You asked me how I did it...ok,take a look at the attachment for EURGBP,you will see 3 triangles
First triangle starts on December 13th,you can see a high =0.8480 then a BP=0.8393 which gives an equilibrium image target at 0.8306...The target was slightly exceeded with a low on Dec 21st at 0.8302
Second Triangle...0.8302 to BP 0.8357 gives me a target of 0.8412..again,slightly exceeded on Dec 29th at 0.8420
Third triangle,still evolving..High at 0.8420..BP 0.8354 this projects a target low-as long as the distribution profile doesn´t change- at 0.8288...once it completes and reaches equilibrium,we can start a new triangle.
The following user says Thank You to Simba for this post:
thank you for your interest and question and i will try to answer it.
There are 5 ticks to each 正 character.
A triangle is created with a high/low/BP with another BP, The software will combine ticks with user-defined interval and the user can then find his required equilibrium.
The size of a triangle required is determined by the objectives of a user and his trading time frame. Longer trading time frame will mean a bigger eq.
Previously mentioned 0.8268 target for a low has been slightly exceeded,with an actual Low at 0.8263.
A new distribution has started from 0.8263,and this allows for a low risk long entry.
Entry@ 0.82682 Preliminary TP 0.8344 SL 0.8248...3:1 Reward to Risk ratio.
ecmf: I thank you ,and Mr Chen,for your kindness in sharing this method,it is really extraordinary.I have posted a few charts using MP,due to:1-Your comments regarding practical unavailability of J-Charts,at least till Mr Chen changes his mind and...2-Other members-including you- asked me if I could explain in more detail what I hinted in previous posts.
I do not want to hijack your thread,so,I will reduce my rate of posting here,even if I may have several questions regarding finetuning of trades,which I will post in a few days if you do not mind me doing so.
do feel free to ask questions regarding J-Chart and you can post your charts too. Glad to know that J-Chart makes a difference in your trading.
Hope this helps.
Update: Simba, please note that there are some fundamental differences between J-Chart and Market profile, trades using J-Chart are always with the trend (breaking of equilbrium), the theory of J-Chart is based on Chinese ancient philosophy and is consistent with chaos theory and not on statistics (standard deviation, normal distribution). It is the practical usage of chaos theory.
Last edited by ecmf; January 4th, 2012 at 11:38 PM.