Trend Reactionary Numbers A Deeper Explaination
Tired of Trading using Lagging Indicators like MACD, EMAs,
and the real mysterious Stochastic RSI. Are you always one
step behind the Forex market, left frustrated and baffled?
Well I am here to tell you its not your fault! You were lead
down the bunny trail by all the propaganda about the Public
indicators as I call them. They come with all charts so they
have to be good,right? Wrong. If you ask 5 different traders
how they use these indicators you will get 6-7
hallucinogenic answers. What if you had a Forward looking
indicator based solely on price and wave patterns that was
battle tested in the interbank market? What if this
indicator could tell you with a high degree of accuracy
where a currency would reverse of if the level was broken
zoom to the next preplanned level? Do you think you would be
more profitable knowing these points ahead of time? You bet
your bananas you would!
Lets Go one step further. What if this indicator also
helped you determine if the trend of a currency would
continue? You could then fade(go against) the noise with
confidence and make more Pips.
Do you think that this indicator would be of substantial
help in your trading?
Of course it would help you gain massive pips.
The Indicator I am about to introduce to you is my Trend
Reactionary Numbers. My students call them TRNs for short,
and they wouldn’t think about trading without them.
Trend Reactionary Numbers are like super unknown pivots for
the retail trader(except major banks have similar points.)
These Points are major points in the market place.
Currencies with gravitate to them and also at times be
repelled by them.
How did I come up with these numbers that my Inner Circle
of traders calls magic? This is a question I always get
asked, I will never reveal the method but I am happy to
share the output. I will give you an overview though, I have
developed these numbers by follow what all major banks look
at. That is Chaos theory and a similar system to Elliott
wave theory. Chaos theory was first introduced as a model by
Ed Lorenz back in 1965. He applied the theory to
meteorology. It has come to be a major landmark for changes
to current thinking on mathematics,economics,biology and
statistics. Like Fibonacci levels Chaos Theory can be found
in Heart pulses, clock’s oscillating movement like a
pendulum and economic fluctuations, they all show a dynamic
non linear behavior. With a Fibonacci Wave count added to
the Chaos model I can ascertain a very accurate model for
future support and resistance. Now the main point is that
these points are never fixed they float. They are have
usually been good for 3-6 weeks. Since the market is always
in Flux(Chaos.) I reset these points when the market signals
me its time to reset them. I do not manufacture these points
the market does. These are my version of major wave points
that are defined.
These points are the major points that I am looking to
exploit in the market. They help me define low risk high
reward areas to take a trade. They also help me stay out of
the market when the noise level is just to high and prevent
me from taking suboptimal trades. So they are extremely
valuable. I am always looking to work to and from these
points to gain major pips. Since these points are forward
looking you can trade them as a stand alone system.
Using a harmonic wave calculation I can gauge my s/l at
these Trend Reactionary Numbers. Its easy to find just go
back and get the Average True Range (ATR) of a currency for
the last 20 days. I will look to buy a break of these points
and use a percentage of the Average True Range as a s/l. It
is usually 35-50 pips. Conversely I will look to sell
Rallies at these points always gauging market price
momentum. Since these points are based on three major
theories, we find that markets always move from irrational
exuberance to dysphoria. All price action will come back to
the moving middle eventually. These points give you those
levels with a high degree of accuracy.
Trend Reactionary Numbers are usually anywhere from 150-300
pips away from each other. Sometimes they can be a smaller
range, but as I said the market manufactures these points I
just follow them. If the market is approaching a TRN on the
upside(Its rallying) I will look to sell it, and gauge the
markets price action at that point. Conversely if the market
is falling to one I will look to buy it. i look to catch
moves from one TRN to the other, of course I don t always
get that, but I employ a trailing stop when in the money. As
Wd Gann said “Never make a good trade turn into a bad trade,
protect your capital.” I and many of my students catch these
moves quite frequently, these points are amazing. I have to
say at times I have disregarded them, somehow thinking since
I found them i could toy with them. I have always gotten
burned. Just being candid here.
Here are Some Trend Reactionary Numbers for the month of
January 2011. They should be good for anywhere between 3 to
6 weeks. Like I said they are in flux and the market sets
these.(I plot these points for all the major Currency Pairs
and the Related Crosses. Cross pairs such as
GBP/YEN,GBP/NZD,EUR/YEN,EUR/GBP,AUD/YEN,AUD/CAD etc. They
are extremely accurate.) Each Currency has its own
calculation, based on its Fibonacci wave and chaos
signature. I can also plot these points for Stocks and
Commodities upon request.I will post three majors here. You
can use these on your charts to see there accuracy and
power. The ones listed will be Euro,GBP and GBP/Yen:
Euro/Dollar: 1.3610,1.3487,1.3330,1.3143,1.3012,1.2935,1.2747,1.2576,1.2040,1.1864
GBP: 1.6123,1.5981,1.5688,1.5521,1.5467,1.5246,1.5025,1.4723,1.4490,1.4027,1.3723,1.3588
GBP/JPY:144.98,140.86,139.42,135.93,132.44,130.70,128.95,127.48,125.63,119.99,118.66
Remember as I always say Enjoy The Party…Dance Near The
Door!
For those That are Interested in the new membership site (coming soon) to get All the TRNs and the In-between-Points please email me. You will be put on the waiting list. email strignanostrns@gmail.com
