AUDUSD - Update

Position update on the AUDUSD, price seems to be making a correction.

Potential ABC ? Before moving higher?

AUDUSD - Possible 150+ Move

Looking at a potential 150+ point move on the AUD/USD live as of now.

It maybe in a position to complete a wave 5 high of a textbook, five wave impulse move.

I have identified 2 possible resistance zones at which price could reverse.

Wait and see.

Dynamic Price Zones

Look at this example on the GBPJPY from the 20th June to market close today, 1 Hour Data.

1. Fib the previous days high to low range.

External dynamic price zones are marked at the :-

1.27 to 1.34 + 1.55 to 1.61
-.27 to -.34 + -.55 to -.61 Extensions

Look how price has respected these zones for the best part of the trading week, lots of opportunity to trade and make some serious money here. Combine this with your other trading signals and you have some very powerful levels to project.

Try these Fibonacci levels for yourself and apply them to :-

• Any Time Frame

• Any Market

Also more often that not, price tends to reverse around these dynamic fib zones, Interesting Results!

EUR-USD Fib Level's - Intraday - 23/24thJune

So quick explanation of today's chart, back to the importance of fib levels.

2 sets of fibs have been marked up onto this 15min chart of today's euro/usd.

1. Previous days High to Low (Blue Bars on the Chart. Which gave the 1.34 Extension Level (pink line)

2. Toady's High to Low as you would have seen at the start on the London session. This gave us the intra-day fibs marked as (decision levels on the chart short or long) and the green -.34 + -.55 extensions.

3. And lastly the black 50% pivot level of the previous days range (high to low).

Sounds a lot of marking + levels, however once you read up on Fibonacci, you'll quickly pick up the terminology and more importantly how price respects these mathematical levels.

So onto my analysis :-

From the London open, price breaks the 50% + 61.8% intraday fibs which indicates short. What area's could you potentially take profit at if you had taken these shorts ? well look at green intraday projections, these two levels are hit bang on.

This area is also the 50% pivot from the previous days high to low (Black Line marked 3). From here price finds support and starts to rally back up through intraday fibs (78.6 then 50 finally breaking the 38.2% level. Indicating potential long trade ?

Well if you reversed and took this long where could you take profit at ? Amazingly enough look at the 1.34 extension from yesterdays trading range (pink line).

Price hits this target to the pip!!!!! Amazing huh, all from Fibonacci projections in the past, predicting where price could go.

Trading is all about high probability entries, limited capital exposure with pre-defined profit target areas.

However its easy to markup charts after the day is over, real money makers trade these situations live with real £££ on the line, this is where the human emotions of fear and greed kick in.

DT6 EOWave Scan's - EURUSD15 - Update

Interestingly enough after this analysis was performed during closed market hours (Sunday evening), the market gapped at the open 30+ pips.

It blew past the target zone for the Wave 2, was this due to closed market activity over the weekend gap trading hours ???

So I decided to keep watching anyhow, and to my amazement the Fib Levels were respected almost to the pip.

Moreover, all the levels had some significance in the Support + Resistance of this 150+ point move, knowing this before the event, was very powerful information indeed.

The only question is now how to put this info into profitable market entries with limited capital exposure.

DT6 EOWave Scan's - EURUSD15 Min

As explained on the chart itself, DT6's new wave scan routines have identified the end of a potential wave 2.

What comes after a wave 2 ? correct wave 3!!

And wave 3 is supposed to be the largest wave, so ill be keeping a close eye on this chart as the market opens this evening (Sunday 20th June) into Monday etc.

Updates to follow.

Power Of Fibonacci Levels

I have used Fibonacci levels before, although I have to admit not really digging to deep and sticking with the standard retracement / extension levels.

On the quest for knowledge, which includes going back to the old days of trying every new system under the sun I uncovered some hidden or should I say more uncommon Fib levels.

Like 119 Support, 80.9 Resistance, Buy + Sell zones, 134 Bull Targets + -34 Bear Targets.

Today I spotted a trade on the GBPUSD 15 min chart that I entered and exited within 5 minutes due to 'fear and greed' however coming back to chart later on that evening I was astonished to see my projected target almost hit (5 pips shy). Nice 3:1 risk Reward. Fibonacci is definitely something I will be keeping in my trading toolbox.

Trading Notes

Some notes from a book im reading, I though it would be a good idea to cut n paste them in here as and when I come across for future ref.

• The business of trading is to identify conditions with a high probability outcome and acceptable capital exposure. We will not be right all of the time. But we should be right most of the time, and when wrong, the cost is acceptable.

• The key is to identify if a market is making a correction. Why? If a market is making
  a correction, it should not take out the extreme that began the prior trend, but should
  eventually continue the trend direction prior to the correction and make a new extreme.

• There is one simple pattern guideline that is very reliable to warn if a market is probably making a correction and not a new trend to a new extreme. If a market overlaps a section, more than likely it is making a correction. An overlap is when a market makes a new low or high, and then trades back into the range of the prior section. (see chart exmaple below)

My Education Continues

As the title states 'my education continues'

Recently I've found myself straying away from my usual techniques of identifying high probability trading setups based on ABC patterns and looking for simplistic Elliot wave type patterns, usually a wave 4 to 5.

I don't know why I have stopped doing this because I was pretty successful, all I know is that I'm 'reverting' back to type of trying a new system every few days, getting bored after a loss or two then moving onto the next best thing. Also I haven't been documenting my loosing trades on the blog lately, which isn't good at all.

So it's back to school until I'm more confident, basically I have no trading plan, entry, exit etc. Which is a recipe for disaster.

Which leads me onto this next screen shot of a book I'm reading......

So don't expect too many trades posted up until I get my head sorted.










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