ForJL314
Member
|
Total Posts: 730
Last Post: 5/22/2012
Member Since: 2/11/2005
|
|
When it comes to circles I consider Neil of this board to be the real
expert. His charts and analysis are excellent and beyond reproach. My
work is different and very simple. So much so that I’m sure there are
quite a few of you out there doing the same thing or something very
similar. So this post is geared to those who may not have thought along
these lines before.
Any discussion of circles has to begin
with scaling. Proper scaling is essential and there are no two ways
about it. The subject however is beyond the scope of this post and I
suggest those who want to learn more about it do a search on this board
for more information.
When I think of highs and lows I
think of energy points. Points of energy that were so strong that they
were able to turn the market in a different direction. From up to down,
from down to up. Now everyone knows about starting a circle from say a
high and drawing down to a low. From there I usually just reverse the
operation and draw from the low back to the high (Chart1). Nothing earth
shattering there. However I also like to look at the past high-high
e.p. (Energy point) and low-low e.p. Drawing the circle from the
leftmost high to the right high then reversing the process, and doing
the same with the low-low e.p. Chart2 is a daily QM and chart3 a 70m YM
showing what I mean. This gives me a totally different perspective
of support and resistance. My settings are in divisions of .25 so it
would be .25, .50, .75, etc. Do I use other settings? Yes, though almost
always in time domains other then intra day. For intra day trading my
work suggests these are the optimal settings. When and how I change the
settings are something I consider proprietary and won’t go into.
The salient point here is to not think in terms of highs and lows but
in points of energy. Highs and lows are not energy points by themselves
as there is something behind them that made the markets change
direction. They just manifest themselves as highs and lows. There are
many different types of energy points that can effect the market and the
final two charts are a couple of quick examples. The first chart is
using the energy points of the two most recent Moon Venus Declinations.
We are only interested in what happens after the second drawn vertical
line as this is the projection. Results are good until we get to the
most recent price action where things get a bit sloppy. The next
chart is using the energy points from the most recent moon phase
changes.
So there you have it … energy points and circles!
Wish I had more time to go into this a little deeper but think you get
the idea. As usual this post only reflects my opinion and the way I do
things. It is my hope that some of you have enjoyed it and perhaps
started viewing circles and markets in different ways.
Joe
ForJL314
|
|
|
|
