My new chaos findings implemented in forex trading

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Paul&Paul
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My new chaos findings implemented in forex trading

Postby Paul&Paul » Thu Jan 13, 2011 9:44 pm

Hi there,

The aim of this new thread is to give a glance to some practical aspects of chaotic behavior in trading forex. It is a result of my persistent studies on fractal nature of financial markets. I am sure you will find the expertise on the subject and evidence provided really thrilling and amazing. How far it is going to take us depends solely on us.

I will begin with today's EURUSD M30 chart in order to identify the most important targets under way, as well as borders of chaos and order. Each target results from triggers hidden in the fractal structure. There are triggers up and triggers down and they are independent of each other. They ignite all minor and major movements called trends. I will provide you with information unavailable to the naked eye.

The last trigger up set two targets: 1.3335 and 1.3395. The first one marks the border of chaos. Expect chaotic changes inside the red area. In trading terminology - consolidation/distribution. The last trigger down set two targets: 1.3287 and 1.3268.
Notice that 1.3168 is significant for two reasons. It marks the target of the first trigger up which showed on January 7. It also shows a new trigger up
@ 1.3168 for which the Feigenbaum's value 4.669 is going to take away the prices from that repeller to 1.3395.
Expect sharp reaction at 1.3395 and little prospects as for now to dip significantly lower than to 1.3268.
The market may retrace to a UPO @ 1.3277 which lies in the middle of the two targets from the trigger down.
EURUSD is set to revisit a UPO from December 14 which lies at @ 1.3402. Note that UPOs already exist in the system while our targets are possible future developments. When a UPO and a calculated target coincide together it makes the level very significant.

The study of chaotic financial systems shows that most stop loss orders do not provide any margin protection at all. I will discuss this issue later on when you will learn that standard price charts are good for accounting purposes but poorly reflect the true dynamics of the system. You may have never heard before that the market may be realizing targets of buyers and sellers at the same time.
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eurusd m30.gif
The study of chaotic financial systems shows that most stop loss orders do not provide any margin protection at all. I will discuss this issue later on when you will learn that standard price charts are good for accounting purposes but poorly reflect the
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Last edited by Paul&Paul on Sun Jan 30, 2011 4:46 pm, edited 3 times in total.

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genlogins
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Postby genlogins » Thu Jan 13, 2011 10:54 pm

Uouuuu.... fractals, chaos, repellents ........

I just think EU still going up to the value at begging of January, may be @ near 1.34000 than will fall for quite a few pips.

I am expecting tonight to get down, so I am not sleeping yet.

Your theory its a bit complicated, may be I will read it later again, or you could put up in simpler steps.

Thanks
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EURUSD consolidates inside the red area

Postby Paul&Paul » Fri Jan 14, 2011 9:17 pm

1.3335 and 1.3395 marked chaotic changes. In trading terminology - consolidation/distribution. EURUSD did little on Friday. The rise of the euro is due to Trichet, a figure not quite familiar in the theory of chaos but popular elsewhere. Most profitable traders will return now to French fries without saying.
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AUDUSD triggers trends of many pips

Postby Paul&Paul » Sat Jan 15, 2011 2:34 pm

AUDUSD is a cross which should be valued for its properties.
It needs to be understood very precisely that one cannot view the triggers from the angle of the Elliott wave theory.
Triggers do not contradict the Elliott theory. On the contrary, the chaos analysis proves that the Elliott theory is an idealized form of the market's behavior, just like squares, triangles and circles from the Eukledean geometry.
The beginning of a trigger is marked by the narrow edge of the ellipse. It is not hard to notice that the market dipped below the trigger and the Elliott principle says that such an impulse wave has been nullified and cannot be counted further.
However, we need to forget that principle if we want to establish true borders of chaos.
The principle of chaos is that the market is bound to run away from the repeller at an exponential rate. Maybe not immediately, but the energy is already there. It is a time fuse grenade. How much explosive inside is determined by the value of the trigger. When the fuse is ignited upon release of a lever, prices shoot up or down. The beauty of it is that there are limits to it set by chaos. The market will not go to infinity. The market will not choose random targets either.
The limit for the bottom trigger @ 0.9845 was set to 1.0000.
This example is an excellent example showing the major differences between a standard Elliott analysis and the chaos analysis.
The border of chaos was approximated with 161.8 from Fibonnaci tools, yet we could apply it only more than one day later when the market had already done 71 pips from the trigger. :wink:
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And here comes the latest update of AUDUSD

Postby Paul&Paul » Sat Jan 15, 2011 2:57 pm

And here comes the latest update of AUDUSD.
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Re: My new chaos findings implemented in forex trading

Postby aliassmith » Sat Jan 15, 2011 4:10 pm

Paul&Paul wrote:Hi there,

The aim of this new thread is to give a glance to some practical aspects of chaotic behavior in trading forex. It is a result of my persistent studies on fractal nature of financial markets. I am sure you will find the expertise on the subject and evidence provided really thrilling and amazing. How far it is going to take us depends solely on us.

I will begin with today's EURUSD M30 chart in order to identify the most important targets under way, as well as borders of chaos and order. Each target results from triggers hidden in the fractal structure. There are triggers up and triggers down and they are independent of each other. They ignite all minor and major movements called trends. I will provide you with information unavailable to the naked eye.

The last trigger up set two targets: 1.3335 and 1.3395. The first one marks the border of chaos. Expect chaotic changes inside the red area. In trading terminology - consolidation/distribution. The last trigger down set two targets: 1.3287 and 1.3268.
Notice that 1.3168 is significant for two reasons. It marks the target of the first trigger up which showed on January 7. It also shows a new trigger up
@ 1.3168 for which the Feigenbaum's value 4.669 is going to take away the prices from that repeller to 1.3395.
Expect sharp reaction at 1.3395 and little prospects as for now to dip significantly lower than to 1.3268.
The market may retrace to a UPO @ 1.3277 which lies in the middle of the two targets from the trigger down.
EURUSD is set to revisit a UPO from December 14 which lies at @ 1.3402. Note that UPOs already exist in the system while our targets are possible future developments. When a UPO and a calculated target coincide together it makes the level very significant.

The study of chaotic financial systems shows that most stop loss orders do not provide any margin protection at all. I will discuss this issue later on when you will learn that standard price charts are good for accounting purposes but poorly reflect the true dynamics of the system. You may have never heard before that the market may be realizing targets of buyers and sellers at the same time.


To tell you the truth I thought I would laugh when I read this thread. To my
surprise I am intrigued.

BTW, what is an UPO?
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UPO

Postby Paul&Paul » Sat Jan 15, 2011 4:48 pm

Aliassmith,

Laughter as a surrogate of happiness lessens the stress.
A UPO is an Unstable Periodic Orbit.
By the way, what is BTW? :wink:

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Postby TygerKrane » Sat Jan 15, 2011 5:04 pm

alias,
He started a thread here a little over a year ago (Nov. '09), you can go through that as well if you want more examples of analysis around this phenomena.

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Trade opportunities on EURJPY

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Postby aliassmith » Sat Jan 15, 2011 5:41 pm

TygerKrane wrote:alias,
He started a thread here a little over a year ago (Nov. '09), you can go through that as well if you want more examples of analysis around this phenomena.

Again, you have to be logged in to see the images.

Trade opportunities on EURJPY


Thanks for the link. His idea is interesting in a string theory kind of way :)
I do see similarities between his UPOs and targets I pick from PA.
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GBPUSD struggles below big figure 1.5900

Postby Paul&Paul » Sat Jan 15, 2011 11:20 pm

GBPUSD struggles below big figure 1.5900. Its picture is pretty complicated due to the fact that it is hardly retracing and yet it is not breaking much higher either.
Let us observe that some GBPUSD triggers up are of really big value.
I marked target 1.5875 as done, later only marginally crossed. It does n ot matter where it comes from. More important is that there are a couple of other triggers which targets lie very near: 1.5878, 1.5890, 1.5904.
A 30 pip area already looks very messy.
These targets should be confronted with UPOs now. For that we need to look back into the history from where it plummeted in a turbulent flow. First notice that the area of 1.5900 on December 13 was sharply denied.
GBPUSD has now returned to a UPO @ 1.5873 from that day. If you look back a little farther you notice that 1.5904 from November 23 was very heavily sold. To force those positions to close we need a sharp movement to 1.5979. This is another UPO waiting to be revisited and a good bite to take, expecting a stampede of stoplosses.
GBPUSD is not far from that UPO and possesses enough energy in the system to do so. The question is whether it needs to retrace before to pack up more public.
The triggers down invariantly show two targets: 1.5772/64 and a farther one 1.5667.
To defend those short positions GBPUSD needs to be kept below 1.5900 for a longer period and seek fortune in an attempt to trigger selling. Yet till 1.5611 no harm or little harm can be done to longs.
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