Golden Nugget

[Tavnaz]

Before this post, i want all the people who are brewing silly thoughts, in their minds that this guy is showing childish images or he is definitely an elliott wave trader ,you are wrong,please read this and have patience.
The nugget is not about trends it is about volatility how it combines with these principles.
The Green Line from A to B is a full Down trend.
Comprised of blue downs and red ups.
Black line is where this trend started,now see that C is Equal to A trend is now on the verge of indecision.

 

[Tavnaz]

Before this post, i want all the people who are brewing silly thoughts, in their minds that this guy is showing childish images or he is definitely an elliott wave trader ,you are wrong,please read this and have patience.
The nugget is not about trends it is about volatility how it combines with these principles.
The Green Line from A to B is a full Down trend.
Comprised of blue downs and red ups.
Black line is where this trend started,now see that C is Equal to A trend is now on the verge of indecision.

As long as A=C it is indecision,but A still has the power to make it a down trend.
A must be taken out for this thing to be declared an up trend.
Please refer to the image below.
And get the feel of the grander things happening around A and C.
Please notice i am not saying anything before A or after C exists.
But why A can still make C turn
And why we can still call this whole green line a down trend is shown in the image.(Remember as long as C below A it is down, our first rule)

 

[Riskyman]

As long as A=C it is indecision,but A still has the power to make it a down trend.
A must be taken out for this thing to be declared an up trend.
Please refer to the image below.
And get the feel of the grander things happening around A and C.
Please notice i am not saying anything before A or after C exists.
But why A can still make C turn
And why we can still call this whole green line a down trend is shown in the image.(Remember as long as C below A it is down, our first rule)

No one brews any silly thoughts. I have a genuine question..... Why no blue & red arrows from B to C? One way run? how do we know its gonna run from B to C? I mean how does a trader know where point B is as its a substantially a move good enough to be traded on the upside from B? How does one know how/where the downtrend from A-B ends? Im sure you know the answer but you wont tell us just as easily right?

PS: Need some sleep. Will be happy to hear more from you tomorrow. Good nite folks.

 

[mohan.sic]

Now there is a very small but very valuable observation regarding any trend.
Now i want you to take a few reference point, Point A and reference Point B.
And Reference Point C

Now listen to this
from my point of view or your point of view the trend should always be down if reference point C is always below Point A.
No matter how high Point C is above B i will always call it down trend.
Do you agree.
Please see attached image

i dont agree

 

[Tavnaz]

What is a Candlestick?
A Candlestick was made by first Technical Analysts to record price movements.
As my forex education serves Bar charts(OHLC) came before Candle stick,but candle stick was invented because it provided more insight.
You can just look at a big bull candle and say wow that looks a big up move,but in bar charts you have to look deeply to get the same information.
But as is the destiny of every good thing ever produced in wrong hands,things loose their insightfullness.
So foolish people started using candles ,and started naming them.
Three White soldiers.
Morning star
Evening star.
Engulfing
And inside bar You can name them too.
But in reality candle stick was made to record movement of price in a give time with a reference point.
hourly candles record hourly movement of price
4 hourly candle records movement in 4 hour.
Candle looks bullish no matter how many times price dropped in that time.
You see its all about movement.
Are we clear?
Lets hear some replies from thread readers,regarding the comprehension of material provided,before more posts.
I will try to map what comes next,Thanks and regards

 

[Tavnaz]

i dont agree

You must unlearn what you already know ,before you can grasp this.
Should i rephrase:
The trend from B to C shall always be down in reference to A to B as long as C below A
Even a 7 year old would agree then.

 

[Smart_trade]

What will you call a move from B to C ? Is it a smaller degree uptrend within the larger down trend or something else ? and where does this smaller degree uptrend start ?

Be at liberty to ignore these silly thoughts if they are obstructing the flow of your thread. Just trying to understand the thoughts....

Smart_trade

 

[Tavnaz]

No one brews any silly thoughts. I have a genuine question..... Why no blue & red arrows from B to C? One way run? how do we know its gonna run from B to C? I mean how does a trader know where point B is as its a substantially a move good enough to be traded on the upside from B? How does one know how/where the downtrend from A-B ends? Im sure you know the answer but you wont tell us just as easily right?

PS: Need some sleep. Will be happy to hear more from you tomorrow. Good nite folks.

Everything will fall into place at the end.
For now you must accept what i said,blindly.
Your trader urge to predict if B to C will happen and if you could catch it is trying to take you over.you must suppress the urge.
First you must see and know, how it happens before you can trade it.

 

[Tavnaz]

What will you call a move from B to C ? Is it a smaller degree uptrend within the larger down trend or something else ? and where does this smaller degree uptrend start ?

Be at liberty to ignore these silly thoughts if they are obstructing the flow of your thread. Just trying to understand the thoughts....

Smart_trade

I will get back to you on that in coming posts.

 

[mohan.sic]

What is a Candlestick?
A Candlestick was made by first Technical Analysts to record price movements.
As my forex education serves Bar charts(OHLC) came before Candle stick,but candle stick was invented because it provided more insight.
You can just look at a big bull candle and say wow that looks a big up move,but in bar charts you have to look deeply to get the same information.
But as is the destiny of every good thing ever produced in wrong hands,things loose their insightfullness.
So foolish people started using candles ,and started naming them.
Three White soldiers.
Morning star
Evening star.
Engulfing
And inside bar You can name them too.
But in reality candle stick was made to record movement of price in a give time with a reference point.
hourly candles record hourly movement of price
4 hourly candle records movement in 4 hour.
Candle looks bullish no matter how many times price dropped in that time.
You see its all about movement.
Are we clear?
Lets hear some replies from thread readers,regarding the comprehension of material provided,before more posts.
I will try to map what comes next,Thanks and regards

--------------------------------------
wan to add this:

At a given point of time a 5 mt candle could be in a bullish pattern ( buy signal for 5 mt chart reader), a 15 mt candle could be bearish pattern ( sell signal for a 15 mt chart reader ) and a hourly candle could be in a different pattern from daily ones. So at same time these pattern signals change depending upton our timeframe setting.