Some of my forecasts

[4xpipcounter]

Usd/inr

The drop for this pair started on Monday, and then we had a sharp correction. This is probably just a tease as the bulls faked the bears out. The pair is OB and at extreme SD readings on the daily and weekly. The pair is preparing for a drop to the daily kijun at 44.92. That area could be solid S. That is also the TK combo on the weekly.

 

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No trouble, http://www.gcitrading.com/demo.htm

can you pl give me link to gci demo ac.sorry for the trouble

 

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Static S&R's VIII--Gold

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I finally found it. An exception to the rule. The bounce made it to 1.6395, but the 38.2% level is 1.6402, so it was 7 pips short.

Notice the move straight across on the WS1 at 1.6364. In terms of price action, the next break was bound to be to the south, because of it going due east all that way.

The 1.6264 level is the WS2, which is my forecasted containment from the Weekly Forecast. Provided I'm right, then it should be due north on Friday.

The arrow shows the minimum requirement for the S&R's. This was a continuation, so minimum requirement is back to the WS1 (in this case).

 

[4xpipcounter]

Just to add some clarification. This topic came up via an e-mail I got
Those lines for my support and resistance are not drawn after the event. In other words, I did not draw that red line (Which is my weekly 2nd support--WS2) after price action hit. That line was already determined at the beginning of the week.

I've had a lot of discussion in my blog about currency correlations. Whew! There are so many myths associated with it. I got some posts coming up that will contain many of the notes from that discussion. I just wanted to pass it on to our little group here. Mathematically, I will blow the myths out of the water, yet, it is so obvious what I'm going to show.
Here's another nice thing. You know how it is in trading there are no absolutes? How many things happen where there are no exceptions? Don't jump to any conclusions. Let me do my posts, then tell me I don't know what I'm talking about.

 

[4xpipcounter]

Forex Mathematics

To draw up to what I am going to call "Forex perpetual price motion", I need to share some facts.
We need to go back to our basic algebra class in order to understand this fact: EUR/CHF*CHF/JPY=EUR/JPY. We have a CHF in the numerator and the denominator, and so we are left with the EUR/JPY. Take current price of the EUR/CHF and the CHF/JPY, multiply them together, and it will be the current price on the EUR/JPY.
We can also do this for a multiple of currencies, such as: GBP/AUD*AUD/CAD*CAD/NZD=GBP/NZD. Again multiply the current rates together and you will get the current rate on the GBP/NZD.

You might wonder what would this have to do with trading. If you are analyzing the markets, and you see that the EUR/CHF and the CHF/JPY are both going up, then that tells you for sure the EUR/JPY is going up. You might want to decide instead of having 2 positions up at the same time, to open a position on the one position. OTOH, you see that EUR/JPY is heading north, then you might want to spread your positions around a little and place one each on the others.

The mathematical relationships between all the currency pairs shows how all the pairs are interrelated.

There is also an indicator called complex commons. It measures the current strength or weakness of the 8 majors. It is something that can be used as a confluence with the regular methodological approach. If one currency is very strong another is very weak, that is a signal to look to that cross to be thinking of a trade.

 

[4xpipcounter]

Forex Mathematics--II

What alerted me to what was going on with the CHF/JPY was that I could see the directional bias with the GBP/JPY and GBP/CHF were directly disproportional. The GBP/JPY at the time was getting ready for a huge drop (Remember how many times I mentioned the drop under the weekly cloud?), and GBP/CHF was getting ready to go up.
GBP/JPY*CHF/GBP=CHF/JPY. We have the GBP/CHF, so which is the reciprocal of CHF/GBP; so, GBP/JPY / GBP/CHF=CHF/JPY. This means if the GBP/JPY is going down and the GBP/CHF is going up, then the CHF/JPY has to go down.

There are times when you can cross-check currencies in order to make a trading decision. As an example a few weeks ago I noticed the shorter term that both the EUR/GBP and GBP/JPY were ready to head north. Personally, I don't like trading the EUR/GBP that much, because it moves too slow, but seeing it and the GBP/JPY was going up, that meant the EUR/JPY had to go up, so I checked it. The TA's showed me my observation was correct, so I jumped in for a nice trade.

Hold on! All this is leading up to something.

 

[4xpipcounter]

Forex Mathematics--III

With regards to the euro and cable having any relationship with the aussie and kiwi, the math will always make that determination. We simply devise the formula: GBP/NZD*AUD/EUR*EUR/GBP=AUD/NZD. This means if (key word) the first 3 currency pairs are moving the same direction, then the AUD/NZD is really moving fast in that direction.
Here's another way to look at it; AUD/EUR, EUR/GBP, GBP/NZD. Let's say they are all going UP. This means the AUD is winning over the EUR, the EUR is winning over the GBP, and the GBP is winning over the NZD. That being the case the AUD, for sure is winning over the NZD. As a metaphor, look at it in terms of the school bully. A 17-year old can beat up a 12-year old. A 12-year old can beat up a 7-year old. A 7-year old can be up a 3-year old. For sure then, the 17 year old can beat up a 3 year old.

I'll give a more pictorial view to further show what we are talking about.

BTW, I know this is not information you will get at the corner drug store...., or anywhere else on the internet, for that matter. We do hear about a lot of theories. What I like about math is that all the theories get thrown out the window and enshrouds claims with nothing but facts.

Next: A picture paints a 1,000 words. Or, maybe it will be a few pictures paint a few thousand words.

 

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Forex perpetual price motion--I

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Here's the CHF/JPY starting things off. It is obvious the direction this price has moved. The sum of the next 3 posts are going to have the same price flow as seen here, and I am about to use the 6 other major currencies. BTW, up to this point, I haven't even looked at the charts I'm going to use, and I promise you I won't look at the charts until I decide which pairs I'm going to use.

 

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Forex perpetual price motion--II

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For the next 3 posts, just keep in mind what the chart of the CHF/JPY looked like:
Featured are the charts for the EUR/JPY and EUR/CHF. EUR/JPY*CHF/EUR=CHF/JPY.
Most platforms will have the EUR/CHF and not the CHF/EUR. Anytime that is the case, you divide rather than multiply.
That brings us to the charts. According to the formula, this means the sum of all the charts is going to have to equal an upward motion. The EUR/JPY looks sideways, and the EUR/CHF is straight south. Don't forget, it is the CHF/EUR inversed, so it has to be south.

Next will be the combination with the USD.

 

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Forex perpetual price motion--III

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Featured are the charts for the USD/JPY and USD/CHF. USD/JPY*CHF/USD=CHF/JPY.
Most platforms will have the USD/CHF and not the CHF/USD. Anytime that is the case, you divide rather than multiply.
That brings us to the charts. According to the formula, this means the sum of all the charts is going to have to equal an upward motion. The USD/JPY is choppy and to the south, and the USD/CHF is straight south. Don't forget, it is the CHF/USD inversed, so it has to be south. During this period, the USD/CHF dropped 5500 pips and the USD/JPY dropped 1600 pips, which offsets the USD/JPY and makes the total increase for the CHF/JPY

Next will be the combination with the GBP.