boldtrader » Tue Apr 22, 2014 3:43 pm wrote:
James, thank you for your question. Whenever I get the chance to write on this topic, I greatly enjoy doing so. Steve or Bob, If this is not the proper forum, please let me know. I would like to use this opportunity to show how I am using 10.7/10.9 (Stochs) in association with natural events and conventional techniques.
I am not here to promote the use of these programs. I am merely showing how 10.7 / 10.9 can be used to compliment additional applications and sophisticated techniques. I do use these in my daily trading needs.
I have been using planetary cycles/events for about 7 1/2 years, and yes, I have very good results with them. (Disclaimer, the planetary applications are not my personal development but have been modified for my own personal use and are not for sale in their current form. They are available on the web with some research.) I use the Daily MM workspace for additional confirmations, particularly during periods where it looks like the markets may try to move around the circles or if price moves into the circles, the potential reactionary price levels and time periods when the reactions may occur. The combination of the timing of the two daily charts often create very explosive moves.
I am a professional trader and thus I am not about to post misc screens about what if's or maybe's or something I
think will work. I ONLY post on that information which I know or have had direct results or experience with. I am not here to waist anyone's time. I enjoy sharing, teaching and hopefully, to help others become successful. Anyone is free to read my bio and see that I am real and try to do my best to offer / provide information which I deem to be valuable. I am not a practicing coder, although I can code C++ and MQL4. I do have many thousand's of hours of charting time, research time and real trade desk experience with a top 5 Chicago Commodities/Futures/Forex Firm. With all that being said, I am still learning and do my best to remain humble in my trading and my quest to follow those who are successful. So, the more successful I can help other's become, the more successful I become. I am here because I enjoy being a part of a group with a lot of great folks who are a heck of a lot smarter than myself.
I focus on just a few select pairs, along with SLV. My primary focus / studies has been on GANN Theory, MM, Dynamic Linear Regression, and a few select aspects of planetary cycles. That is a whole separate field in it's own right and one I have not focused on. I focus on what works and I don't try to fix it. While I am sure there is probably a relationship with certain pairs and the planetary cycles you selected, they are not one's which I focus on. There are probably others here who are more knowledgeable than I. I do, however, know the patterns and events I have studied, and know them very well.
The astro field is large and one could be immersed into it for many years without success, or, they can do very well. I chose to be a bit more grounded and follow the works of WD GANN and do my best to become an expert (as best as one could be) in his theories (which included certain astro events) and combine those studies with others which I have mentioned here before.
W. D. Gann understood about human actions here on earth and how the masses affect the patterns of the markets. He believed that all are connected mathematically with the universe around us. I personally subscribe to this theory. Our moods can change based on just the color of the sky. Ever notice how a gray sky may bring you down, while a sunny day may raise your spirits higher?
Weather can affect the way we feel and act. We know that weather is affected by external influences. To a large degree, weather can be forecasted. News about forces of nature affect the market. People move the markets. Things around us, such as nature, move the masses. History shows that many of the extreme highs/lows of the markets occur during the Full/New moons. More babies are born during Full/New moons than any other time of the month. So why couldn't the EURUSD have peaks/valleys or continuation runs during certain events? which are repeatable based on Nature?
W. D. Gann further said in page 34 of his Commodities Trading Book, “Every commodity makes a top or bottom on some exact mathematical point in proportion to some previous high or low level.” I see this all the time.. markets will react to a previously known High or Lessor High and a previously known Low or Lessor Low.. History repeats itself as the Bible plainly states.
One of my favorite trading habits is to divide a range into 1/8's, and watch the reaction levels of those price points. Several of these price points are configured here within Bob's program, ie: xxx.00000 and xxx.00050; The price points I also monitor include .15, .35, .65, .78, .85 These are levels where I expect some type of reaction to occur (and they most often do).
I have learned over the years that is is better to focus on just a few rules, principles, concepts or theories which work, bank the pips or points, and let others have fun trying to figure out which angle or planetary cycle is better or works the best. All I need is just a couple key working concepts or repeating patterns to work with. From there and at least for me, it is everything I can do to stay focused on those trading actions which work.
As has been written, "There is nothing new under the Sun" -Eccl. 1:9"; So instead of myself using valuable time to try to recreate something which is and has been already proven to work, I do my best to learn to use what does work. Bob(and team) has/have proven, beyond a shadow of a doubt that the 10.7/10.9 (use of Stochs on HTF) work. In the beginning for myself, I only needed to follow. I needed to learn, and see, and understand and then Do. When I applied it as a complimentary utility to the 3 main workspaces I use including with the ATR Channels, it gave me even greater confidence to an already great system.
Without getting even more complicated, I have illustrated on the Daily EURUSD chart 3 main steps / conditions:
1) Historical experience shows me to look for reversal or continuation pattern events around the New / Full Moon. This is similar to looking backward on the ATC channels and learning how a currency pair moves in relation to it's historical Average Trading Range.
2) I look for a Cycle High Pattern (or Low ) to occur. This can be seen in advance. These typically occur +/- 2 days of a New / Full Moon.
3) Sto changing trend from one zone to the other. With sufficient experience, you can accurately forecast when the HTF or STO7 will change in advance.
The second workspace is a supporting workspace to the first. The first shows that the market is in a reversal down trend, confirmed with multiple utilities. The program allows me to anticipate potential time periods of reversals or continuation patterns. Based on what I determine from the Daily, I then move down to the H1 or H4, trading the H1 / H4 in same direction, unless there is a CT opportunity.
You have not have the benefit of knowing me or following me over the past many years of my trading career. In my short time presence here, I have shown many great examples of how to forecast price movement and the logistics of why price moves to certain levels. As the following chart demonstrates, the change of the Daily STO can be attributed to the Masses reacting to an event which was already planned in advance and could be forecasted with amazingly accurate results. The STO clearly shows the change and the subsequent results. Price action moved where it was expected.. then stopped to the very PIP where it needed to stop, then reversed. Once the STO7 with Daily moved to the upper zone (I refer to > 70 as UpperZone and <30 as Lower Zone) coinciding with price moving to the Price Point of Interest, completing the planned event, price then reverses.
The simplicity of 10.7 / 10.9 is remarkable yet provides amazing results across any system.
I hope this helps explain a bit more..
Cheers
