FOREX PRO Weekly, December 20-24, 2010

[ochills]

Good work Sive. thanks

Hi Sive,
compliment of the season in advance and to all FPA members,staffs and all forum members.
Pls I have 4 questions.
1. Can one use only Gartely AB-CD for entering and exit of a trade? if yes how can this be done?
2. Presently am reading Joe Dinapoli ebook. pls how can I determine the logical profit objective(M) i.e an exit point for profit as identify by Dinapoli in his book.
3. Base on your experience in the market can one enter the mark as soon as a double repo is formed or wait for retracement b4 pulling the trigger. and does this apply to BB & W&R
4.finally, pls what is fibnodes and daily confluence point and how can it be determine.
thanks in anticipation for your reply as usual.
thanks.

 

[Sive Morten]

Hi Sive,
compliment of the season in advance and to all FPA members,staffs and all forum members.
Pls I have 4 questions.
1. Can one use only Gartely AB-CD for entering and exit of a trade? if yes how can this be done?.

Well, I prefer not to use only AB-CD. It could be done in general, but usually, I use AB-CD in some larger-term context or for confirmation of some areas.

2. Presently am reading Joe Dinapoli ebook. pls how can I determine the logical profit objective(M) i.e an exit point for profit as identify by Dinapoli in his book.

Well this topic is discussed in 3d part of the book. IT will be better if you reach it step by step. Just follow the book development.
But I suppose you're talking about the chapters, where he talks about different types of MA's. In this context it's not so important, because he just describes the difference btwin displaced and non displaced MA's, just continue to read.

3. Base on your experience in the market can one enter the mark as soon as a double repo is formed or wait for retracement b4 pulling the trigger. and does this apply to BB & W&R

Well, both ways are acceptable, depending on situation and time frame. If it is monthly chart or weekly - better to wait for retracement. If it's hourly chart, then, possibly you can enter just after confirmation. this is just a slice&dice in fact - if you wait for retracement, you'll get better price, but lower probability to fill. If you just jump in - you're in, but take a risk of retracement. The major things that you should control - the level of the risk, and where are you in and where are you get out.

4.finally, pls what is fibnodes and daily confluence point and how can it be determine.
thanks in anticipation for your reply as usual.
thanks.

The same answer - read book gradually, this topic clearly discusses there in 3d chapter.

 

[Jyotiprakash Pal]

Thanks Sive Sir great analysis ...

 

[cosmos]

Sive, I haven't been receiving emails when your new analysis and videos go live for about a week now. Are they still being sent out?

 

[Ahmed El-Shazly]

Gbp/jpy

Hi Sive-
I want your opinion about two harmonic patterns in GPB/JPY. First is a Gartley Buy Pattern and the other in Butterfly.

Can I have your feedback

 

[Sive Morten]

Hi Sive-
I want your opinion about two harmonic patterns in GPB/JPY. First is a Gartley Buy Pattern and the other in Butterfly.

Can I have your feedback

Hello, Ahmed,
They both look nice.

 

[Ahmed El-Shazly]

Hello, Ahmed,
They both look nice.

The issue is that they are contradicting.
It is either to buy now considering a butterfly (playing the CD leg)

or
wait for Gartley CD leg to complete which will negate the butterfly.

What do you think?

 

[Sive Morten]

EUR/USD Daily Update, Tue 21, December 2010

Hello everybody,
yesterday market has shown very shallow price action to the downside and almost hit 0.786 Fib support from the recent swing up on daily time frame.
Currently in turns to retracement higher.
On 4-hour chart we see stron area of Confluence resistance at 1.3245-1.3267, that also includes a weekly pivot at 1.3265. It has not been touched by price yet, and you know that pivots trade by the market in 70% of cases. So, I think that this area will be crucial for further price move. But my opinion still, that bears have more chances to hold the market, especially if we take into consideration daily price action.
On hourly chart we see the same picture as on 4-hour chart. But hourly gives us small ABC pattern with 100% Fib expansion target precisely in area of resistance. This creates an area of Agreement.

That's being said - 1.3245-1.3265 the area where market is going and market response there will be crucial for further price action.

 

[Sive Morten]

The issue is that they are contradicting.
It is either to buy now considering a butterfly (playing the CD leg)

or
wait for Gartley CD leg to complete which will negate the butterfly.

What do you think?

))

Ok, you've discovered what Butterfly is... The butterfly, in fact, is a Gartley AB-CD failure.
If you trade only on ABCD/butterfly patterns, so, I suppose you will have to trade both of them with reasonable stop. (if butterfly fails and market will continue to form AB-CD)
If not - use another context - trend, higher time frame analysis, look at price action. For example, if you'll see strong thrust bars, that confirm butterfly pattern, possibly you should trade it. Something like that...

 

[pckeys]

))

Ok, you've discovered what Butterfly is... The butterfly, in fact, is a Gartley AB-CD failure.
If you trade only on ABCD/butterfly patterns, so, I suppose you will have to trade both of them with reasonable stop. (if butterfly fails and market will continue to form AB-CD)
If not - use another context - trend, higher time frame analysis, look at price action. For example, if you'll see strong thrust bars, that confirm butterfly pattern, possibly you should trade it. Something like that...

some would suggest that the 618 and 786 b point of XA can be the determining factor for differing between gartley abcd and butterfly with 618 being preferred for gartley and 786 for butterfly ... although my judgment is reserved on this