A-B-C-D Trade - page 293
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...and of course the combination of the 2 indicators can be used for trading breakouts.
Here are 4 recent dates of breakouts, when GAB gaps away from the HAMA_T3 candles:
Feb 7th 16:00 = SELL
Feb 14th 16:00 = BUY
Feb 20th 12:00 = SELL
Feb 29th 12:00 = BUY
Just remember that these type of techniques lag at exit. Can integrate other tools for TP, such as fib extensions per last post, or trail S/L.
Here's the 1-hour PSQ9 chart with short off the Mars 270-degree level of .9929, and entry 03:00.
Retrace plot: Low = .98715 High = .9978
Fibo fan same.
S/L just above recent high .9935.
TP1 at 38.2% fib .9906 (just hit)
TP2 just above 61.8 fib. Yellow trend line is where support occurred Mar 8-9th, price of .9891.
U.S. had Daylight Savings adjustment over the weekend. Main European countries to change Mar 25th.
Here's the useful link to DST and stock market hours of key countries.
Worldwide stock markets map shows the current open closed holiday status and current time for stock exchange- 24 hour format
As price on USD/CAD just reached the 50 fib, can move S/L to just above 38.2%.
1-hour Andrew's Pitchfork plot:
Handle = Mar 5th 15:00 high 1.32407
Upper corner = Mar 8th 20:00 high 1.32900
Lower corner = Mar 6th 17:00 low 1.31021
Add AML_v1-1 for interior fibs.
Price in channel between Lower_ML1 and Lower_ML2, with bounce down off the Lower_ML2 this hour.
Ichimoku for trend.
Further comments on USD/CAD. Pair reversed at the aforementioned 50% fib and round number .9900.
The attached 15-min chart uses session colors and adjusted U.S. Daylight Savings. Now the U.S. session opens at 13:30 and concludes 19:59. That uses the New York Stock Exchange hours, and can be found in the link just provided.
We added the Gann Activation Bars (GAB) in default red and blue, and the HAMA_T3 candles in green and pink.
The 10:00 bottom was the 2nd dip of BAJA bullish divergence (RSI set on 4-period). Plot fibs based on Asian High .9928 (same as aforementioned Mars 270-degree for short), and either Asian Low or Day's Low.
The 2 options for the plot Low as so close, it doesn't affect levels much.
The market chose to pivot at that 10:00 support level, which was support at 21:30. Price swung up and through the HAMA_T3 candles at 11:15.
Price pivoted low upon the 13:30 U.S. session open, but was contained by the HAMA_T3 acting as support. The subsequent extension was to the 161.8% fib during the 14:30 period.
This example shows how the trader can maximize day trading profits using fibs with smoothing tools, including use for support and S/L trailing.
If exit not accomplished at the extension fibs, price now dove through the HAMA and GABs turned red. This is the natural lag aspect. In this case a lose of about 20 pips.
Chart 1 is a 1-hour view of EUR/USD with GAB and HAMA_T3. Also added were MurreyMath1.0 and fibs using March 8th/12th high/low.
The aforementioned swing to the upside was seen in advance by recognizing BAJA bullish divergence on the 4-hour chart.
Price punched through the HAMA_T3 candles on the 1-hour chart during the early European session. We marked the 16:00 candle are one that gapped away from the green T3 candles.
BUY entry, including spread was about 1.3150. The peak during today's 02:00 period was near the 2/8th MML and 50% fib of 1.3183.
Because this entry scenario used a moving average type of indicator to qualify condition, a lag will occur. This eats away at the Reward/Risk.
In this case, the S/L was just below that 16:00 green T3 candle, and about 33 pips from entry.
This R/R was therefore only 1:1 thus far, if TP taken at the 50% fib level.
****
The 2nd chart is continuance of our weekly with GannBox_144. Plot's start point is low of June 6th, 2010 price of 1.1875.
Parameters for GannBox:
Prices (height) is 36000 for 5-digit broker and 3600 for 4-digit broker.
Times (width) is left at default 360.
Support at yellow 1/3rd horizontal line was where price pivoted up from 1.3077.
Before we get to today's activity, final comments on the March 12th breakout to the upside. We posted 15-min and 1-hour charts with the smoothing indicators for USD/CAD and EUR/USD.
The 4-hour BAJA divergence gave us a "peek around the corner". That's to say it is a leading indicator/tool, which can predict future turns. Both pairs had BAJA divergence.
As mentioned numerous times, the trader does not have to trigger off the larger time-frame charts. In the examples, the triggers were on the 15-min and 1-hour.
Attached is a EUR/USD split-screen with both time-frames. We labeled the 09:00 period on the 1-hour as the first candle protruding above the pink T3.
The 15-min chart on the left points to 06:45 and 09:00 candles. The 06:45 was the first to break through and close above the T3. Breakout of the Asian High was 09:15.
However, trailing the S/L based on the opposite end of the T3, too soon, lead to a stop-out during the 08:30 period.
"Trigger" means to execute an entry or exit. If you want to give the market more room to fluctuate, trailing on the 30-min or 1-hour can accomplish that.
This of course is part of money management.
***
The same charts show today's breakout of the Asian Low, which happen immediately upon the open of the European session.
The 15-min chart does a good job of illustrating initial break of T3 at 05:00, and thrust with more conviction at 08:00.
The 1-hour had obvious breach of T3 with large red GABs. Price stayed below T3 on both charts.
Options to assess TP levels include fib plots:
On 15-min from Asian High 1.31901 to largest pivot low of 09:00 1.31267. This produced 161.8 = 1.30880 and near 1/8th MML. The 200% fib = 1.30639, and same as 0/8th MML.
On 1-hour, plot from Mar 12th 05:00 Low 1.30772 and today's High = 1.31901.
The first extension is the 127.2 level of 1.30465. The 13:00 period pviot low came within 4 pips of this.
Here's what were were monitoring on the 30M EU with Moon at 45-degree intervals. Green horizontal trendline points to support on previous days.
The Moon 45-degree met the trendline at 02:00 this morning. This is also the 50% fib based on plot using Mar 8th/12th high/low. That was the obvious wider plot points since they were the big swing points.
This was an assessment of resistance, with results of using 3 tools merging in the same area (1.3180).
Here is a pic of the last few swings, with the 2 smoothing indicators. We drew vertical lines to point to entry points at pullbacks into the T3 candles.
The downtrend from the Feb 27th high had a pullback that surfaced above the T3 the next day 14:00, as depicted by the blue Gann Activator Bars.
This technique allows for new entry or rejoining the continuance of the trend, on the Feb 29th 08:00 pullback into the T3.
The more activity is more choppy. The only point where there was a discernible gap from the T3 was on Mar 12th 03:00 period, during the uptrend. This was a loser.
If we wait for a minimum number of T3 candle to set in for a trend, such as 4, it can filter out some of the false signals.
This is like trading moving average cross-overs. The price paid is the lag. We've addressed part of this issue with fib plots for TP.
For entry, along with BAJA divergence, dropping down to the 15-min as trigger can be a productive alternative.
The most recent swing up had BAJA bullish divergence, with the 2nd dip on the Mar 9th 12:00 4-hour candle period.
Switching to a 15-min trigger, we can see breakout above the T3 happen during the Mar 9th 19:45 candle, closing at .9899. Price fought the .9900 round number resistance for a few candles before a slow and choppy ascent.
You can use a 30-min or 1-hour T3 for support and fib extension for TP. In this case, price made a 138.2 extension (.9928) to the upside on Mar 12th 02:30.