Wednesday 10 March 2010

US$ on the move vs. ¥


OK, since this morning price has moved up and taken out the previous swing high at 90.65 and at the time of writing the market is trading at 90.65 but has been upto 90.81. My initial objective for the one lot brought yesterday @89.73 was the red centre line of the up sloping ML set which depending on time/# of bars will be about 90.93-90.95 area. I will take a partial profit on one lot there.
The chart above shows another dimension of the Dr.Andrews ML theory/practice which i find fascinating. Having tried and studied many trading disciplines during both my time as a professional some years ago as well as later as a private trader nothing struck me as quite so simple & visually rewarding as price moving in a frequency 'wave' within a ML set. Above is another dimension to to the ML theory which is the Reaction Line.(distance of P0 to the midpoint of P1-P2). For reaction lines to work you must be sure of P0 and this is often dubious and unclear as you may have data corruption(as per my post this morning re my metatrader feed) or multiple swing highs to chose from or a combination of these two.......However when you get it right the effect is impressive and it gives a 3rd dimension (as i see it) to price activity. The above action/reaction line is the 2nd in the green down sloping ML set in the previously published( (9 am today) Metatrader 4hr chart for $Yen. Seen above in 60min detail you can see price activity dance above and below this diagonal supp/res line where i have inserted arrows. To all intents and purposes it behaves as another MLP pr MPL.
If anyone would like a free copy of 'The Best Trendline methods of Alan Andrews & 5 New Trendline Techniques' by P. Mikula or a file containing the very best ML Metatrader tool which draws ML's action/reaction lines,trigger,sliding parallels, Schiff & Mod Schiff etc please contact me.

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