Tired of Trading using Lagging Indicators like MACD, EMAs, and the real mysterious Stochastic RSI. Are you always one step behind the Forex market, left frustrated and baffled? Well I am here to tell you its not your fault! You were lead down the bunny trail by all the propaganda about the Public indicators as I call them. They come with all charts so they have to be good,right? Wrong. If you ask 5 different traders how they use these indicators you will get 6-7 hallucinogenic answers. What if you had a Forward looking indicator based solely on price and wave patterns that was battle tested in the interbank market? What if this indicator could tell you with a high degree of accuracy where a currency would reverse of if the level was broken zoom to the next preplanned level? Do you think you would be more profitable knowing these points ahead of time? You bet your bananas you would!
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?
Of course it would help you gain massive pips.
So the indicator I am talking about is my Famous Trend Reactionary Numbers. AKA TRNs.
Trend Reactionary Numbers are major turning points in currency markets. They are unknown to the retail trader until today. They are the points that banks look at to unload and accumulate positions. How do I know? I was A Chief Dealer and these points were developed by me and my staff to give our trading institution an edge. All Major Banks have a similar model.
The Trend Reactionary Points are what my inner circle of traders have nick named the magic numbers. I have developed these numbers over the years using several different wave models, and some chaos theory. Chaos Theory was introduced and applied by Edward Lorenz in 1965 for the first time in meteorology. Nowadays this science is the milestone for fundamental changes in sciences especially meteorology, astrology, mechanics, physics, mathematics, biology, economics, statistics and management. Even though chaos theory in recent decades has been part of survey in miscellaneous scientific fields, but its basic concept has its root in primitive humans understanding of the universe. Heart pulses, clock’s oscillating movement like a pendulum and economic fluctuations all show a dynamic non linear behavior. Based on this theory, happening in world are such dynamic and complicated that they sound to be chaotic, but in effect, chaotic systems have a fundamental and fixed order. Although identifying this covert order is not impossible but it is difficult. Because many parameters and factors in dynamic and unpredictable dealing, form phenomena’s behavior and make typical future behavior. When we add a Fibonacci wave count to the Chaos model we get a very accurate picture of future direction. Here is the main point since the market is always in flux these points float and are only stable for a certain amount of time(usually 3-6 weeks.) I do not manufacture these points the market does! I reset them as soon as the market signals me the wave pattern is askew again. These are my version of Elliott Wave with a fixed point!
The Trend Reactionary Numbers are an integral part of my trading. They are the Aces of the deck of cards to coin a phrase.I am always looking to work toward these points and see how the market price action reacts at them. Since they are forward looking and I have them in Advance I can formulate a trading plan around them.
The are based on three major theories that markets always move from Euphoria To Dysphoria. All price action will move back to the moving middle eventually. I will buy these levels on a break and use a 35 pip s/l, and also reverse if they fail. Conversely I will look to sell rallies to these points.Using a similar 35-40 pip s/l. This is a rule of thumb, you need to check the harmonic wave pattern for a currency, easy to do just go back and see the average true range for the last 20 days.
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.
Here are Some Trend Reactionary Numbers for the month of January 2011. They should be good for anywhere between 3 to 6 weeks. Like I said they are in flux and the market sets these.(I plot these points for all the major Currency Pairs and the Related Crosses. Cross pairs such as GBP/YEN,GBP/NZD,EUR/YEN,EUR/GBP,AUD/YEN,AUD/CAD etc. They are extremely accurate.) Each Currency has its own calculation, based on its Fibonacci wave and chaos signature. I can also plot these points for Stocks and Commodities upon request.I will post three majors here. You can use these on your charts to see there accuracy and power. The ones listed will be Euro,GBP and GBP/Yen: 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 GBP/JPY:144.98,140.86,139.42,135.93,132.44,130.70,128.95,127.48,125.63,119.99,118.66
Remember that Trading is not a get rich quick, but with my Trend Reactionary Numbers It can be a get rich quicker. Enjoy The Music Of The Market…But Dance Near The Door I always say!
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