I do
I have his ebook. I printed the whole thing with two pages per page to save paper and read it cover to cover twice. This is why I think it works:
You can't change the market and neither can I. Even a federal reserve bank would have a tough time really moving any major pair for very long. Every trader is looking at a different chart and different time frame. You're looking at the 382 retracement on the 15 min and I'm looking at the 618 retracement on the hourly. They are only about 20 pips from each other. The weekly pivot happens to be about there too and the daily fib resistance 1 so another guy is just a pivot trader looking for a bounce. All of us are making decisions at this point. A 382 retracment by itself doesn't psychologically have enough weight to change the entire market direction. But 3 or so decision points in the same spot do because as you add decision points to a certain spot, you draw more and more traders into the market at that area. They are all making trades about there, for different reasons. DiNapoli calls it confluence support. Or K1 or K2 depending on where it is. So in theory, if there is an indication the market will rise, wait for a drop to a strong K area, buy with a SL hidden under the strong K area just below and take profit at 618, 100, or 1.618 extension level.
The way Joe describes trading in his book will not work perfectly with forex because he did not consider the 50% or 23% lines to be relevant but I think they are and he didn't talk about fib butterflies or pivot points, which may not have been in use too much when he wrote his book. I think it's good to read the book, get his principles in mind, see how Sive applies them and get a feel for how to apply them yourself. Any greater combination of S/R in a small area is a good spot for a turn around. What everyone is viewing as S/R tends to change. I've tinkered with using his MA's in an EA, even having a custom EA written but it doesn't seem to work, at least not how I applied it. Good luck.
