How To Use? A Quick Start


18 Aug
18Aug


In this pose we are going to cover a few examples of Commodity, FOREX, Stocks, Index, with straight and flipping projection lines, cases when to buy even when the short-period projection lines indicate downtrend and when to  sell even when the short-period projection lines indicate uptrend.


Commodity - COFFEE

In the first example from July 2016:

Annual line (dark blue) shows a strong uptrend.

The monthly (green), weekly (pink) and combined (yellow) lines fit better when flipped. This can be immediately noticed after a month on the red circle.

Red circle - sell is an option but not encouraged since the uptrend is strong.

Green circle - sell is an option but not encouraged since the uptrend is strong.

Blue circle - sell is a strong option, since the monthly (green) line changes direction strongly  to downwards 

Brown circle - buy is encouraged and the annual line still points upwards



In the second example from Nov 2016:

Annual line (dark blue) shows the continuation of a strong uptrend but starting to bend for sidways.

The monthly (green), weekly (pink) and combined (yellow) lines still it better when flipped and continue the direction from July. 

Blue circle - sell is now changed from strong option to validated, since the monthly (green) line changes direction strongly  to downwards and the price dropped sharply.

Brown circle - buy is now confirmed to be encouraged and the annual line still points upwards tending to sideways




FOREX - USDMXN


In the first example from Jan 2019:

Annual line (dark blue) shows a sideway move.

The monthly (green), weekly (pink) and combined (yellow) lines may fit either straight or flipped in current situation.

Red circle - sell is an option.

Blue circle - buy is an option since all lines change direction to up.

Brown circle - sell is recommended as the annual line is flat and the monthly (green), weekly (pink) and combined (yellow) lines change direction to down.


In the second example from Jan 2020. a year later:

Annual line (dark blue)  still shows a sideway move with tendency to go slightly down.

The monthly (green), weekly (pink) and combined (yellow) lines may fit better in straight.

Blue circle - buy is a strong option to look for now, since all lines change direction to up.

Brown circle - sell is recommended to look for as the annual line is flat and the monthly (green), weekly (pink) and combined (yellow) lines change direction to down.

Green circle - a change in direction is anticipated

In the third example from June 2020., half a year later:

Annual line (dark blue) now points to a strong uptrend

The monthly (green), weekly (pink) and combined (yellow) lines may fit better in straight.

Brown circle - sell is recommended - confirmed

Green circle - a change in direction is anticipated, now more strongly with the monthly (green), weekly (pink) and combined (yellow) lines change direction to up.


INDEX - GSPC

In the first example from Jan 2020:

Annual line (dark blue) shows a strong upward.

The monthly (green), weekly (pink) and combined (yellow) lines may fit  straight.

Red circle - sell is an option. Although the annual line points up, the monthly (green), weekly (pink) and combined (yellow) lines show a strong downtrend.

Green circle - potential buy is all lines change direction to up.

Brown circle - sell is not recommended as the annual line is up.

Orange circle - potential buy as the annual line is up.

Black circle - point of decision - the combined line still shows up.


In the second example from Apr 2020:

Annual line (dark blue) shows a change of direction - in this case we will check the flip option.

The monthly (green), weekly (pink) and combined (yellow) lines may fit  straight.

Red circle - sell is an option confirmed

Green circle - potential buy is all lines change direction to up.

Brown circle - sell is not recommended as the annual line is up.

Orange circle - potential buy as the annual line is up.

Black circle - point of decision - the combined line still shows up.

In the third example from Apr 2020:

Annual line (dark blue) is in flip direction, and a continuation from the Jan line - may fit better, time to confirm.



STOCKS - AMZN

Here is a more complex example. 

We are at the start of 2020 and would like to know where this stock is heading to. 

We will analyze the annual (dark blue) and the monthly (green) cycles in straight and flip positions, compare the options to start of 2019 and then check the results with Aug 2020.


In the first example from Jan 2020:

Both annual and monthly cycles are in straight position.

Annual cycle - the downward/sideways price direction from the Blue circle to the Brown circle confirms this position. The annual cycle indicates that a strong uptrend is anticipated.

Monthly - with this price structure  it is yet unclear if the straight position is preferred over the flip position. The Red circle area will provide confirmation.

In the second example from Jan 2020:

Annual  cycle is straight, and monthly cycle in flip position.

Annual cycle - the downward direction from the Blue circle to the Brown circle confirms this position. The annual cycle indicates that a strong uptrend is anticipated.

Monthly - with this price structure  it is yet unclear if the straight position is preferred over the flip position.The Red circle area will provide confirmation.


In the third example from Aug 2020:

Both annual and monthly cycles are in straight position.

Annual cycle - the straight and uptrend direction is confirmed. The uptrend direction continues.

Monthly - the straight direction is confirmed. The Green circle indicates a potential correction and reversal.

Conclusions

  • In an uptrend  where annual/quarterly/monthly (dark blue/blue/green  lines point up),  any low in the weekly (yellow/pink) line is an opportunity for buy.
  • In a downtrend  annual/quarterly/monthly (dark blue/blue/green lines point down), any high in the weekly (yellow/pink) line is an opportunity for sell.
  • When annual trend change direction (up to down or down to up) or goes sideways, use the weekly (yellow/pink ) lines as guidelines for buy/sell signals.
  • When a correction is anticipated, for example when the annual cycle points up but the monthly cycle points down, the exact timing of the start (local high) of this move may be too early but the target timing (local low) should be more accurate.
  • Note-1: the monthly, weekly and combined lines always go hand in hand in the same direction.
  • Note-2: the monthly, weekly and combined lines may flip regardless of the annual line
  • Note-3: the annual line may flip regardless of the monthly, weekly and combined lines
  • Note-4: the lines do not tend to flip suddenly or widely, they may flip in rare occasions and then hold in the new position for many months.
  • The new projection lines are always a continuation of previous projection lines created a few months before, that enables us to occasionally identify trends, change-in-trends and potential flips much earlier than they happen.







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