FX:GBPUSD   British Pound/U.S. Dollar
62 10 1
Note Stoch
isomorph
2 years ago
Stoch is meaningless. Rather check this out:
snapshot
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HappyKing isomorph
2 years ago
Thanks, it just easy to me,, never mind
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isomorph HappyKing
2 years ago
Don't use what's easy. Use what works most often. When I started out in FX, I was using MAs, MACD, Stoch, then RSI, CCI, Williams %R, Bollinger bands, you name it. They all looked like they worked BUT when they don't give false signals, they lag too much and have no predictive power whatsoever. That being said, Blau's SMI has less lag and a little more predictive power but barely, and it depends on the parameter values. Williams's synthetic VIX is interesting as an additional confirmation on longer TFs, but other than that not very useful.

What I find more useful is:

1- the TDI (the one I use is my modified version, that's why I call it TDIm) because in its modified version it has no lag whatsoever; in fact, it turns too soon, that is, it will turn a couple of candles before the market actually will turn, thus giving the trader ample forewarning. Again, the parameter values are key, as well as the underlying formula (which doesn't use the classical RSI).

2- the SB (which I developed; the histogram with the colored circles) which clearly shows weakening of trend momentum): above 0 line = bullish, below = bearish, so you get to see the contractions between price action (PA) and study quite clearly

3- the volatility range as defined by my modified Bollinger bands

4- the blue/green/red lines (both current and daily values on same chart) which is another study I created

5- where is the previous day's and week's high/low and where is price relative to these

6- of course, resistance and support zones and trend lines complete the whole picture.

Trading is anything but simple and even though I heard it a 1,000 times from so-called pro traders to keep it as simple as possible, after years of trial and error I come to this conclusion: if you make it too simple, at best you will miss out on many moves that could have been captured, and at worst you’ll have a useless system.

My point is this: it’s best to develop your own tools or find someones who can: not only it will give you a better understanding of price dynamic but also you might very well find something way more useful than any of the studies that have been around since the 80s.
+1 Reply
isomorph
2 years ago
on M5/15 we just had a little bounce. H4 still points lower. I'll say we'll get to 6060 before Friday is over. Who knows. ;)
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HappyKing isomorph
2 years ago
Who knows. ;)
Thanks for kind comments
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isomorph HappyKing
2 years ago
You're most welcome. I love TA and talking about it... sometimes a little too much ;) . Anyway, price is now under 6030 and we have the YPP (yearly pivot point) at 5986 and MPS1 at 5960--I use traditional pivots. If this support range holds and price bounces from there, we would have a double bottom on H1/H4 or if bounce starts from 6011 (which is the 78.6% fib retrace of the move up from 5953), then that would complete the left wing of a potential Gartley 222 BUY structure--if we get it or a derivative (butterfly/bat/crab) that would be very good as it would happen towards a bottom (BUY structures are more meaningful at bottoms), then we can look for a resumption of the bull trend as BoE is poised to raise interest rates sooner than other countries (so an upside potential of at least 900-1000 pips.

Note that Williams's synthetic VIX is giving us a false signal on H1 atm and no signal yet on H4. When we get a series of lime bars on H4 and/or Daily, I'd say it's gonna be time to look for a entry point to go long.

Chart:
snapshot
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HappyKing isomorph
2 years ago
Thanks friend for kind comment :)
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isomorph HappyKing
2 years ago
I might have jumped the gun on BoE raising rates faster... after today's CPI data, nope. But WED we have another important data point: Avg Earnings Index. If this comes out as expected or better, BoE will probably raise rates first --> GU up to 1.65 at least.
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HappyKing isomorph
2 years ago
Hello isomorph , That sound interesting!
Thanks
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HappyKing isomorph
2 years ago
Strangely, I've wrote my calendar "10/14 long pound"
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