Thread: Circular Trendlines

the way to predict the market utilizing curved lines and circles.
Introduction
The information that is posted here wasn't taken out of a text or book, it's purely my interpretation of a concept twisted into a curve that I have been experimenting with for the last 2 decades, and that is utilizing curved lines as points of resistance and support on a chart along with the behavior of price around these amounts.

The Concept
there are lots of techniques of technical analysis, which have their plus and minuses, however the ultimate decider of the market is price, and price will do anything it needs to do, dismiss of what a mathematical interpretation of it. Market moves due to excitement and fear of traders. These feelings produce various levels of price, and form curves and lines which may be used to test future moves

This way is based upon the above concept.

Any movement that the market does, will always fall on a point, and also the point that it lands on will be on a course where there has been other things in the past along that route.

So if we can locate the route, we can find the point, and when we can find the point we can deduce the path. When the path / points are located, then the pace of price through this space and also the time a movment spends within a certain course has to be mentioned to help in proper conclusion of management and chances for a protected commerce.

Putting the path, the speed of the movement together is what this procedure focuses on.

Some Basic Principals
Recognizing resistance and service is the most important fact in attempting to deduce what the market is doing and where its heading.

There are 3 distinct kinds of support and resistance, but most people are only familiar with 1 or 2. The 3 types are:

1. Support or resistance that lines on a flat straight line
2. Support or Resistance that outlines to a slanted line that is straight , many literature refer to the as a trendline.
3. Support or Resistance that traces to a line that is cruved. Again this can be a trendline, but its curved in space and is the subject of the thread.

There are just a few rules to follow when assessing price along a trendline, whether it be flat, slanted or curved.

1. Price moves from trendline into trendline
2. If price shows stickiness then it will break that 90% of the time.
3. After a trendline breaks price moves into another trendline that is important.
4. Price never stays in between 2 trendlines.

Basic Tools
All charting applications have a fibonacci tool that draw fibonacci arcs, few of these possess a circle drawing tool, but you have to have the ability to draw just the perimeter of a circle, a good circle produces a little confusion. I am going to use a example of how I modified the arc tool to utilize it in order to draw circles. The chart I use are available here:

http://www.netdania.com/Products/liv...rtStation.aspx

Assess this article to acquire much better explanation on the best way to configure NetDania.com to draw circles:
https://www.forexforum.co.za/trading...id-trades.html

The drawing below shows how to modify the tool to make a circle.

Also note that you have to see a lot of things on your own time period. Having a CandleStick chart where you find every wick of the candle wont help. You have to condense the chart to have the ability to work far better.

In NetDania.com charts this is done via the menu item View gt;gt; Periods, and set this to 1000.

Drawing Circles On MetaTrader 4
In metatrader you cannot draw the circles with as much simplicity that you can in NetDania's Chart station. You have to modify the Fibonacci Circle Tool in MT4 or the Ellipse Tool to draw the circles. A diagram is shown below on the way to alter the circle tool. Please scroll down to locate it.

The main problem in Metatrader 4 is that if you switch time frames your ring changes shape and becomes elliptical, therefore it is going to work on just one time period and will not work on others.

Fixing Window Size
You want to make sure that for all practical purposes the width and height of the window at which you're drawing the circles is equal, otherwise you could get slightly off price amounts for your calculation when drawing the circles. If the resoloution of your own desktop is 1024x768, then your charts will be somewhat wider, and you want to make the window size at which price action is occuring a square size, so you get appropriate facet relationship for the diameter and circumference of the circle you're drawing.

Areas Of Circle
Strong Factors
There are just two strong points on a ring which is tough for price to split THROUGH or split OUT from, these are the 2 poles, north and south as shown in the diagram.

Activity Points
Price is active the majority of the time in one of the four quadrant of the circle as shown. These quadrant are NW, NE, SW, and SE. It can be active inside or outside of the perimeter within one of those zones over. Price can be active within a circle (Interior Circle) or active within the perimeter of a circle (Outside Circle)

Strength
A ring has 2 types of power

1. Outside Power

The strength of the type is measured by how many points are on that ring, if these points lie on the inside of the ring, it makes the inside stronger, should they line up on the exterior, then it creates the exterior stronger. It wouldn't be allowed to go back to its prior condition if such a circle that was challenging breaks. For example if movement adhers to the exterior of a circle and then penetrates it and then moves into the inside it would be difficult to get back to the exterior shortly. Price must devote a significant quantity of time within precisely the exact same circle to go lower or higher (depending on tendency ), so that it may get another point on precisely the exact same circle to switch instructions.

2. Inside Power

This isn't that clear at the beginning, but the center of the circle as well as the whole circle for a entity in itself may be a very strong place on the chart at which movement will find strong reactions. Price Action can find great confrontation once it approaches the center of a circle. If you're conversant with Elliot Wave, these kind of confrontations ususally cause a reversal to occur towards the center of the circle and therefore are called Corrective Moves in Elliot Wave terminology. Then there is the instance where Price Action will speed up tremendously as it approaches the center of the circle and this takes place in the type of moves that are labelled as Moves in Elliot Wave .

Then we come to the whole circle itself which can be treated as a entity within a certain section of a chart, where the energy of the entity is so strong that'll repel and bounce motions it off with substantial strength. Out of my personal experiences, these circles are smaller but with more powerfull repelent activity. It also looks like they exude a sort of energy or for a lack of a better word, an aura, of these that affects the shape of the movement that passes by them. After a while of circle drawing you'll observe such locations and they help a lot in fine tunning your analysis, however they are definitely the most difficult of zones to seek out and as time passes they will show themselves increasingly.

Direction
Price always tries to go in the inside of the perimeter of a circle to its exterior and from outside to indoors. If it cant do that on a solid circle it will get the path of least resistance to try the identical thing on another circle, till it reaches a ring where it cant play the identical game anymore, and it will respond in the opposite way. The circles with more strength will induce price to bounce off them and go to circles with strength until a circle with equal or more strength is reached at which a response happens. Knowing circle's strength is a thing to take into account when attempting to locate direction. Which ring is the more powerful, which is the weaker one, and where is another more powerful circle.

Zones
When many circles intersect in precisely the exact same place, it creates that region very important

Empty Space
When there is a empty space between 2 circles, with no additional major circles in between, then price will rush through such zones.

Center Of A Circle
When a movement starts in the perimeter of a circle and moves inwards towards the center of that circle, 2 things will happen:

1. It will either locate a difficult resistance to penetrate through the center, this takes place in the event of corrective motions, or

2. As it approaches the center, it will accelerate in acceleration, and it will land on the other side of the perimeter.

Strategy Of Analysis
1. Use your circle tool to draw a circle

2. Move the ring around your chart trying to align as many things as you can on it. Play around with the diameter to acquire a curve.

3. Draw several circles on various areas of the chart.

4. Determine which ones are the ones that are more powerful and which ones are the weaker ones. Pay attention to how price bounces off them, and how price moves towards the center of the ring

5. Notice any space in between.

6. As the price moves, draw circles round the movement look closely at the way the angle of the decent/ascend moves alongside the bubbles. When the bubles are sped up by things around a course tend to change angles Along with the first bubbles that you draw supply support. And as movement would like to switch.

7. If you can find 2 factors draw a ring and determine if price moves developing a third stage. When it does then a rally might happen making the perimeter of the circle a great place to buy/sell.

8. Pay attention to how many circles sqeeze price and other ones create a area of expansion. A squeeze of price is the momentum that it needs to accelerate when it finds an area of expansion.

9. Do the aforementioned on all time frames.

10. Time frame circles are more important than lower time period.

11. Use the lower time period circles to find a good entry once you've got a story.

12. When a response happens, see if the response is still finding support/resistance on the prior bubbles or not. How is it breaking them?

Take Profit
A bounce from once circle can land on numerous different circles. The first one needs to be used as take profit. Based upon the time frame you're trading, this initial circle would be 10 pips off on M1 or 100 pips off on M15

Stoploss
Usually you want more than one circle to find stoploss. If movement is going at a Inside Circle pattern, you then have to have a Circle along a chain of points together with the inside circle to find stoploss. The stoploss would fall within the outside of the Circle. You have to experiment with this to find the stoploss. You dont want to get caught in the trap of a single circle breaking's perimeter, then landing on a circle that is different and moving in precisely the same direction as the move.

Word Of Caution
Working together with circles isn't easy and takes time to get a sense of what the groups are telling you. There's high probability that you will receive signals if you use more than one, if you use indiors together with circles. Anything a ring tells you is relative to the time frame that you're trading. Circles only give you a potential limit of a movement and leadership, but as the move starts a lot of additional thing can occur, so believing again that the move has to reach your target isn't a wise idea, because it can choose not to go how you think and choose a different path but still manage to reach what you believed. Then only use a single, like the RSI, if you have to use a indior. The indior that you can utilize is that a pair of good eyes.

Additional Posts To Check
On Configuring NetDania:
https://www.forexforum.co.za/general...ty-knocks.html
On Drawing Circles:
https://www.forexforum.co.za/trading...le-system.html
On Steps To Take To Draw Circles (A Quick Guide):
https://www.forexforum.co.za/trading...agic-wave.html
Examples Of Circle Drawing Methods Explained:
https://www.forexforum.co.za/trading...lory-days.html
https://www.forexforum.co.za/general...as-system.html
On How To Tell Direction Using:
https://www.forexforum.co.za/general...rts-ascii.html
On Powerfull Smaller Circles (Energy Circles) Where Price Is Defended Very Strongly:
https://www.forexforum.co.za/trading...newbi-log.html
https://www.forexforum.co.za/general...ent-banks.html
https://www.forexforum.co.za/general...appointed.html
https://www.forexforum.co.za/trading...s-15-mins.html
https://www.forexforum.co.za/general...ty-knocks.html
On Drawing Circles On Indiors Such As RSI:
https://www.forexforum.co.za/general...appointed.html
On Using Circles To Gage Relative Strength of A Point On A Straight Trendline:
https://www.forexforum.co.za/trading...le-system.html
An Example Of Multiple Circles On A Chart Pointing To The Same General Theme:
https://www.forexforum.co.za/general...ex-trader.html
On What To Search For When Choosing A Ranking (Have to read few more posts after each link)
https://www.forexforum.co.za/trading...le-system.html
https://www.forexforum.co.za/trading...s-reality.html
On What To Do To Avoid Bad Trades And Eventually Turn Them Into Good Trades:
https://www.forexforum.co.za/general...ex-trader.html
On Circle Drawing Techniques:
https://www.forexforum.co.za/trading...agic-wave.html
https://www.forexforum.co.za/general...61-swissy.html
https://www.forexforum.co.za/general...ex-trader.html
https://www.forexforum.co.za/general...61-swissy.html
https://www.forexforum.co.za/trading...s-selling.html
New Rule: https://www.forexforum.co.za/trading...nal-245-a.html
https://www.forexforum.co.za/general...-big-deal.html
On Other Trendline Techniques:
https://www.forexforum.co.za/trading...agic-wave.html
On How To Obtain The Junction Of Time And Price:
https://www.forexforum.co.za/general...ent-banks.html
https://www.forexforum.co.za/trading...newbi-log.html
https://www.forexforum.co.za/trading...mendation.html
On Median Line Analysis And Acceleration Of Price:
https://www.forexforum.co.za/trading...s-reality.html

Best of Luck
Happy Trading

Excellent work bro
Sure I'm interested to read more. . Valuable article and info
Circle s constantly have a lot of secrets Like Universe Sun, Moon, Plants
for E/U I'm level no open position.
I believe we will c 1.4820 again last fight was there.
One of my motive to short E/U on May On my chart for us DX
Not convincing with this up movement but time will tell


Current US DX

Very interesting and extremely useful advice. I think I sick must donload the netdania charts as MT4 probably wont work.
Thank you very much, .

I'll keep studying and looking this circle system that is interesting.

Cool concept.

You talking about linking several points such as from the attahed pic?

I guess that this methodology is only going to improve over time, so I will attempt to contribute by asking questions!

The other day, I noticed how NFP release severely deconstruct a few of the circles.

Several other days, other kinds of news release justcan't seem to affect the theorem of those circles.

So what's the deal?

1) the circles act as main authorities, with news telling you which circle PA should be advised to,

or

two ) It can invalidate these circles completely sometimes?

thanks!

I will pay for the drawing of those circles in a different article. One thing that I forgot to say, is that attempt to condense your candle stick into points that are tighter, although I didnt have the time to put everything. You should correct your chart to see things. I use NetDania.com and if they have a feeling called Stage. I set it at 1000. Its important because you need to see lots of points.

I havent fully drawn all the circles, but attempt several circles on the exterior of this pattern.

Originally Posted by ;

Cool Idea.

You speaking about linking several points such as in the attahed pic?

Originally Posted by ;

I will cover the drawing of the circles in a different report. I didnt have the time to put everything, but one thing that I forgot to mention, is that attempt to condense your candle rod into tighter points. You should correct your chart to view things. I use NetDania.com and in there that they have a setting called Period. I place it at 1000. Its important because you want to find lots of points.

I havent completely drawn all of the circles, but attempt couple circles on the exterior of this pattern.

Maybe like this?

In answering your question, I have to state you could combine this method with other procedures of analysis but for now try to imagine you dont know anything about the news at all and all you have shown is the movement of price to a chart, and dependent on the trendlines which you draw and watch the response of price around it, you have to generate a decision.

This forces you to pay attention to the tiny little details of price movement and find out how they bounce lines off so you start to come up with something called Price Intuition, where you will observe certain manners price is behaving when it reaches a degree, and in combination with curves and lines you will be able as time moves make better decision.

However, for now the best way to find out would be to forget about the news and only use the M1 or M5 chart to draw circles

In answering your first question, it's not totally black and white which when news is 1 way or the other it will visit a certain circle. It is more the path which price has to travel within the channels and figuring the path thats important.

Yesas price moves exactly what you brought an hour ago might become invalidated, and that means you have to keep drawing and modifying your circles. As time moves you become faster at viewing the circles and you also remember certain market setups previously, and it will help a lot in you attempting to decipher the current move.

The most important focus must always be at the way the price is reacting towards these lines and how much time its spending in a specific spot.

Sometimes you cant tell anythig in any way, and you only have to wait it out.

I could post more as time goes on. Hopefully it might help you out

Originally Posted by ;

I figure this methodology is only going to improve over time, so I will attempt to contribute by asking questions!

The other day, I saw just how NFP release severely deconstruct some of the circles.

Other days, other kinds of news release justcan't appear to impact the theorem of these circles.

So what's the deal?

1) the circles act as primary enforcement, with news telling you that circle PA ought to be advised to,

or

two ) It may invalidate these circles entirely sometimes?

thanks!

You need to see a lot of points on 1 time frame. I've attached a sample Metatrader also a diagram showing the properties of the tool to this article, and template.

In answer to your question,

its a yes,

Condense your chart, and attempt using the outside perimeter of the circle to see how many points you can discover that lie on it,

As the market moves attempt to draw more circles such as the ones that I've shown to obtain an idea of a probable path that the motion is trying to maneuver.

Together with the chart that you have there was not enough points so I could draw a circle in which the interion of the circle is used as trendline.

But you're on the ideal track.


Then

Originally Posted by ;

Maybe like this?

https://www.forexforum.co.za/attachm...1750366161.tpl