There is nothing new in the systems components. I didn’t re-invent the wheel. The various parts of the system have been around from thirty to over 70 years. It is not the parts of the system, but how they are used that is proprietary. The system gives specific entry and exit points. The exit points are called price objectives and targets. They vary depending upon the time frame you are using and the cycles within the time frame. The system also provides a specific stop that says the entry was wrong. The entry is confirmed by an indicator as are the exits.
For up moves the price objectives first offer resistance to a move higher and once price goes through the price objective it should act as support for a retracement. The opposite is true for down move.
The price objectives shown in a blog may vary because of the expanding and contracting of the chart size that is posted. The system uses price, time and a pressure indicator to estimate the various targets and price objectives. The system is complex in that there are trends within a trend, or moves within larger moves. Trend is really a bad term. One can take a symbol and there will be both up moves and down moves within a series of charts. So what is called trend can vary from chart to chart for any given symbol.
By definition an up trend is one that has higher highs and higher lows. A down trend is one that has lower highs and lower lows. Therefore if you break it down there is a move up to a higher high and then a move down to a higher low. It depends on what your trading style is how you trade this. If this is on a monthly chart a move to a higher high with have a series of trades that move up as well as a series of trades that move down on a lower time frame chart. So an up trend shown on a monthly chart may show as a down move on the daily chart.
If you look at today’s monthly chart of the April gold futures contract (GCJ0), 02-05-10, you have a parabolic rise to new highs from the 2000 low.
There is a retracement taking place at this time on this chart.
A look at the weekly chart shows an up trend and a sight retracement in progress.
The daily chart shows a major up trend and a down trend within that move.
If you look at a 15 minute chart you are in a major down move.
GCJ0 15
So when someone tells me the trend is up or down I have a whole series of questions to ask. Most people use the daily chart as a frame of reference and that could be a big mistake at times.
Trading One 
You must be logged in to post a comment.