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GBPUSD Fractal Map

Cable's price action looks quite familiar and it's a fractal of the 1992-2000 price action (see Figure 1). We can see that the massive sell off in the 90's resemble the sell off that we had in 2007-2008 and going forward both sell offs have seen a 66 months retracement. Not only that the price action looks similar but also time wise this fractal looks similar. This fractal will suggest that eventually we'll have to see another major swing low below 1.3490 before the market to enter in the next p…
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Daytrader21 avatar
Daytrader21 28 Февр.

Update 2: As expected from previous update 1.5550 has provided a great resistance level and we had a strong rejection. However we need a break below 1.5300 in order for the long term bearish trend to resume.

Daytrader21 avatar
Daytrader21 7 Март

Update 3: This week was a formidable week and it has proved once again that my Fractal map is working as we had an incredible 400 pips sell off from the highs. This move is over exaggerated and oversold at this levels and because we couldn't get a close below 1.5000 big round number it may be the case we will consolidate next week between 1.5200 resistance level and 1.5000 support level

Daytrader21 avatar
Daytrader21 14 Март

Update 4: As expected we indeed pushed down, however due to the broad base dollar strength across the board the momentum was strong enough to push below the big round number 1.5000. At this stage I'm afraid that we may not see again 1.500 as we have a strong weekly close below this level and also we're closing below an important support level.

Daytrader21 avatar
Daytrader21 21 Март

Update 5: Due to extreme volatility environment we have been trading in a very big range with 1.5000 level providing a good resistance level for the time being. As per my fractal model this should have been expected as we're in the blue circle area (see Figure 2).

Daytrader21 avatar
Daytrader21 28 Март

Update 6: Even though we're trading still below 1.5000 big round number our fractal map suggest we should see another move higher. so far the fractal map has been quite precise and in this regard we should follow the map. Next week 1.4800 need to act as support and we should see another false breakout above the big round number 1.5000

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Tulip Mania vs Bitcoin Mania

At beginning of the year I've made a big statement saying that Bitcoin is on a verge of major sell of. I was bearish on bitcoin because it was following the price action of Tulip Bulbs from 1634-1637. You can find that post here: How Fractals Can Explain Market Movements
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jezz avatar
jezz 18 Февр.

Just use a longer time chart, it may not be February, but it will happen. There are stories that bitcoin is used for money laundering, so... I still think it is a bubble

ulkater avatar
ulkater 18 Февр.

Nice comparation. Lucky the people who did mined some bitcoin in 2009-2010 and maded some $ this times.

Daytrader21 avatar
Daytrader21 18 Февр.

Jezz it already happened:)). Time is as important as the price when working with fractals

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Daytrader21 18 Февр.

@Ulkater Thanks

Metal_Mind avatar
Metal_Mind 19 Февр.

Bro this prediction is trully great. You managed to determine tehnically this sellof without takin in consideration fundametals. Ans the fundamentals are as follow. I got hot news that says the silk road seizure of more than 6 million bitcoin with the atack of an large payment procesore were was stole from clients another 4-5 milion bitcoins along with money laundering acusations is shuting bitcoin down rapidly. So bro, you did make a 100% accurate prediction purely tahnical witout knowing fundametals and it came true. That is REMARCABLE!!!.

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USD/JPY Time for Some Consolidation

In Figure 1 you can see the USD/JPY quarterly chart, and being able to see the bigger picture it gives you another perspective that USD/JPY has not gone up as much as you would have thought, and that it's just the beginning of a multi-year bull market.
  • Figure 1. USD/JPY Quarterly chart.
But at the same time we must look at price action as well so you may ask yourself what's next for USD/JPY as you look on the price action. Yen is already down 17% versus the dollar so far just for this year. In F…
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ilonalt avatar
ilonalt 26 Янв.

agree with you

Daytrader21 avatar
Daytrader21 15 Февр.

Update 1: As expected we headed lower and retested the 100.50 level which was a strong resistance in the past. We should now wait and see price retest the highs at 105.00 making a double top before to continue back down and retrace more

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How Fractals can Explain Market Movements


Although I'm using many tools to forecast the market by far the most interesting approach I'm using is Fractals. There are many ways to skin a cat and that certainly applies to market analysis methods as well. There are no guarantees when it comes to defining price movements but in my humble opinion the most interesting approach a trader can apply is the philosophy that a market is fractal in nature. Fractals not only that can explain price movement but it can give you a road map, so to speak, …
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Fiber: Head&Shoulder within an Head&Shoulder; Ultimate Reversal Pattern

On Feb 1st we have established a swing point and developed a minor H&S top. (Fig1. see blue circle). Using fractal analysis we can see the H&S pattern is expending on a much bigger scale on the daily chart.(Fig1. see red circle) The market is currently developing the right shoulder. We have an Head&Shoulder within an Head&Shoulder; an Ultimate Reversal Pattern. From here we should see a minor consolidation top right shoulder develop, which should spike up into 1.3200 50% retracement from the 1.3…
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alextiff avatar
alextiff 9 Май

I will keep an eye on this...

Dieselfx avatar
Dieselfx 13 Май

there so many h&s that are fake....trade the more reliable patterns

Daytrader21 avatar
Daytrader21 13 Май

@Dieselfx That's correct, there are many patterns that not work all the time. And a H&S is confirmed only after have a break-out of the neckline. The H&S is just a part of the analysis as you can see the H&S hold more weight when you take in consideration the Elliot Wave analysis.

Daytrader21 avatar
Daytrader21 29 Июнь

The H&S pattern has not been invalidated yet although price turned around we are still below the Head (from the H&S pattern) which confirms that the pattern is still valid just that price action took another shape. Also the H&S pattern become valid only after the neckline is broken. Currently the momentum has shifted to the downside and I'm expecting price to continue downwards from here. It seems that I was to pessimistic in my time horizon when I've made my forecast for eurusd.

Maria_r avatar
Maria_r 19 Окт.

+

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