Ladies and gentlemen, I offer you... the price grid. This market is much like that of GBP/USD in 2013, no?
I'll spare you most of the premise, but to help you understand how this was/is built, here's some key info.
(1) "Center of market"
Strong downward swings retrace(d) to key confluence levels in smaller frame views (marked by the two lighter purple lines). These levels are how I've always found the structure building price levels in any particular market expansion or contraction. Fibonacci retracements are drawn from these key price levels upwards to recent price peaks, usually the start of wave 3 of prior elliot waves.
Once at least two upwards fibonacci retracements are drawn and verified to have properly working key ratios, they are marked by their respective boxes (see the two blue boxes from purple line 1 at 1.28384 and the two red boxes from purple line 2 at 1.25299).
If the structure is nice, the cloning / extending begins. Those boxes/fibs are cloned downwards and downwards (since this has been a short market), and are allowed to overlap if it so happens. This is what forms future confluence, support targets, in this case.
The process is repeated for each retracement, then light blue horizontal lines are drawn on the price levels of the cloned fibs wherever there are ratios which fall close enough to other ratios (thus forming "confluence").
(2) "Harmonic Proportions"
No, not random or unrelated to subdivided ratios. How fibonacci and harmonics relate to each other is a grander discussion, but this is why I draw proportional lines between confluence points which have been respected enough by price to cause a directional change. The price range of the proportional divider was derived from the price at the top of the red box and smaller blue box, and the price as the next down "center of market" at 1.25299.
Since each bull and bear market builds structure off of this harmonic unity, we can use this tool to project the proportional division forward (short, in this case). The price action validated the first drawing attempt, especially with our recent pivots at 1.0545 and 1.1364, and with plenty of important price action points in-between.
Proportional divisions are hidden when confluence levels derived from the earlier swings do not appear near them.
(3) The Point
Use this as you'd like, but it's one of the ways I accurately call targets, often with literally exact pip accuracy. The time axis is a topic for another day, but this allows us to see not only where price should pivot, but where it should not. This makes for better 30m and 60m trading since ideas become easier to weight different levels of confidence on.
No, I don't leave ALL of this stuff on my chart all the time =).
Edit: Oh, and the yellow boxes surround a key gap in the market, which I drew a very strong purple line at. Looking backwards for decades becomes very interesting after defining all of these levels. But, since this reminds me of GBPUSD in 2013, I had to see what a true "center of swing" looked like. That MIGHT be it, but it's hard to tell. Either way, yellow swings up from the defined level ARE mirroring, so it's an important level regardless.
I'll spare you most of the premise, but to help you understand how this was/is built, here's some key info.
(1) "Center of market"
Strong downward swings retrace(d) to key confluence levels in smaller frame views (marked by the two lighter purple lines). These levels are how I've always found the structure building price levels in any particular market expansion or contraction. Fibonacci retracements are drawn from these key price levels upwards to recent price peaks, usually the start of wave 3 of prior elliot waves.
Once at least two upwards fibonacci retracements are drawn and verified to have properly working key ratios, they are marked by their respective boxes (see the two blue boxes from purple line 1 at 1.28384 and the two red boxes from purple line 2 at 1.25299).
If the structure is nice, the cloning / extending begins. Those boxes/fibs are cloned downwards and downwards (since this has been a short market), and are allowed to overlap if it so happens. This is what forms future confluence, support targets, in this case.
The process is repeated for each retracement, then light blue horizontal lines are drawn on the price levels of the cloned fibs wherever there are ratios which fall close enough to other ratios (thus forming "confluence").
(2) "Harmonic Proportions"
No, not random or unrelated to subdivided ratios. How fibonacci and harmonics relate to each other is a grander discussion, but this is why I draw proportional lines between confluence points which have been respected enough by price to cause a directional change. The price range of the proportional divider was derived from the price at the top of the red box and smaller blue box, and the price as the next down "center of market" at 1.25299.
Since each bull and bear market builds structure off of this harmonic unity, we can use this tool to project the proportional division forward (short, in this case). The price action validated the first drawing attempt, especially with our recent pivots at 1.0545 and 1.1364, and with plenty of important price action points in-between.
Proportional divisions are hidden when confluence levels derived from the earlier swings do not appear near them.
(3) The Point
Use this as you'd like, but it's one of the ways I accurately call targets, often with literally exact pip accuracy. The time axis is a topic for another day, but this allows us to see not only where price should pivot, but where it should not. This makes for better 30m and 60m trading since ideas become easier to weight different levels of confidence on.
No, I don't leave ALL of this stuff on my chart all the time =).
Edit: Oh, and the yellow boxes surround a key gap in the market, which I drew a very strong purple line at. Looking backwards for decades becomes very interesting after defining all of these levels. But, since this reminds me of GBPUSD in 2013, I had to see what a true "center of swing" looked like. That MIGHT be it, but it's hard to tell. Either way, yellow swings up from the defined level ARE mirroring, so it's an important level regardless.
