Experimental Circle Analysis of EUR/USD
I am conducting a new analysis on EUR/USD based on the buying and selling pressure areas on the 4-hour and daily TF. I've posted something on the EUR/USD topic but I don't want to keep bothering them with this, especially since there are a lot of new traders out there and I don't want to impact their trading with an experimental system.
I welcome others to join in and help figure out how to improve this system. I've created the basic structure and now I'm tracking the price movement in real time to see if it's true and making demo trades.
First a basic look at the 4-hour EUR/USD chart. I noticed how it had a circular tendency. So I started filling in the spaces with circles. Then I started checking the daily charts and did the same thing. I then merge the daily selling pressure and buying power areas with the 4-hour areas into one composite chart.
The rules of the system are simple. Price moves between zones and doesn't like to penetrate them. The smaller 4-hour zone is more respected than the larger daily zone. The 4-hour area creates a path for price movement. When given two 4-hour paths to choose from, Price chooses the one that least violates the larger daily system.
The chart I've included shows forecasts based on this activity in October 2009. However, the further into the future you try to map these circular areas, the less reliable the results become, at least that's what I think.
Again, this is experimental. I'm just demonstrating trading for fun and to see how these areas affect price movements and what prediction rules can be learned about them. As the price continues to reveal itself over time, it should provide a good basis for many interesting analyzes of the system.
See the latest chart here - heavily improved and corrected
http://www.forexfactory.com/showpost...3&postcount=40
I welcome others to join in and help figure out how to improve this system. I've created the basic structure and now I'm tracking the price movement in real time to see if it's true and making demo trades.
First a basic look at the 4-hour EUR/USD chart. I noticed how it had a circular tendency. So I started filling in the spaces with circles. Then I started checking the daily charts and did the same thing. I then merge the daily selling pressure and buying power areas with the 4-hour areas into one composite chart.
The rules of the system are simple. Price moves between zones and doesn't like to penetrate them. The smaller 4-hour zone is more respected than the larger daily zone. The 4-hour area creates a path for price movement. When given two 4-hour paths to choose from, Price chooses the one that least violates the larger daily system.
The chart I've included shows forecasts based on this activity in October 2009. However, the further into the future you try to map these circular areas, the less reliable the results become, at least that's what I think.
Again, this is experimental. I'm just demonstrating trading for fun and to see how these areas affect price movements and what prediction rules can be learned about them. As the price continues to reveal itself over time, it should provide a good basis for many interesting analyzes of the system.
See the latest chart here - heavily improved and corrected
http://www.forexfactory.com/showpost...3&postcount=40
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