Quote:
Originally Posted by JohnG_FX
Hi
It's a bit complicated to try and explain in a limited space but I will try and give an overview.
The whole thing is based on time, and that within a particular time frame there will be a set number of high and low points that arrive at the same relative time within a particular period.
As with Elliott Wave there are cycles within cycles and they will allways follow a set of rules.
I only trade it down to the Intermediate Term Delta or ITD but it is possible to use smaller time frames.
The three cycles I use are :
1. ITD which repeats every 4 lunar months and has 12 points within it
2. MTD every lunar year also with 12 points
3. LTD every 4 years. I'm currently using an 18 point count on that one
I've been using it for about 4 years now and I couldn't/wouldn't trade without it.
Elliott Wave and Fibonacci (price and time) are integral to how the system works, the whole lot links together. EW and Fibs to identify price targets and the Delta counts to identify when those highs or lows are due.
Sometimes the counts are slightly unclear, not so much on the lower ITD time frame but the high/lows on the ITD must obey certain rules within the larger MTD time frame , and so on for the LTD. It's a bit like in EW where one wave is subdivided into 5 or 3 smaller waves with those sub waves also subdivided.
In this instance on cable the setup on all three time frames is good hence my confidence in the direction and minimum target.
Apologies if that doesn't really answer the question but it's quite an in depth system.
PS. an inversion is where there is an extra point at the end or beginning of a cycle, so on ITD only point 1 or 12 can be an inversion
|
I totally agree with John, once you experience the sence of direction that delta provides you want to trade with it. You can use other filters to go in the direction or against it. At least you would know that you go against it ( if so with very tight SL). Trading with delta helps me to focus on optimasing profits, and because I usually trade in the direction of the next delta point (why should I do otherwise) I can put longer SL. Today was a down day for the cable, and even so I was able to get reasonable pipps out of it. If tomorrow is an up day, there will be plenty apportunity to get in for short term and medium term trades. The up day in my approach is a day that goes above +20 pss zone calculated from the US close the previous day at 9.30pm London time. On this occassion there is rather a lot of time for the next ITD and MTD to be reached, and cable is in no rush to get there. There will be down days in such a scenario. The positive side is the ability to get in the long positions on the dips, untill the delta point is reached. Using the daily range provides as a guidline to take some profits before the dips happen.
Happy trading to all,
2be
