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Trend following is where the money really is! Why? Because you’re not bobbing in and out of the markets trying to catch a few quid. Instead you’re finding established trends to ride for quite a long way. There are several ways to catch trends. See: Trading with Guppy and Revisiting the Williams Vix Fix . The technique ...
Correlation is about how certain things are related. Some instruments are inversely correlated i.e. if price goes up on one, then price tends to go down on another. Positive correlation means they move in the same direction. It is almost never the case that there is perfect correlation between two instruments. Interestingly the DAX (GER30) ...
Today I came across another classic example of support and resistance. I often review things that I had already learned so as to etch in my brain the importance of the concepts. The chart below explains more.
I’ve explored Williams Vix Fix on mainly 4H charts in the past. Over several weeks I’ve been looking at 2H charts to see if WVF works on these timeframes. My observations are that in some situations they can be valuable. Of course, WVF requires careful attention to detail and interpretation. In general only signals coming ...
A very big part of trading is stalking the markets. Good traders are always tracking the charts days and weeks in advance to see how patterns are developing, waiting for the right moment to strike their ‘prey’. Yes – for sure good opportunities don’t come along very often. But that’s part of the ‘job’. A ...
FormationSeeker is a revolutionary resource for all traders. Scott Carney, the renown brain behind discovery and development of some harmonic patterns has been a driving force at FormationSeeker. FormationSeeker runs web-based software that picks out harmonic patterns consistently, matching much of the knowledge, skill and experience of Scott. I first logged in for free on ...
The following chart is pretty busy – but don’t go crazy with all the lines. Just follow the numbers. What’s happening here is that I’m looking back in order to look forward. The indicators have been used to better see what happened and how I may approach similar setups in the future. I’ve basically combined ...
The trade in the annotated chart below shows how a Cypher pattern was spotted and trade taken to successful completion. Full credit is given to Alexander Nikitin from Tradingview. Big thanks is given to Alexander for his fine and generous work. This trade was live earlier in the day. I had questioned whether the D ...
Harmonic patterns are often referred to as ‘advance patterns’. This article does not go into the historical basis or evidence for the foundations of their use. There have been numerous statistical analyses of how these patterns can predict price action. No evidence is supplied for the latter. It is for traders to direct themselves to ...
In May 2015 I had briefly visited the Williams Vix Fix (WVF) when I was ‘Rethinking indicators’. On and off since then I had explored various setups on the WVF. Like most things in trading the importance of some aspect doesn’t quite hit you until later on. In the last few weeks I had been ...