Forex ~Trend Reactionary Numbers
Are you Tired Of being one step behind the price movement of the currency market? Are you left frustrated and Dazed? Are you tired of using lagging indicators like RSI, MACD, and SMAs that just don't perform consistently? What if you had a innovative Forward Looking Indicator that helped you find out at what period (wave) a Currency in the Forex market was in the Currency markets total range? What if you knew with a high probability the currency would turn at these points or if broken would zoom to the next level? What If you had these points plotted for you weeks in advance? Can you see how having these points would make you step ahead of the market, and you could capitalize on massive pips!
Lets Go one step further. What if this indicator also helped you determine if the trend of a currency would continue? You could then fade(go against) the noise with confidence and make more Pips.
So the question is do you think this Indicator would be of help to your overall profitability?
Your darn right it would!
I would like to introduce you to my Trend Reactionary Numbers. Also known as TRNs.
Trend Reactionary Numbers are like super unknown pivots for the retail trader(except major banks have similar points.) These Points are major points in the market place. Currencies with gravitate to them and also at times be repelled by them.
Trend reactionary numbers are what my Inner circle of traders also dubbed the Magic numbers. I have developed these numbers over the years by working several different Wave Systems. These are my variation of Elliot Wave with defined points. They are based on a Fibonacci Wave count that I developed and are very, very accurate.The next major model that is added to find them is Chaos theory. Chaos Theory as first introduced as a model by Ed Lorenz back in 1965. He applied the theory to meteorology. It has come to be a major landmark for changes to current thinking on mathematics,economics,biology and statistics. Like Fibonacci levels Chaos Theory can be found in Heart pulses, clock's oscillating movement like a pendulum and economic fluctuations, they all show a dynamic non linear behavior.When I combine these models I have found these points float and are always changing I reset them as soon as the Market resets and gives me the signal that a wave pattern has finished. I don't manufacture these points the Market does.
These points are the Trump Card of the whole deck to coin a phrase. I am always looking to work toward these points and see how the market reacts at them. These points are a forward looking indicator. You can Trade these points as stand alone as a completely separate system.
Using a harmonic wave calculation I can gauge my s/l at these Trend Reactionary Numbers. Its easy to find just go back and get the Average True Range (ATR) of a currency for the last 20 days. I will look to buy a break of these points and use a percentage of the Average True Range as a s/l. It is usually 35-50 pips. Conversely I will look to sell Rallies at these points always gauging market price momentum. Since these points are based on three major theories, we find that markets always move from irrational exuberance to dysphoria. All price action will come back to the moving middle eventually. These points give you those levels with a high degree of accuracy.
Trend Reactionary Numbers are usually anywhere from 150-300 pips away from each other. Sometimes they can be a smaller range, but as I said the market manufactures these points I just follow them. If the market is approaching a TRN on the upside(Its rallying) I will look to sell it, and gauge the markets price action at that point. Conversely if the market is falling to one I will look to buy it. i look to catch moves from one TRN to the other, of course I don t always get that, but I employ a trailing stop when in the money. As Wd Gann said "Never make a good trade turn into a bad trade, protect your capital." I and many of my students catch these moves quite frequently, these points are amazing. I have to say at times I have disregarded them, somehow thinking since I found them i could toy with them. I have always gotten burned. Just being candid here.
I will list the new Trend Reactionary Numbers For January 2011. I have these plotted for all the major pairs I trade. I can do them for any currency upon request. I also can plot Stocks, Bonds and Commodities. Each have there own unique Chaos and Fibonacci wave calculation its not a one size fits all. I will list three of the majors here Euro, GBP and GBP/Yen. Plot these out on your chart and you can see for yourself there accuracy and power. If you are reading this article later, still go back to the time frame of January 2011 they would be good for approximately 3-6 weeks. Like I said the market resets these. Here are three of the majors: GBP/JPY:144.98,140.86,139.42,135.93,132.44,130.70,128.95,127.48,125.63,119.99,118.66 Euro/Dollar: 1.3610,1.3487,1.3330,1.3143,1.3012,1.2935,1.2747,1.2576,1.2040,1.1864 GBP: 1.6123,1.5981,1.5688,1.5521,1.5467,1.5246,1.5025,1.4723,1.4490,1.4027,1.3723,1.3588
Remember as I always say Enjoy The Party...Dance Near The Door!
Article Source: FxTradingStock.com
About the Author
Tom Strignano Is A Retired Forex Chief Dealer with over 20 years experience Trading Forex and Commodities. Here is A Personal Invite. And Now I Would Like To Welcome You To My Personal Trading Blog, Where You Can Get Real Trading Information On The Forex Market. Please visit Tom Strignano. You will be able to Instantly Download Trading Systems And Reports For Free, For A Limited Time. I look Forward to on the other side.
by: Tom Strignano
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Word Count: 915
Date: Sat, 8 Jan 2011
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