Hi everyone,
Here I am using a real time example on how to trade Delta point. The idea and rule was posted yesterday with title "How to trade Delta point".
Today (Asia time) GBP is making a new high at 1.58184. From my Delta chart, we are already close to ITD 11 high. ITD 11 high could also be MTD 1 high and LTD 15 high, therefore this is a significant long term top. However, if you are familiar with Delta, you would also know that we are in inversion time zone for ITD. What this means is that ITD 11 could invert, and MTD 1 and LTD 15 could be due at ITD 1 high instead. If you are not familiar with Delta, then just ignore what I said here. Basically all I am saying is that we are near a signficant long term top.
As I have said in my previous post, trying to pick an absolute top is a little difficult for two reasons:
1. Delta turning date is approximate and not exact. If we enter short too early, the upward move may not yet finished.
2. It's a little difficult to set up an objective stop loss.
But we do know that we are nearing a Delta turning date. So now I have started to do the exercise posted yesterday. Since today GBP is making a new high, today would be the "signal day" or otherwise also called "current high day". As you can see in my chart, the low of the signal day is at 1.5641. Therefore if in the future we have a daily candle close below 1.5641, that would be the first signal that ITD 11 high probably has already arrived.
If tomorrow GBP is making a new high (let's say 1.59) then tomorrow would be the new signal day. We keep updating the signal day everytime GBP makes a new high, and we measure the low of the signal day, and if in the coming days we get a daily close below this low of the signal day, that would be the first signal to us that ITD 11 may have already arrived.
Hope this real time example makes the rule and idea more clear.
P.S. I am not very sure how many people actually read my blog. If people get some benefit out of this blog, I would be glad to keep writing my thought and chart. Whether you are just a guest or someone who register and follow my blog, please feel free to write comments or anything so that I know that someone actually reads my blog :D
10 comments:
Great analysis. I don't trade it but your approach is so well presented that its very interesting to follow.
Very interesting trading system. I have been following your posts for the last 2 weeks and find your analysis quite impressive. Thanks and keep it up. I will be following your blog conscientiously.
Hi cmellon. This is a very very nice blog. Thanks for your generousity to share and teach us the Delta thing (even though I don't think I understand it but it give me more undestanding about it). Thanks alot and keep posting.
Hi cmellon, I just started reading your blog and find it very interesting. I don't know much about Delta trading, but you are so thorough in your analysis that I'm hooked.
Do you know where I can learn more about Delta trading?
Hey C,
Your blog is an invaluable source of information. I have tried to write comments in the past, but was unable to for some reason. Keep up the good work, and maybe after this summer I can speak some delta as well.
p.s. On my platform, the May 20th daily low was 1.5448. Are your daily closes GMT?
Jay
I read the book Delta Phenomenon before. At this moment, i am unable to afford paying for the program u r using
I am fortunate to chance upon ur website.
Great analysis> Keep up the good work.
Do you also trade other currency as well
Thanks everyone for the comments :D
I would briefly answer some of the questions:
1. Jay: my daily candle close is GMT, you are correct. You could use your platform candle close. The idea is the same.
2. Tien Lok: I currently do Delta analysis for GBP USD only
3. For information about where to learn Delta, I'll write another post with the information later.
Hi Cmellon, I appreciate your analysis very much and I use it to corroborate my other analysis. I don't know much about delta trading system but your analysis always makes sense to me.
Regards
4cfx
I just bought the Delta Book last week and am a new learner of this technique. I really appreciate your analysis. Please continue updating. :)
Fantastic as always and we really enjoy your analysis. Please keep updating!
Post a Comment