I had a chart depicting the uptrend in the Pound expressed in gold. The forecast for the wave 3 top was correct, and it seems that wave 4 has ended. It technically can't dip any lower, unless it's a terminal pattern. This would imply that we might see a rally in GBPNZD, and in GBPUSD, naturally.
Just as extra information, we can also perform an analysis of individual currency indexes, constructed using all major currencies vs one instrument. I've done this in the past and it yields very good results when paired with the time at mode methodology.
Look for longs in the Pound crosses, I know I will. Regards,
Thanks, trying to go beyond the simple price charts and individual instruments to gain clarity about the relative strength is important to me.
Trader-Mick
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You are most welcome.
Its really pretty amazing how you can gather much information by analyzing the charts and individual instrument together.
Hats off :)
IvanLabrie
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It's an application of the concept of relative strength, and trying to determine money flow of international investors using technicals.
I don't know enough to use fundamentals like a bank trader does, all I have is the technical chart and my toolset.
Trader-Mick
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This is the first time I have seen such analysis, I am amazed. Will like to see more and understand the concept :)
IvanLabrie
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I borrowed the idea from Ashraf Laidi, on reccomendation from David Alcindor here.
Credit where credit is due.
The relative strength ideas, I had been tinkering with, to filter which FX pairs to trade.
I like this paired with Van Tharp's market types and Tim West's rgmov, and time at mode.
It's the best way to trade for me.
IvanLabrie
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If this level fails to hold, things won't look good for the Pound.
BCMel
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Do I see an overlap here? You have me a little worried!
IvanLabrie
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Where?
The wave count is an approximation, it isn't that important. The whole thing is corrective, so this impulse might be a terminal one (IF it's even an impulse).
Terminal impulses end corrective structures and have corrective legs of any kind, and an overlap of wave 2 and 4.
IvanLabrie
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(On the subject of EW, it's possible 1-2-3 is an ABC, can be a terminal impulse 1, or an A. Would make more sense than the current labels)