Saturday, January 16, 2010
What you are looking at is a probability forecast system I have been working on. The week ahead has been forecast with a blue area. This is the predicted limits for next week. You can also see a darker blue area which forecasts Mondays limits. When the market opens the chart will continue to narrow the expected range. Price can be expected to gravitate first toward the reddish areas. Then the darker blueish areas will become the extended limits. Should the area enclosed by the red and green dashed lines be exceeded then a trend beyond the daily expectation is in force and this darker blueish area will become the expected limits.
I will continue to support trend analysis with MoneySpy, Woodies CCI and a few other indicators that have become essential to my trading. Andrews Pitchfork will of coarse be at the top of that list.
The system shown above is a trending tool so interpretation of the Andrews Pitchfork, Elliott Wave, and MoneySpy will continue to be useful in detecting reversals.
Below is a 20 day chart showing how this forecasting system has performed recently.
Here is the same chart without the Weekly limits. This leaves only the daily forecasts and makes the chart just a little easier to see.
Analysis presented on this Blog has only informational, and educational purpose, and does not represent a proposal for buying or selling currency contracts.
Posted by Robert Campbell at 18:42