Quote:
Originally posted by GabeMT
I guess I was naive when I posted my question because I did not expect that people in this forum would be so much after the immediate reward.
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Umm this is a trading forum. Trading's aim is to take money away someone else who has no intention of giving it to you. The savage nature of the game ensures that noble ideas don't readily flourish.
Hey the only reason I am here is to improve my trading. Not for any "brotherhood of man" reasons. The only way I can do this is to talk to other traders about the markets methods. I usually get something out of these exchanges hopefully they do too. Even if you disagree with someone you still learn something even if its "I don't want to do what he is doing" type thing.
If you want to underst Currencia's charts search (either on the web or here at moneytec.com) for Elliott Wave. Start reading go there.
As I undrst Elliott Wave (please forgive me if I mangle it Currencia this stuff is new to a moving average man like myself) is that the market will move in cycles. These cycles are composed of waves the cycles repeat in regular patterns. Also each cycle is composed of smaller cycles each cycle makes up large cycles (i.e. on different timeframes). This pattern is often decribed as 3 up 2 down (i.e. rally decline rally decline rally then new cycle). The exact course of the cycles is more complex. Fib numbers are used to project where when (very important) the wave cycles will go.
On the charts the green "thick" lines represent Elliottt Wave projections. The "thin" lines are fib numbers (i.e. 31 50 68 etc). These are used to gaugue where the waves cycles are likely to go. The extreme highs lows are used as reference points.
Some thing I am unsure of:
the "trendlines"?
some of the vertical lines (time fib numbers?)
the circular lines? some sort of price time combination? For example lets say that a rally lasts for on average (I know bad example!) 3 days goes 200 points. Now I know you can't compare apples oranges but just bear with me. If you times 3 by 200 you get 600. Lets call 600 a absolute value (for lack) of a better word. What about if the rally lasted a long time but really did not go anywher for example lasted 4 days ralled 150 points. This rally (i.e. 4*150=600) is similar to the previous one. If you kept the "absolute value" of 600 the same but changed the time price you would start to plot a curved line as in the chart. Or this could be very wrong.
Now you have support resistance at for example trendlines. Why not have support resistance at "absolute value" lines?
Then again I could be really wrong!
probally a whole lot more that I missed