4xForecaster

Backward Market Geometry | #technicalanalysis #forex #fibonacci

FX:GBPAUD   British Pound/Australian Dollar
Friends,

As I come across comments on the charts in which traders overlay simple geometries, I thought I should point out to the ones that have been most important in my experience, in terms of how reliable they have been.


THE STANDARD AB=CD PATTERN:

To start the enumeration of the most common ones, let's name the most obvious ones, the a-b = c-d symmetrical pattern.

In its most mundane form, the a-b = c-d represents a balancing of a geometric             form in which the ab segment is reproduced following a shallower retracement in the order of 0.382 to 0.786 Fibonacci range. What ensues is simply a cut-and-paste version of the a-b segment into a c-d segment.

In the chart, you will see this in the large RED dashed figure.


REITERATION OF THE STANDARD AB=CD PATTERN:

While there is a possibility of reiteration of the ab segment into a c-d, then a e-f segment (see YELLOW pattern in the price field), this represents a lesser occurrence.


FIBONACCI CAN HELP MEASURE THE EXTENT OF THE PATTERN:

The type-A trader might be tempted to look for a perfect replication of a-b into c-d, but this is rarely the case, as the market will expand at its own whim. Be flexible and let the market breathe a little.

Still, the trader interested to keep a pulse on these development should remain on guard with such Fibonacci-paced extensions as 1.272, 1.414 and 1.618 x the b-c segment, or in the case of a reiteration, 1.272, 1.414 or 1.618 x d-e segment.


MOST RELIABLE SIMPLE GEOMETRY:

In my experience, most novice pattern traders have calibrated their visual cortices to scan for forward-moving price action, over which they draw a line and look for a symmetrical repetition, so as to decipher the all-too familiar a-b = c-d symmetrical pattern.

Instead, I recommend that you seek out not the FORE-ward, but instead the BACK-ward leaning price action. In this geometry, you will have to reverse your mind's eyes, looking for a symmetrical repetition in which the a-b = c-b segment is drawn lines leaning in reverse of the standard symmetrical a-b = c-d pattern.

This pattern has a name: The One2One (purple in the chat)


OVERALL:

In my experience, the completion of these symmetrical patterns are rarer, but accompanied by a most forceful price reaction upon completion of the reversed a-b = c-d geometry.

Think backward. Stay ahead.


David Alcindor
Predictive Analysis & Forecasting
Denver, Colorado - USA


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David Alcindor
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David Alcindor, CMT Affiliate #227974
Alias: 4xForecaster (Twitter, LinkedIn, StockTwits)

Signal Service or Private Course - Contact: MarketPredictiveAnalysis@gmail.com
All updates on https://twitter.com/4xForecaster
02 APR 2015 - Update:

From Twitter/LinkedIn:
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$GBPAUD hit target at 1.94589; Rallied further to complete background geo. along 1-4 Line:

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@tradingview $GBP $AUD
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David Alcindor
+3 Reply
23 MAR 2015 - Update:

From Twitter/LinkedIn:
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$GBPAUD hit its second target at 1.90587; Remains bearish; Eyes 1.87458:

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@tradingview $GBP $AUD #BOE #RBA #forex
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David Alcindor
+2 Reply
23 MAR 2015 - Update:

$GBPAUD coming down nicely as forecast.

David
+2 Reply
13 MAR 2015 - Update:

From Twitter/Linked-In:
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$GBPAUD rolled from geo.; mulls around prior target; Break < 1.92687 opens floor:

snapshot


@tradingview $GBP $AUD #BOE #RBA
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David Alcindor
+2 Reply
HiTech PRO 4xForecaster
looks like we might continue going down
GBPAUD REVERSING OR CORRECTING
+1 Reply
Yes, bears are still in control in this one per model - David
+4 Reply
hello david thanks
Reply
06 MAR 2015 - Update:

From Twitter/LinkedIn:
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$GBPAUD hit TG-1 as forecast; Recoiled to prior R/S; Remains Bearish:

snapshot


@tradingview $GBP $AUD $USD #BOE #RBA #forex
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David Alcindor
+2 Reply
05 MAR 2015 - Update:

From Twitter/LinkedIn:
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$GBPAUD stumbles across forecast levels; Remains on tack towards targets:

snapshot


@tradingview $GBP $AUD #BOE #RBA #forex
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David Alcindor
+2 Reply
04 MAR 2015 - Update:

From Twitter/LinkedIn:
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$GBPAUD steps across 1.95683 structure once again; Floor may cede to TG-1:

snapshot


@tradingview $GBP $AUD #BOE #RBA #forex
----------


snapshot



David Alcindor
+5 Reply
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