend with the 4 hoursemen.

The bar continue south and the bands open up for the trip to the bottom.

On the same bar it continues south and pierce the lower band. This bar was more likely on an economics news with the USD being at 10:00 A.M.

On the next bar showing it wants to retrace. But it will not retrace because you are now in trend with the 4 Horsemen

It moves on from retrace for the lower Fibo.

It pulls back again for Purple with the 4 Horsemen strong in the trend.

And finally it did exactly what the first Parabolic flip said it would do and hit the bottom of the Fibo

On all these frames from the first posting (with my descriptions) I gave detail information in the moment and accordingly with the rules for each scenario. This isn't being lucky or thinking about it and trying to analyze each moment. It is about understanding with wisdom and applying the rules for each scenario. Maybe now you are beginning to understand why this is a 6 month training prrogram.

More later.

What I have been showing you in the moment with these postings is known as the ROMAR ranging. Even though they are on a 1 hour chart you can match the frames with the H2 and see how much more they are define on the H2. In ranging the Fibo plays a very critical role as for support and resistance. From top to bottom and vice-versa. This type of ranging is when swings play a role also. The only problem you would have is learning how to recognize those swings. And I admit; that will take time. So take your time and learn. Listen to what is being said in what I had posted and what the Paradox is saying in those moments. If you listen carefully you will also hear the rules being applied.

This statement is on the bottom of Shaun's postings: “Nobody can be told what The Matrix is. You'll have to see it yourself”. And his statement is referring the Paradox. What I have been posting on the ranging mode from last week is showing the Matrix in a whole using the DB and SAR with support/resistance, trend swings, and the 4 Horsemen. It all comes together in ranging. Study and learn and one day the light bulb will turn on.

Getting close to the end of last week with this tutorial so more later.

On this frame you see the bar pulling back for the reversal going back up. And how do I know that? Because the market got below the Fibo 100% support. So entry was the hit on the lower band as close as you can get to the bottom. In many of my postings I talk about trading from the bottom to the top and from top to the bottom. And basically this is what I am talking about in using the Fibo.

The Fibo flipped and showing a return trip back to the top.

Market got above Smooth and the SAR appeared, and will continue high for the DB. Remember; we going from the bottom to the top.

Higher/high with the SAR..

OK it looks as though the ranging is ending and swings are working. The reason I say this is because of the previous SAR breaking away from the DB then hit the uptrend Parabolic and return into the trend; showing on this chart below. So looking at the H2 with the hit on the H1 ROMAR is showing the hit on the H2 Smooth and EMA, With these hits on resistance it is time to take profit.

And here you go; reversing back into the Parabolic trend.

Take a look at this frame very carefully. You have the SAR attached with the Parabolic, EMA and White/Smooth in a down trend with the Hidden Divergence. And what the Paradox is saying is the bottom of the Fibo will be hit to reconnect with DB.

On this frame you get another SAR attachment at EMA resistance. On the H2 you also have the hit on EMA with the Parabolic down. Resistance has the power so on down it will continue.

And bottom it hit with both DB and SAR back together with both Divergences attached. This will now turn and head back up. Support had been hit.

This is the last of the tutorial from Friday of last week. The last frame from above is showing the hit on the bottom of the Fibo from Friday morning around 4 am EST. This small snippet below is showing the Daily chart with the SAR attached at the same time at 4 am Friday. At that time you had all three charts with the SAR attachment going long. What This is telling you that all three chart will be traveling north and get above the Fibo resistance after opening on Sunday.

This frame is showing the SAR attachment on Friday morning and profit is take and your day and week is done.

This is showing the end of Friday showing the trend up on the H1

This is a snippet of the H2 closing Friday with the ROMAR trend and the 4 Horsemen up. With Sunday's opening I was in the trend and took profit at the top.

I know most of you appreciate what I have done here for you and I thank you. But I am not the one you need to thank. It is our Lord above that has everything to do with the Paradox. So thank Him and give Him His glory.

I know there will be questions and feel free to ask. But before you do I will make a demand on all of you. When you ask your question you will post a chart regarding your question with drawings or arrows showing what your concern is. And that chart MUST be right according to the set up on the charts. If it is not then your question will be disregard. Your charts must look exactly like mine, Shaun's, and Chad's. We will know longer put up with short cuts. If you want to learn then let's do it right.

Everyone take care and God bless us all.

Dana

Thank you very much for this tutorial. It is very useful and much appreciated.

Guys - its 3372 words, about 75 images and 32 pages (in word.doc).

A lot of work.

If anyone would like or find it useful, I have the whole tutorial in a PDF document that I can upload in the files section.

Regards
Shaun

yes its very helpful and alot of work! thanks for that

Shinny please upload the pdf

Ok

Here is the Tutorial Dana has kindly done, in PDF format. Now theres no excuse not to read it - on the bus, train, plane, in bed, in the bath, wherever.



Regards

Shaun