Ollio's Gold - Supply and Demand

Ooooops, I forgot, and the only time you will ever have fun trading is when you win!!!!

Tuesday July 19, 2016

​Anybody want to try interpreting the chart posted in my previous post?

​Anyone who can interpret the chart posted above gets a free, one month subscription, to use the Financial Instrument Analyzer!

hi the 1 hour and 4 hour is a no trade, they are in a neutral price movement,
The weekly, day, 8 hour and 2 hour are in a bearish price movement ,should be a decent drop in price!!

​Nice try!

Here's the key:

The Day indicates we have a High which means, at the close of the Day yesterday (i.e. 12:00 a.m. UTC-5:00), we prepare to enter Short @1333.12 with a stop loss @1333.68 or slightly above. It's a good idea to use a pending order and go snooze!

On the Week, we have a Bearish Consolidation with Demand level @1297.76 which becomes our target level for this trade.

Note that we need to monitor the app since the market might not reach the target level.

excellent app how do I subscribe

Thursday July 21, 2016

​Is there anyone who would like to give a shot at interpreting the intraday chart posted above (i.e. Post # 1,168)?

​OK everybody, times up.

Here's how it works (see chart in Post #1,168 above).

First, notice we will have a new 8 hour candlestick at 8:00 UTC-5:00.

​Second, notice the Day is in a Bullish Consolidation.

Now based on the chart, we have two trade setups:

1) on the 4 Hour, we have a High which means we will enter the market Short @1322.00 with a Stop Loss @1322.55 and Take Profit @1314.16.

2) on the 8 Hour, we have a Low which means we will enter the market Long @1314.16 with a Stop Loss @1313.24. In this case we do not enter a take profit, instead we will let the trade run. We will manually take our profit when the app indicates a High. Alternatively, you could have decided to set a Take Profit at the Supply level indicated on the Day @1325.32.

So basically, when the new 8 Hour candlestick opens, we expect the market to first go Short as per the 4 Hour timeframe and then Long as per the 8 Hour timeframe.

Cheers.

Monday July 25, 2016

​Can anybody read this thing (see chart in previous post)?

Go ahead and post your view here below!

Hi there , on the 8 hour there is a target high, which means the market is long towards 1319.26 with a target price 1322.41

[quote=Genesistrade;9051665]Hi there , on the 8 hour there is a target high, which means the market is long towards 1319.26 with a target price 1322.41[/quote

Your analysis is correct, you can go Long as per the levels indicated on the 4 Hour and set your Take Profit as per the levels indicated on the 8 Hour @1319.26 and/or @1322.41 although, by doing this, you would be exiting the market prematurely, here's why:

​(1) the Week is in a Bullish Consolidation while the market remains between 1317.85 (Short) and 1274.69 (Long). In this configuration, we expect the market to go long and break out above the Short level @1317.85 towards the Supply @1366.37.

(2) the Day indicates we have a Low which means the market is Long above 1311.77. Using this chart, you would enter a pending order Long @1312.31 or slightly above with a Stop Loss @1311.77 or slightly below. Since the Low of the candlestick on the Day matches the Low of the candlestick on the Week, we assume this will be the Low of the Week.

(3) since the direction of the market on the Day is Long, we would favor the Long signal on the 4 Hour chart and enter Long as per the 4 Hour timeframe.

(4) optionally, you can choose to enter Short as per the 2 Hour timeframe but one must remember that the market is Long on higher timeframes. This would be considered a scalping trade.

Notice how the application indicates that we have a Low on the Day and a Low on the 4 Hour. You would also note that the Low on the 4 Hour is higher than the Low on the Day. In other words, the market is making a series of higher lows. When the market makes a series of higher lows, by definition, we're in a Long market (classic textbook definition of a long market).

As you have seen, the rule for trading with the FIA is quite simple: Sell the Highs and Buy the Lows.

In fact, this simple rule also happens to be your optimal trading strategy!

To illustrate my point, let's look at a very recent example by referring back to the two following charts:

(1) http://www.forexfactory.com/attachme...2&d=1469035976 (taken from Post#1,163 above for Tuesday July 19, 2016), and

(2) http://www.forexfactory.com/attachme...9&d=1469530415 (taken from Post#1,171 above for Monday July 25, 2016).

Using the first chart, on Tuesday July 19, 2016, as per the High signal on the Day timeframe, you would have entered Short @1333.12 or slightly below with a Stop Loss @1333.68 or slightly above.

You then would have waited to close your trade as per the second chart, which means on Monday July 25, 2016, as per the Low signal on the Day timeframe, you would have closed your Short trade in maximum profit!

Any new chart for today?

No, I won't be posting any new charts today.

Cheers.

[quote=jackeollio;9059084] The market has just completed it's move towards it's previous Weekly Supply level @1366.37 and is expected to continue towards it's current Weekly Supply level @1373.50.

We still have no exit signal or take profit level for our last Long signal on July 25, 2016 (i.e. Day indicates we have a Low, see chart http://www.forexfactory.com/attachme...9&d=1469530415), therefore, we remain Long from 1312.31 while above 1311.77.

Tuesday August 2, 2016

As you can see from my previous post, the FIA has once again, successfully identified the High on the Day chart.

It is precisely at this point that it was time for you to take your profit on the Buy signal we had received on July 25, 2016.

As mentioned before and as illustrated in my latest posts, the rule for achieving optimal profits using the FIA is very simple, Sell the Highs and Buy the Lows!

Note how, as with the previous charts, the High on the Day timeframe corresponds to the High on the Week.

Also note how the Low on the Day corresponds to the Low on the Week!

Furthermore, I highly encourage all or any of you who remain skeptical to closely examine the charts posted since July 19, 2016 by referring back to Post #1,163 above, http://www.forexfactory.com/showthre...74#post9040274 and all the way up until the most recent chart I have posted today (http://www.forexfactory.com/showthre...9069323​) and see for yourself.

Friday August 5, 2016