European Forex Professional Weekly 2009-12-28

Sentinel

Sergeant
Messages
153
I think that I do not uderstand it correctly -

"So, ABC's should be selected in context with the current reaction and focus points. Right? Since C is below A, a new picture had evolved and we should make our analysis with the new focus and reaction points."

It seems that you try to complicate the overall picture. Try to use a simple rule - Thrust - retracement - expansion. So, usually the beginning of thrust is an A point, the low before retracement B and the high of retracement C.

Looks like focus numbers are correct.

Sorry, I mean that while calculating DiNapoli Expansion points we should take into consideration the latest focus & reaction set we are experiencing.
 

Sive Morten

Special Consultant to the FPA
Messages
16,303
Sorry, I mean that while calculating DiNapoli Expansion points we should take into consideration the latest focus & reaction set we are experiencing.

Well, sometimes it's possible, but this is not a rule of thumb. DiNapoli method in general is based on a momentum trading - "it's all about the 'C' point identification" and entering. While you are great in C point identification and enter technic - you will be successfull.
It's the most important and sophisticated - identificate C point, and enter correctly.

P.S.
Look at DPRO, 1,4240 not a bad stop ah? Besides, if it will break it, we will know that it's a DPRO Failure. But for now, all is possible, daily trend is up...
 

Sentinel

Sergeant
Messages
153
Well, sometimes it's possible, but this is not a rule of thumb. DiNapoli method in general is based on a momentum trading - "it's all about the 'C' point identification" and entering. While you are great in C point identification and enter technic - you will be successfull.
It's the most important and sophisticated - identificate C point, and enter correctly.

P.S.
Look at DPRO, 1,4240 not a bad stop ah? Besides, if it will break it, we will know that it's a DPRO Failure. But for now, all is possible, daily trend is up...

Is the DRPO still valid? I thought that it is over since you said that OP target was reached.
 

Sive Morten

Special Consultant to the FPA
Messages
16,303
well, I said that it's almost reached ;)
I think that we will have additional upmove. Daily trend is bullish, so I expect that 1.4650we can reach. But this is my own expectations. Besides, I expect that payroll will be worse than expected. Today will be new research - I've described situation in detail there. The context is a bit complicated -
1. Weekly confluence support
2. DRPO
3. Daily and Hourly trends turn bullish
4. W&R of 0,618 DRPO support
5. I expect weaker payrolls.
So, for me it's enough to try trade it.
 

Sentinel

Sergeant
Messages
153
4. W&R of 0,618 DRPO support

Well, Sive even though I have read it many times from the book, I am not sure that I have clearly understand Wash&Rinse directional signal. Could you please explain me W&R in your own words when you have spare time. Is it a type of stoploss clearance? If it is, how can such a movement contribute to a conclusion defining us the direction of the market?
 

Sive Morten

Special Consultant to the FPA
Messages
16,303
Yes, Sentinel, you're right about W&R. DiNapoli did not pay much attention to this very very important signal.
For me, it's not a separate signal (but you can use it as it is also), but W&R is an imortant confirmation of the level.
When market break level and then make return move (better if it happens fast and return move has a signs of thrust) - this is W&R. It's simplier to see than describe.
Just look on hourly chart and price behavior around 0,618 of double repo support. This is W&R. If I find some another examples - I will post it.
How it works...
Well, when market stays above the level for a some time, new participants enter market on buy side at this level with s/l below it. It's not nessesary, that it should be Fib level. It can be a common technical support and resistance. Market makers see these s/l orders. When value of orders become sagnificant, market-makers break the level with huge selling (usually on thin market or during data release) and close their positions by purchasing of the s/l selling orders. So the profit of m-makers - difference between price above the level and s/l sell orders. When m-makers has closed their possition and there is no selling orders under the level - price makes fast return up and starts to rise.

hope it helps

Sive
 
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Sive Morten

Special Consultant to the FPA
Messages
16,303
One more question. How to understand the difference between W&R and RRT? They look similar..
Well, if you see 2 bars in opposite direction - they are not necessary RRT.
RRT should not have any price action from the left side for some time.

Sometimes W&R looks like RRT, but it links with DiNapoli level and W&R can be anywhere - there can be price action from the left.

It's difficult to explain with words, better to see it.
 
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