Cycle Trading

Long GBP/JPY at 133.04. I'm in this one for the long haul based off some patterns and cycles on the daily and weekly charts. Not sure if my timing is right just yet for entry, but I'm in now regardless.

That entry was spot on.... for a scalper.
Waited out time and nailed the bottom on a better entry. My plan is to slowly scale in and my stops are based on the daily charts. My trade amounts are pretty small to account for that so 30 pips in the red was no big deal and I had already eye balled possibly getting in at this lower price anyway. I'm locking profit and I'll take the hit on the higher entry if price drops below the lowest entry. If that happens, I'll just look for a good spot to re-enter long unless something comes a long to change my long term outlook/plan.

Before and after charts below.

I forgot to update these. That 2nd entry was spot on, eh?

http://img237.imageshack.us/img237/9...16Dec29.th.gif

GBPUSD finished out it's second circle on the 1 hour chart. Triangulated price and time pretty much close to the hour and pip. I didn't trade it though because I was too wrapped in up G/Y.

Also of note is how the circle of the first pattern not only defined the cycle bottom but the cycle top as well. It's also interesting how the bottom triangle of the first pattern didn't amount to much, but the parallel line up top defined the double top and went on to further define s/r.

Chart below is a re-occuring cycle I adjust for the session open. Cycle is static and generally has nice moves at the same points in the cycle every day. Nice hit today.

I wrote up a guest blog post on Akuma99's blog here: http://beginnertrader.com/blog/techn...-off-the-heist

I'm new here but enjoy the work being done. I see Cycle Trader software being used. What are the other preferred tools for these analyses?

Hi and welcome. I use Cycle Trader for the big cycles. Weekly charts. I've also a got a Wave 59 subscription that I'm still playing around with. I'll probably start posting more charts from that once the forex data feed becomes active.

Other than that, everything else is just drawing lines in Metatrader 4 using Gann type techniques combined with stuff I've picked up from Brad Cowan's books, Michael Jenkins, and stuff I've developed on my own.

My blog goes into a lot more detail on some of the things I do.

Thanks for the kind response. It seems we have much in common as I also enjoy Mr. Cowan's work. I don't have Metatrader or Wave59 but play pretty regularly with GannAlyst and MarketWarrior. I also study a number of astrological and Gann topics as well as elliptical anayses. All of that said, I'm pretty young and dumb but study hard and am approx. 3 years into the studies (12 years into trading... but no Forex).

I'll check in periodically to see if I can cast some ignornance on something ;-).

just a question, out of curiosity.
with all these lines spread among the chart , do u think that price is not gonna hit any of them at any place on the chart? I think it must hit any line of these.
just my humble opinion.

The lines act like a road map. Price will take the path of least resistance most of the time. But the main thing is to watch for time. When price rises or falls into a vertical line it will usually react. Sometimes a complete reversal, sometimes just a bar or two of reversal, and other times just a few ticks of reversal. When price reaches a vertical line at support/resistance the reaction is usually stronger.

A simplified example is this trade i made yesterday. I shorted when price was already in a down trend and then rose into a time line. Exit and reversal going long was price falling into the time line and pivot point. You can see other times on that chart where price pulled a major reversal on those time lines. So knowing when those lines are coming up helps clue me in on when a trade is shaping up.

http://img237.imageshack.us/img237/3...an05jw8.th.gif

The trick is figuring out the timing lines. That's where the Gann techniques come in for squaring price and time, etc. The Gann Squares with all of the angles and lines is too much to explain in a post, but the premise is the same.. wait for time and look for a reversal.

GM - its amazing how this timing works. I have other reliable source for reversals as well and they work like magic. Very nice trading buddy

Squaring a range of price picked up the timing mark for the high to the exact bar.

I've adjusted the square for that last big swing. Currently short from 1.5226 on a timing mark based on intersecting Gann fan lines. I've got boxes at my targets.

There's also a huge triangle play on the 4h chart so I might be looking short for a few days and adding on at pull-backs to price and time.

That short didn't pan out too much. I was stopped out at 1.5216 for +10. There was a symmetrical pattern shaping up (mirror foldback) so I looked for confluence against price/time. I had a sell limit order trigger over night at 1.5317. The top hit to the bar on a division of time. Trailing stop triggered at 1.5187. I re-entered a short at 1.5270 based on a division of time on a 1m chart that was in confluence with time on the 5m chart. Exit was a trend line at time on the 1m chart at 1.5168. It looks like price dropped further down to the session low and I've got a lot of time lines hitting at the same time, but I'm done for the day.

I haven't been diligent in keeping this journal current. Sorry about that. A lot of stuff going on.

But here's the most recent entry based on price and time hooking up. Long GBPUSD. Circled areas are market reactions where the cycle lines were spot on.

I got sick of blogspot so I've created my own domain and moved the blog to wordpress.

The new blog is now at www.time-traders.com. Thanks to all of those that have followed the other blog and left me comments and messages of support and encouragement.

Here's the updated GBPUSD 1h chart. Made good pips longing twice. Then a long that turned to a healthy loss because I moved my stop loss twice (stupid). Shorted last Friday near the close for decent profit. Went long again on time and currently looking to short at time.

Can you see how the time trades have been spot on? Who says trading time can't be mechanical. Just need to gauge the range available and risk accordingly.

Shorted twice. Exited on time. Shorted again on the double top. 1st stabs at the recent short got stopped out. Resorted to the 1 min timing chart to get in.

Below are a couple of screenies of the trades I setup overnight on the GBPUSD. I basically had two 1h charts with different Gann Squares. Woke up to some serious pippage! My blog goes into the details. www.time-traders.com.

Made good pips shorting the pound again yesterday. Too lazy to describe here but there are a lot of details at my blog. www.time-traders.com.

But I will put up a couple of screenies not on the blog. Price and time squaring and inverse mirror image. Who says you can't time the market.

Wow. Lots of action in late US/Earl Asian session. I've been short GBPJPY since early this morning and it's dropping like a rock. I'll analyze that one later.

I also shorted the GBPUSD a bit late, but price had met up with time right on the 1x1 angle. I had my allotted margin already used up on GBPJPY, but what the heck... a little more margin on a primo setup might just be enough to bend the rules. Currently bouncing below the updward 1x1, a trendline, and a division of price. 100 - 110 pips worth. I think it's got room to go down, but I might close it out just because this trade broke the rules. Look at how price bottomed out right on the time line to the bar. Can't argue with price-time.