sorry i’m new to your blog so i’m reading the older post now.

i fully agree with your logic on the buy / sell zones. just want to clarify one point.

for example, for sell zone, why do you emphasize that it should make a NEW HIGH then followed by trend line break?

surely for an uptrend to lose its momentum (then reverse) we should be looking for signs that it fails to make higher high and higher low, and therefore should look for lower high followed by lower Low. I learn the peak and trough concept years ago from Martin Pring.

Please correct me if my understanding is wrong.

thanks very much for sharing. You are doing a great job.

Hmmm, I thought I already gave you the tip in the previous post: “So, the curl down from #4 to #5 brings it to a CRITICAL POINT as it starts the curl down on the 4H: moving up from #5 to #6 will either take it up beyond #4 and interrupt the 4H in its down move, or else the 1H will move up from #5 to #6 and #6 will be a lower high than the high at #4. This is the way it typicallly it happens…”

Look at the CRITICAL POINT and let the market itself SHOW you EXACTLY which way it is going. You are not guessing nor looking for high probability patterns to show up, you are waiting for the market itself to SHOW you what it is doing and then go in that direction.

Yes, you can in advance set a TP just in case the market continues up to new highs on the #5 to #6 move on the 1H chart. You can buy if it breaks that high at #4. But as I said, that is NOT the natural movement of the market. The natural movement is to END the up move (by #6 being a lower high than #4, as I mentioned happened here) and begin a new down move. An extended up move beyond the #4 high is just a bonus for you as a result of the buyers being a bit over excited (for whatever reason) and DELAYING THE INEVITABLE move back down.

Personally, I never try to take a trade on these extensions, but rather move to a bigger chart.

I just reviewed your comment again. Thanks for sharing this with me.

I think what I should do is, have daily chart for my overall direction, 4hr chart as my setup chart and have 1 hr chart as my timing for enter and exit.

In this case I should buy at #3 then exit at #4 on 1hr chart then get in again at #7 then exit at #8 around 1.3400 by using 4hr chart as a comfirmation chart and trade only within 3 wave of 4 hr chart if the market still makes up wave more than 1 and 2 wave. Please correct if I misunderstood.

And anyone please feel free to comment.

Thanks so much for your comment.
Could you please tell me your tip what would you do in this case?
How would you set up the entry and profit target in this case? What is your methodology?

What I did was I entered on 1hr chart at #3 and used 4hr chart for my profit target at 1.342.and then today it could not reach my target and seem to heading down.

Thanks.

Now look at the 4H. See how it makes a #1 to #2 from the low of 1.3201 to the high of 1.3399? That matches exactly to the 1H making its #1 to #2 to #3 to #4 movement. Notice how the 1H has an up move, then a curl down, then another up move. That curl down happened while the 4H is still traveling from its #1 to #2! This is the NATURAL MOVEMENT that occurs! We know that the 4H will make a curl down from #2 to a #3 point. So to do that, the 1H MUST move down significantly. So, the curl down from #4 to #5 brings it to a CRITICAL POINT as it starts the curl down on the 4H: moving up from #5 to #6 will either take it up beyond #4 and interrupt the 4H in its down move, or else the 1H will move up from #5 to #6 and #6 will be a lower high than the high at #4. This is the way it typicallly it happens, and you see that is exactly what happend here!
The 1H moved down from a #6 that is a lower high than #4 all the way to 1.3291, and we see this turns out to be #3 on the 4H.
Look closely at the 4H after #2 high, and you can see the candles start coming down, but then there is candle that moves up, then it resumes moving down to #3 low. Isn’t that exactly matching the 1H moves of #4 down to #5, #5 up to #6, then #6 down to #7? See how monitoring two charts together gives you much more information about the moves than looking at just one chart?

Regarding buy and sell zones lesson, today (Sunday 25 April, market has not opened yet) when I looked at EURUSD,on Daily chart the market seemed to bounce from the support, on 4hr chart it broke the inner trendline (that what I thought) and on 1hr chart it already formed the first upWave and now it seemed to be in Tradezone point III to IV and may be retrace to point V which probably around 1.3345 and if it bounces from here I can look for entry if it bounces from this point and set profit limit at point VI which around resistance at 1.34200
I am confused what timeframe we are looking for entry and exit. I guess I have to be patient and wait for all lessons when you put things together.

Here’s something that’s been bugging me. Your approach is to check the fundamentals (i.e. check that there isn’t some major news that will affect the market) and then apply technical analysis to drive your trading. Why not have a robot do the second part? In other words, why not first check that world news isn’t going to be a factor for a given day and then unleash a robot to trade for that day. If the technical analysis is as mechanical as it seems, surely a robot would do that part better, faster, and more accurately than a human.