FOREX PRO Weekly June 17-21, 2013

[MidnightRun]

guys, i came across some interesting phenomenon: there seems to be some kind of time code embedded in the price action. i don't know yet if it is just pure coincidence, but i have been analyzing M1 for XAUUSD heavily and it is just utterly amazing how the price turns on a dime at particular time points. i don't mean only at the beginning of a session or at the fix, but there seems to be some kind of structure to the time continuum itself and at particular points in that continuum, the price will turn.

ok, i know, it sounds like a tautology, but, and that's the tricky part, by judiciously applying the fibonacci time extension tool (not the time projection tool!) in conjunction with 2 other indicators, you can foresee the exact turning points on M1, and since XAUUSD moves a few point every time it turns (mostly) that's a pretty good day spent scalping.

now, i haven't confirmed whether i just got the devil's luck and this is a total fluke and haven't tried yet on ccys, only on XAUUSD. did anyone notice this?

i'm applying this approach to e/u right now and it looks like we'll have a turning point at around 3070 (+/-) somewhere between 1400 and 1600 EST. no idea if it will pan out. let's see.

also, one way you can see it is if you put your screen on the side, that is to say, grab your screen and rotate 90 degrees to the left until it rests on its (the screen's side) right side. then the X-axis will be vertical, time unfolding from bottom to top.

Well, do not know what to say... What are the other two [secret] indicators?

 

[Triantus Shango]

i feel like a kid catching a glimpse of the inner workings of the Creator's reality engine.

@MR: re the 'secret' indicators, i cannot speak, sorry. all i can say is that it took me ages to finally find the right combination. but i will say this: think of one as a noise filter, just as in signal processing, and when one speaks of signal processing one must consider the time domain. if this is too cryptic, look up the work by john ehlers and jm hurst. books on amazon. also, there is a very interesting application by a south african trader who applies and expands on jm hurst's work with a piece of software he calls 'sentient trader'. i'm not using it, but if you grasp what's going on there, you'll have an idea what i'm talking about.

 

[Triantus Shango]

sive:

what are the possible repercussions for the rest of the world economy about the chinese situation? is it as bad as it sounds, as in a lehman-type event again?

Chinese Banks Ready to Go Bust | Zero Hedge
China Interbank Market Freezes As Overnight Repo Explodes To 25% | Zero Hedge

 

[papao]

i feel like a kid catching a glimpse of the inner workings of the Creator's reality engine.

@MR: re the 'secret' indicators, i cannot speak, sorry. all i can say is that it took me ages to finally find the right combination. but i will say this: think of one as a noise filter, just as in signal processing, and when one speaks of signal processing one must consider the time domain. if this is too cryptic, look up the work by john ehlers and jm hurst. books on amazon. also, there is a very interesting application by a south african trader who applies and expands on jm hurst's work with a piece of software he calls 'sentient trader'. i'm not using it, but if you grasp what's going on there, you'll have an idea what i'm talking about.

hi triantus. First of all, i think it wouldn't be fair asking you (or someone else) trading secrets (also because an edge is going to disappear when it becomes public).
Anyway, i like reading your posts because they are useful for opening traders mind (and, hopefully, learn something new and useful ). Some time ago (last year) you talked about hurst (sentient trader). That gave me the input for reading J.M. Hurst - The Profit Magic of Stock Transaction Timing (after all, i can say that wasn't so useful; may be 40 years ago it could have been, but not now). Curiously enough in these days i'm reading Rocket Science for Traders (John Ehlers), but it looks like i stop understanding (because the math implied) just right where the book seems to became interesting. Do you know some "shortcut"? (i mean, some other book that talks about this subject but with less (or easier) math?)
thank you

 

[Triantus Shango]

glad to be of service. re a book, give me the weekend. i've been on the computer for 14 hours now and can't remember right away. so i'll look for it tomorrow.

 

[Triantus Shango]

re the e/u prediction, looks like some fine tuning is necessary. was looking at H1 initially and it turned sooner. when i checked M5 though, it turned right at SPPT. need to figure out how to apply this to longer time frames. as to XAUUSD, still like clockwork, although it is becoming out of sync. interestingly, on M1 price plays ping-pong between last and before-last 61.8% retrace levels swinging up and down, and repeat. i find this really strange, but interesting! ok, well.. time to call it a day. have a great weekend all.

 

[D.R.&Quinch]

Please tell us more Triantus.

 

[Sive Morten]

sive:

what are the possible repercussions for the rest of the world economy about the chinese situation? is it as bad as it sounds, as in a lehman-type event again?

Chinese Banks Ready to Go Bust | Zero Hedge
China Interbank Market Freezes As Overnight Repo Explodes To 25% | Zero Hedge

Hi Triantus, it's lack of sufficient data to make some far-going conclusions. When I've worked as interbank trader, at least in Russia, there was a times when it was inversely sloped interbank rate curve and rates were even greater. Sometimes they were around 80%. But usually there are some reasons exists for that. For example mass tax payment periods when demand for liquidity is growing or some other moments.
So sudden splash to 25% does not neccesary mean that there will be a collapse, but still this is a warning sign and all will depend on tendency.
Besides, this is overnight repo rates, they could be quite different compares to cash overnight rates. Since, as a rule bank can take money in REPO (by using some bond as pledge) with some discount, may be this is just an attempt to increase discount and give less money, may be attempt to chill out repo market. I remember that we could get 6-10 leverage on repo by buying the bond, put it as collaterial and taking money in repo. Then use this money for purchasing the same bond and so on. Thus, you can take 100-150 K overnight repo for 2-3% and buy 800-1000 K bond notional value with yield around 7-10%. May be there is something of that sort action in China and Central Bank is trying to avoid collapse.

With all respect to Lehman, I'm not sure that this is reasonable comparison of China with Lehman. THis is still just incommensurable things