Hi Sive,
OP = B-A+C in our current situation,
B=1.2054, A=1.2164, C=1.2125
Are the formulas different between an uptrend and downtrend?
downtrend = A - B + C, uptrend = B - A + C
Thanks,
Jim
Hi, Jim
When you calculate expansions to downside, you should substract AB distance from C, because expansions at downtrend should be below C. This is obvious. So, OP at downtrend equals (B-A)+C. With your numbers OP=1.2015
For uptrend formula is the same. But due to point B that is higher than A, (B-A) is a positive number. When you surplus it to C point, you'll get OP that is above the market.
would someone shed me some light here? I don't know what ABC that Sive mentioned above is? is it the entrance based on breakout at B? is it the same as 123 concept? if yes, how about the objective target calculation?
Hi An2,
look at the chart - ABC - are marked there and they mean a market swing. Usually AB - initial thrust, BC - retracement from it. Using this numbers we can estimate Fibonacci expansions 0.618 (COP), 1.0 (OP) and 1.618 (XOP) that is our targets. OP means Objective point, COP - contracted OP, XOP - Extended OP.
Hi Sive,
Thanks again for the excellent updates. I have a question on the above. You mention that retracement should not start until the OP is reached at 1.2265 but the OP is down at 1.2165 on the chart? Is that a simple typo or am I missing something?
Thanks,
Chief
Hello Chief,
Look at hourly chart carefully - see, there is another ABC just in the beginning of the chart. This is an ABC that we're talking about. this ABC-
bottom patern gives us OP=1.2265. More recent ABC - is for calculation target of retracement to enter long, because it ABC-
top
Morten sir, doesnt it better to put those XOP, OP, ABC and some others abbv. (plus reference links about Dinapolli if any) on your every posts? Thus it will reduce new comers asking same questions over and over which in the end annoy you. I'm not blamming new comers here. They're keep coming since your posts gave them very good insight about the market. It's just I dont want you to stop posting because you answer the same questions over and over
Well, there are too many abbv, to describe all of them. Besides, guys, you will be around, willn't you? I think that you swim fine in all this stuff already. Always somebody can explain basic things.
I see very important "wind of change" - debt crisis start spreads across the world, not only Europe - just see Japan's new prime minister speach about 200% GDP debt... This can lead to fast yen falling to 110 first target and more important - rising power of yen crosses, which can change most pairs technical...
What do you think about?...
Hi kamuta
Hm... In fact, I've wrote about the spreading, but basically in Europe, and I think that the next country, which will fall under scrutiny will be UK. (besides, Spain Portugal etc.)
Concerning Japan I think that more important is an export contraction due to recession. Besides, Japan one of the greatest holders of US Treasuries, so I do not think that 200% GDP debt is a new stuff.