10.6 EDSEL

[nanningbob]

You know in my early trading years I traded the 15M chart and constantly got my brains beaten in. Then I gravitated to the 1H chart and did OK until I would get whiplashed on a regular basis. It was win win win clobber, clobber, win win win , clobber clobber. Finally out of desperation I went to the 4H chart and at least stopped the bleeding and finally became profitable. I wonder if I ever went back to the 15M chart I could now become profitable. Be interesting to find out but I remember getting headaches watching the screen all the time. Now I just set my trades and walk away. Dont know if I could go back to that kind of trading again. Anyway, if you find yourself doing good, open a thread and teach guys how to trade the 15M chart using them green and red bars and see what happens.

[sim2505]

I am a little lost, how can you be positive at +27 with aud jpy (for example) while you bought just above the DP and just after market dives ?? Almost CSS doesn't inside 20 lines.

It's maybe stupid for u but it intrigue me

thx for your answer

[nanningbob]

I am a little lost, how can you be positive at +27 with aud jpy (for example) while you bought just above the DP and just after market dives ?? Almost CSS doesn't inside 20 lines.

It's maybe stupid for u but it intrigue me

thx for your answer

I entered just above the 92.00 line. Anybody who knows my trading comments for over a year now has been sell JPY. I will continue this with every retrace. I look for it.

[dudest]

NOw the JPY sells are ready for trade setups. Just waiting for STO7 or DP crossing back into the DT.

Great call Bob!

Cheers

[fx800]

Bob, absolutely. Happy to post pic. As you know, it takes many tools to build a house, and like trading, one must adjust to the constantly changing conditions. I use 2-3 setups for different market conditions. Attached is an image of how I adapted Edsel to my current tool box for range trading. The image is of H1 setups made in direction of H4 only. Obviously counter trades can be made. However, as you know, it is always easier to paddle a boat with the main river flow ( I will occasionally paddle up stream but with a motor for support). One of my main concepts by which I subscribe is mean reversion of price back to previously known (broken) support / resistance levels and further supported with GANN Octaves. I had written about this concept in Active Trader Magazine, featured waaayyy back in July/August 2000 (LOL, a life time ago). The broken support/resistance levels are almost always hit without fail. Some just take longer than others to fill, but they do get there. It is an incredible phenom I have been trading for 14+ years. What Edsel does for me is to add clarity to trend and trade direction for trending/ranging conditions. I am working on an EA for this setup, but as you can imagine, the many conditions (cases) can be overwhelming. I am a trader first & second, programmer third, so my goal is to find a programmer to help me with the coding on this. Its not a priority as I manually trade these conditions, but it is on my wish list. I have found that for my trading habits, I prefer the m15 and H1 when the setup is met. When markets are trending, I move back up to the H4/Daily.

Again, thank you and the great team here for all your contributions.

Best regards

Hi BoldTrader

Thanks for sharing your trading strategy.

Any particular reason why you use the two particular fib ratios ? Why not 1.236 and 1.789 instead ?

peter

[boldtrader]

Bob, absolutely. Happy to post pic. As you know, it takes many tools to build a house, and like trading, one must adjust to the constantly changing conditions. I use 2-3 setups for different market conditions. Attached is an image of how I adapted Edsel to my current tool box for range trading. The image is of H1 setups made in direction of H4 only. Obviously counter trades can be made. However, as you know, it is always easier to paddle a boat with the main river flow ( I will occasionally paddle up stream but with a motor for support). One of my main concepts by which I subscribe is mean reversion of price back to previously known (broken) support / resistance levels and further supported with GANN Octaves. I had written about this concept in Active Trader Magazine, featured waaayyy back in July/August 2000 (LOL, a life time ago). The broken support/resistance levels are almost always hit without fail. Some just take longer than others to fill, but they do get there. It is an incredible phenom I have been trading for 14+ years. What Edsel does for me is to add clarity to trend and trade direction for trending/ranging conditions. I am working on an EA for this setup, but as you can imagine, the many conditions (cases) can be overwhelming. I am a trader first & second, programmer third, so my goal is to find a programmer to help me with the coding on this. Its not a priority as I manually trade these conditions, but it is on my wish list. I have found that for my trading habits, I prefer the m15 and H1 when the setup is met. When markets are trending, I move back up to the H4/Daily.

Again, thank you and the great team here for all your contributions.

Best regards

Hi BoldTrader

Thanks for sharing your trading strategy.

Any particular reason why you use the two particular fib ratios ? Why not 1.236 and 1.789 instead ?

peter

Peter,

Yes, specific reasons:
1) The Industry has been taught to accept 1.6185 and 1.272 as normal extension levels against a norm which may be used for potential reactionary price points. These price points can see be in advance and do have a tendency to be reactive price point levels. The specific number 1.6185 is a derivative of the Golden Ratio or Golden Mean. The number 1.272 is the square root of 1.618. This is a constant relationship which can be used on any time period. Yes, there are others that can be used, but with regards to markets moving to what are considered potential reactionary levels, these are the most widely used. Additional levels I monitor are 2.618, 0.786, and 0.618. One really huge example of the naturalistic tendencies of these numbers is the price of crude oil from June 2008 to December 2008 back when it hit around the $147.27 per barrel level.

Over the next following 6 months after hitting the high, Oil traded down to a low of $32.40. Doing the math, and give or take a couple dollars, the price of oil traded down 78.6% of the range of $147.27 to $0.00. I remember buying WTCrude futures at $33.56 level and strong advising the same with a projection forecast back north to the $102 to $104.00 level. Why this price level? It is 61.85% of the range between $147.27 and $32.40. Since that call, price moved back up to $114.18 High in March 2011. Ever since that period, I have applied these numbers to all of the trading techniques I use.

Since these are used for main stream industry, I monitor them to see what the "industry" may be doing and prepare for such turning points in advance. As I posted earlier, I am a huge student of Fibonacci and GANN Principles / Octaves and have been since early 1998.

2) Popular breakout strategies I use also include using 1.618 and 1.272 as target for range breakouts. My experiences show that if a market hits the 1.272 level and reverses without hitting the 1.6185 level, this indicates a strong reversal potential and thus trade accordingly. An example of this would be to measure a swing point Hi to a swing point Low. If a market were to drop to a new low and only trade down to an extension of 1.272%, this is an early indication of a strong reversal UP. These are typical patterns of natural occurrences on all trading instruments for all periods.

3) After using these for many years, I find it is not wise to bet against them. They just plain work.

Hope this helps.

Best regards, pips to all.

[Mike]

Bob, absolutely. Happy to post pic... Best regards

Hi BoldTrader
Thanks for sharing your trading strategy. Any particular reason why you use the two particular fib ratios ? Why not 1.236 and 1.789 instead ?
peter

Where do your Fib Numbers come from? I use the following attachment for reference. Mike

[aserschan]

interesting reads about the fib-numbers. really very interesting. thanks to all!

[fx800]

Peter,

Yes, specific reasons:
1) The Industry has been taught to accept 1.6185 and 1.272 as normal extension levels against a norm which may be used for potential reactionary price points. These price points can see be in advance and do have a tendency to be reactive price point levels. The specific number 1.6185 is a derivative of the Golden Ratio or Golden Mean. The number 1.272 is the square root of 1.618. This is a constant relationship which can be used on any time period. Yes, there are others that can be used, but with regards to markets moving to what are considered potential reactionary levels, these are the most widely used. Additional levels I monitor are 2.618, 0.786, and 0.618. One really huge example of the naturalistic tendencies of these numbers is the price of crude oil from June 2008 to December 2008 back when it hit around the $147.27 per barrel level.

Over the next following 6 months after hitting the high, Oil traded down to a low of $32.40. Doing the math, and give or take a couple dollars, the price of oil traded down 78.6% of the range of $147.27 to $0.00. I remember buying WTCrude futures at $33.56 level and strong advising the same with a projection forecast back north to the $102 to $104.00 level. Why this price level? It is 61.85% of the range between $147.27 and $32.40. Since that call, price moved back up to $114.18 High in March 2011. Ever since that period, I have applied these numbers to all of the trading techniques I use.

Since these are used for main stream industry, I monitor them to see what the "industry" may be doing and prepare for such turning points in advance. As I posted earlier, I am a huge student of Fibonacci and GANN Principles / Octaves and have been since early 1998.

2) Popular breakout strategies I use also include using 1.618 and 1.272 as target for range breakouts. My experiences show that if a market hits the 1.272 level and reverses without hitting the 1.6185 level, this indicates a strong reversal potential and thus trade accordingly. An example of this would be to measure a swing point Hi to a swing point Low. If a market were to drop to a new low and only trade down to an extension of 1.272%, this is an early indication of a strong reversal UP. These are typical patterns of natural occurrences on all trading instruments for all periods.

3) After using these for many years, I find it is not wise to bet against them. They just plain work.

Hope this helps.

Best regards, pips to all.

Hi BoldTrader,

Your explanation is most educational and many thanks.

peter

[boldtrader]

Bob, absolutely. Happy to post pic... Best regards

Hi BoldTrader
Thanks for sharing your trading strategy. Any particular reason why you use the two particular fib ratios ? Why not 1.236 and 1.789 instead ?
peter

Where do your Fib Numbers come from? I use the following attachment for reference. Mike

Exactly.. see your own image posted.

Also, 1.236 and 1.789 are not fibs, and not listed on your chart presented.

Cheers