FluxLines on EUR/USD
Posted: Mon May 16, 2016 11:11 pm
I originally showed this work as a reply in another post but thought it was interesting enough to give it a thread of its own. So today we will be discussing the Planetary Flux Line tool found in W59.
No doubt anyone who has ever used W59 has tried using this simple to use indicator. However while it may be simple to employ the way in which it is used can vary from mundane to quite complex. The purpose here today will not be to go into any of those complexities but show you how I made these charts so you can have a template of sorts from which you can experiment with if you so choose.
The starting point with this indicator is to determine the planet or planets which are the source of main influence on the market under observation. This is an entire subject unto itself and goes well beyond the scope of this discussion. So I will make things easy for you and tell you it is Venus. That is not to say there are no other energy sources that are exerting influence on the EUR/USD, there are. However for this approach I believe you will be well served if you concentrate on Venus. Ultimately of course the decision lies with the user. In the first chart below, which is an update to the original one I posted (it can be found here: viewtopic.php?f=8&t=92 ) we can readily see how the Flux lines did a pretty good job of containing price and acting as support and resistance lines. You will also notice that the black dotted vertical lines give us fairly solid change in trend signals. If you study those lines closely you will see they occur when we get crosses of the lines. So what exactly is going on here? All we are doing is enabling the indicator to plot its inverse and when we get that cross we get potential CIT setups. Why? Well, as simply as I can put it the positive and negative charges set up disturbances within the energy field that can change the trend of the market by essentially neutralizing the dominant energy that is driving the move. When the CIT does not act as a neutralizing agent it should be considered a clue as the strength of the move. As I preached many times before it’s not always what the market does but sometimes what it doesn’t do that offers input in our analysis. Now another thing that I haven’t touched onhere is the harmonic settings. In many respects this is even more difficult to determine then the planet(s) of main influence and is once again beyond the scope of this post. I can tell you that for this particular indicator I use GS numbers (Gerbino Sequence) exclusively. Beyond that however I won’t specify. Now this chart works perfectly well at what it does but suppose we want to get a somewhat bigger picture. Let’s now turn our attention to the second chart. Here we use the exact same principles already discussed and have only changed the harmonics to achieve our purpose. The two charts are in fact harmonically related. We are still getting reasonably good support and resistance on the lines as well as CIT signals on the crosses. The CIT signal on 11/24/14 at first glance may look like a dud but remember what I said about market failing to do what is expected. We did not get the turn on the signal and instead got a continued steep decline. In other words the energy behind the prevailing market move simply overwhelmed the CIT signal. We can also and an additional wrinkle here by measuring off our Flux cross CIT signals using our Bar Counter tool set to planetary degrees. Obviously we want this set to Venus and we key in on 4th and 6th harmonics and you can measure both forward and backward in time off of the CIT signals. Generally speaking each CIT anchor will resonate to either the 4th or the 6th harmonic. On some occasions it will resonate to both … at this point I know not why. In this example the black vertical lines represent 6th harmonics, red the 4th harmonic, and the fuchsia vertical line represents where both worked. In the chart we see how we can use a simple trendline break as an entry signal.
So there you have it. The rest of the charts show the settings used here if you want to do some experimenting on you own.
Best,
Joe
No doubt anyone who has ever used W59 has tried using this simple to use indicator. However while it may be simple to employ the way in which it is used can vary from mundane to quite complex. The purpose here today will not be to go into any of those complexities but show you how I made these charts so you can have a template of sorts from which you can experiment with if you so choose.
The starting point with this indicator is to determine the planet or planets which are the source of main influence on the market under observation. This is an entire subject unto itself and goes well beyond the scope of this discussion. So I will make things easy for you and tell you it is Venus. That is not to say there are no other energy sources that are exerting influence on the EUR/USD, there are. However for this approach I believe you will be well served if you concentrate on Venus. Ultimately of course the decision lies with the user. In the first chart below, which is an update to the original one I posted (it can be found here: viewtopic.php?f=8&t=92 ) we can readily see how the Flux lines did a pretty good job of containing price and acting as support and resistance lines. You will also notice that the black dotted vertical lines give us fairly solid change in trend signals. If you study those lines closely you will see they occur when we get crosses of the lines. So what exactly is going on here? All we are doing is enabling the indicator to plot its inverse and when we get that cross we get potential CIT setups. Why? Well, as simply as I can put it the positive and negative charges set up disturbances within the energy field that can change the trend of the market by essentially neutralizing the dominant energy that is driving the move. When the CIT does not act as a neutralizing agent it should be considered a clue as the strength of the move. As I preached many times before it’s not always what the market does but sometimes what it doesn’t do that offers input in our analysis. Now another thing that I haven’t touched onhere is the harmonic settings. In many respects this is even more difficult to determine then the planet(s) of main influence and is once again beyond the scope of this post. I can tell you that for this particular indicator I use GS numbers (Gerbino Sequence) exclusively. Beyond that however I won’t specify. Now this chart works perfectly well at what it does but suppose we want to get a somewhat bigger picture. Let’s now turn our attention to the second chart. Here we use the exact same principles already discussed and have only changed the harmonics to achieve our purpose. The two charts are in fact harmonically related. We are still getting reasonably good support and resistance on the lines as well as CIT signals on the crosses. The CIT signal on 11/24/14 at first glance may look like a dud but remember what I said about market failing to do what is expected. We did not get the turn on the signal and instead got a continued steep decline. In other words the energy behind the prevailing market move simply overwhelmed the CIT signal. We can also and an additional wrinkle here by measuring off our Flux cross CIT signals using our Bar Counter tool set to planetary degrees. Obviously we want this set to Venus and we key in on 4th and 6th harmonics and you can measure both forward and backward in time off of the CIT signals. Generally speaking each CIT anchor will resonate to either the 4th or the 6th harmonic. On some occasions it will resonate to both … at this point I know not why. In this example the black vertical lines represent 6th harmonics, red the 4th harmonic, and the fuchsia vertical line represents where both worked. In the chart we see how we can use a simple trendline break as an entry signal.
So there you have it. The rest of the charts show the settings used here if you want to do some experimenting on you own.
Best,
Joe