Patience with the AB Boundary

[Raj]

Just wanted to point out a few examples of a point I always look for...whenever we're looking for point "C" in an abcd trade, I'm always reluctant to get in on a 382 bounce unless there are news announcements because they rarely reach their targets. The market likes deep retraces 618 or more...I've posted some examples of this. This doesn't mean we cant take the CF's at 382, but just keep in mind that the market may not take out the current "B" high/low, or it may take it out, just to pullback at the first supp/res it finds - usually the 118 or 127 levels. Hope this makes sense with the examples.

CAD - bounced first at 382, never took the low, pulled back up to the 618

AUD/CAD - MS at the 50 fib that went nowhere, pulled back for a 618 hit

EUR/AUD - ES at the 382 that went nowhere, pulled back for a 618 hit

:)

[liadex]

Thanks for the reminder

[Rob123]

Thanks Raj for this info. I do have some questions if you don't mind. Are you using your 4 and 1hr 533 stochastics for a filter,another words what i'm trying to say do they both need to be going in the same direction including the 30 min chart as well before you take an entry .Are you will ignore this if you see a candle formation ? I know these are lagging but just wondered. I do notice when these 2 time frames line up with a candle formation it can work out real good sometimes..

I see you have a MA channel - Do you only take trades above or below this channel ? If so could please post your parameters ?

Thanks,Rob

[Raj]

Hi Rob, I guess if I have indicators on my charts I should really use them LOL, but the truth is most of the time I just look for CF's at point "C" and "D". The two red MA's you see are something called a tunnel - there is some tecnique to this - I don't really follow it but they claim that it is basically a supp/res level where the market can give a big move. The settings for the MA's are 169 and 144 (you can google "Vegas Tunnel" to find out more about this strategy - there may be some creedence in it as these numbers have something to do with the fibonacci summation series.)

And you're right if the 240 sto and 30 line up then very good - but once again I'm not too proficient with indicators - I should really remove them altogether. I have used stochastic on the 5min when market is quiet - its very good for scalping ie. o\s, o\b

Hope this helps

:)

[Rob123]

Thanks Raj ,Helped very much so . Rob