A-B-C-D Trade - page 321
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EUR/USD met resistance today at the 127.2 extension to the upside 1.3139. This level coincides with the Mars 0-degree. Plot the FCT for diagonal support levels to the downside.
The HAMA_T3 also displayed on this 1-hour chart.
EUR/USD just arrived at the -68.6 (1.3062), which is the TP1 for the short from 1.3138.
The FCT plot's Point C was also at resistance from a wider plot (as better seen on daily) that used A-C Feb 24th and Sept 17th.
Intra-day FCT on 1-hour:
A = Oct 17th 15:00
B = Oct 18th 07:00
C = Oct 18th 09:00
The 31.4, which is one level below B (B = zero) was just touched during this current 18:00 hour. A previous bounce off of the Point B trendline occurred during 14:00.
This is a continuance of our FCT plot shorting off Point C, with the 1-hour view.
A = Oct 5th 14:00
B = Oct 11th 01:00
C = Oct 17th 15:00 1.31384 (Mars 0-degree) and 127.2% extension of AB
After meeting support one level down from entry at the Mars 315-degrees, price hit TP1 at the FC -68.6 on Oct 18th during the 18:00 period.
See how it adhered to that level's up-slope, prior to breaking down.
Bounce occurred off the next Mars level down (Mars 270) prior to touching the TP2 at the FC -50 (mid-channel) just now.
This example is AUD/USD 1-hour view, using indicator Gann_SQ9 for Point C resistance.
A = Sept 18th 02:00 high
B = Oct 8th 06:00 low
C = Oct 18th 09:00 high
Point C was a 180-degree (key ratio) move up from Point B as seen with the blue line. It was also a 78.6% retrace of AB, which we mentioned as ideal. BAJA Bearish Divergence evident.
The decline from Point C stalled at the 45-degree 1.03591 (brown) before breaking down. The FC -68.6 is near the 90-degree (1.03083) and sloping down.
This may or may not be reached today since it's Friday, but it is only 10 pips away.
Try to plot and assess recent price action from FCT on GBP/USD. Use a 1-hour chart.
Configure Gann_SQ9 indicator:
Angle = 45
ExtDepth = 35 (increase until swings you desire are captured)
Hints are:
The A-B leg was 180-degrees down.
Point C was 78.6% retrace of AB, but it doesn’t have to be exact. Point C happened to be same as Mars 90-degree (using PSQ9 indicator).
S/L just above the 88.6% retrace fib.
Figure out the reward to risk ratio for each TP level at -68.6, -50, and -31.4.
If you make the correct plot, you’ll see that price did not adhere to the TP levels, as it usually does.
Now, position fib channel tool’s Point C exactly at the 78.6 and at the same date and time as that peak. You should be able to see the precise adherence to the TP levels. We see this behavior on occasion.
We’ll post the pic of this chart later during the weekend.
EUR/USD just arrived at the -68.6 (1.3062), which is the TP1 for the short from 1.3138.The FCT plot's Point C was also at resistance from a wider plot (as better seen on daily) that used A-C Feb 24th and Sept 17th.Intra-day FCT on 1-hour:A = Oct 17th 15:00B = Oct 18th 07:00C = Oct 18th 09:00The 31.4, which is one level below B (B = zero) was just touched during this current 18:00 hour. A previous bounce off of the Point B trendline occurred during 14:00.
CORRECTION to the daily FCT plot.
Point A should be May 1st. The A-C trendline still provided resistance for the short off 1.3138.
This makes the daily plot's Point C a 88.6% retracement of A-B.
We also inserted MurreyMath1.0, and its 6/8th level is at the Sept 17th high.
This is the better daily plot because price made the hit to its -68.6 on Sept 30th.
Here is a Contract for Difference instrument "SPY", in the 30-minute time-frame for better view of normal candles' compliance. All times are GMT + 3 hours. MurreyMath1.0 (MML) also on chart.
A = Oct 5th 17:00 high 147.15
B = Oct 12th 18:30 low 142.57
C = Oct 17th 19:00 high 146.31 ( about the same as 3/8th MML)
Point C is just above the 78.6% retrace fib of A-B.
Nice adherence to the 3 interior levels -68.6, -50, and -31.4 en route down from Point C.
Using the indicator Gann Activator Bars (GAB) would show bars turning red after the hit to the -68.6, enabling trader to ride the intra-day down trend to the lower TP levels.
The low before the weekend is a 88.6% retracement of the B-C leg. Lurking end-of-day traders that work in this manner had pending BUY scalp orders there. The -1/8th MML at bottom pivot.
Attached is a 1-hour view of EUR/JPY with plot points:
A = Oct 3rd 07:00 low 100.705
B = Oct 5th 13:00 high 102.790
C = Oct 11th 01:00 low 100.140
Point C is a 127.2% extension to the downside of AB.
127.2 is the reciprocal of 78.6 (multiply a number by its reciprocal and you get 1)
These 2 ratios are the ones to look for when configuring Point C within the FCT methodology.
***
A-B = 54 bars/candles in distance
B-C = 84 bars
54 + 84 = 138
The square root of 138 = 11.75, rounded up to 12.
The distance from Point C to -31.4 = 12.
Nothing is 100%, try the larger triangles with this square root exercise.
The Square Root Distance (SRD) from Point C is an exercise and not a system or technique per se. It is a mathematical phenomenon within the context of our rules. Its frequency rate is unknown.
Here are 2 more examples.
AUD/USD 4H
A = Sept 28th 00:00 high 1.04731
B = Oct 8th 04:00 low 1.01483
C = Oct 18th 08:00 high 1.04101 (78.6% retrace of AB)
AB = 39
BC = 49
Total = 88 and Square Root of 88 = 9.38
The 9th candle down from Point C is Oct 19th 20:00, the last candle before the weekend. This area is just above the FC -68.6.
***
The 2nd chart contains 2 plots for the same 4-Hour EUR/USD chart. The wider FCT is in aqua blue color and the tighter FCT is yellow color.
A = Sept 17th 12:00 high 1.31708
B = Sept 30th 20:00 low 1.28026
C = Oct 17th 12:00 high 1.31384
AB = 58 bars
BC = 77 bars
Total 135, and square root = 11.6 rounded to 12. The 12th bar from Point C occurred on Oct 19th 12:00, and its low was at the FC -50 of the tighter FCT.
Tighter FCT plot (yellow) was conveyed in recent post of short opportunity:
a = Oct 5th 12:00 high 1.30704
b = Oct 11th 0:00 low 1.28241
c = Oct 17th 12:00 high 1.31384 (127.2% extension of ab)
ab = 22 bars
bc = 27 bars
Total = 49 and square root = 7
The 7th bar from Point C was Oct 18th 16:00. This bar’s low was at the FC -68.6.
Continuance of our last 4-hour FCT plot on EUR/USD.
The Gann_SQ9 shows the last 3 swings, with the last downturn to 1.3012 on the Oct 19th 12:00 bar. That pivot low also intersected the FC -50.
The rise since has met resistance at the previous swings' 202.5 and 45-degree level (same) 1.3080 which is marked by the green line. Diagonally, this intersected the FC -68.6 from the tight FCT plot.
This type of recognition of S&R will lead to trade opportunities, such as this SELL that has thus far gained a maximum to 1.3040 for 40 gross pips (22.5 degree).
S/L options included the next Gann_SQ9 level above entry, of 1.3097 + cushion which should place it just above round number 1.3100.
Gross reward/risk = 40/20 when trading back down to the Gann_SQ9 22.5-degree level 1.3040.
The FC -50 is sloping up and therefore does not benefit trader as time elapses.