This is an analysis of the 1D Pound/USD chart from the low on Wed. Oct. 4th to the current high. This analysis uses Magenta counting and the SandTiger indicator script to track the counts.
I've placed descriptive notes throughout the chart, so these should be very helpful as well...
For a short overview of how to use Magenta and SandTiger please see my 4H analysis ('Exhibit A')...
We track 3 count processes in this sequence:
Let's start analyzing the counts in the order they appear above. A 'cycle' in Magenta is defined as a 12-count process. The cycle here iterates twice to land on point 24 within the fourth FCT. Our 'type' is mid-marked by a DMC in push1 - so our type value is 4. If we append our 4 type to EOC, it ends at point 28. This type is also confirmed by adding 4 to the first iteration which lands on the lower terminal of the second FCT... terminal hits can be markers...
On to the 'components' count (teal callouts)... Our components list is 8, 4, 2 and we can know this list as early as we know our prime value - by point 9 we would know it. Here we get two iterations of this value set, in this order: 4, 8, 2... 8, 4, 2. I've learned - literally just now - that a sequence can repeat this component set 'as a whole set,' but not as individual values or pieces of the set.
Finally, we have the special values count. Since 'total / 2' is odd, we toss it. What we usually look for is for the lowest value to count evenly into one of the higher values... if not 'total' or 'total * 2,' then one of the derivatives... In this sequence 14 counts evenly into 28.
Conclusions: It seems very likely that price will not breach the 1.28280 level anytime soon and that we will see it trend down to, probably below 1.25000. I will be shorting via the 4H chart and expect it not to breach 1.27858 there either. I want to get in as soon as the spread contracts Sunday night and price starts showing some downward inclination.
I've placed descriptive notes throughout the chart, so these should be very helpful as well...
For a short overview of how to use Magenta and SandTiger please see my 4H analysis ('Exhibit A')...
We track 3 count processes in this sequence:
- A cycle count with a type/anti-type (blue/red callouts, black 'EOC' callout),
- A components count (teal callouts), and
- A special values count (yellow/red callout).
Let's start analyzing the counts in the order they appear above. A 'cycle' in Magenta is defined as a 12-count process. The cycle here iterates twice to land on point 24 within the fourth FCT. Our 'type' is mid-marked by a DMC in push1 - so our type value is 4. If we append our 4 type to EOC, it ends at point 28. This type is also confirmed by adding 4 to the first iteration which lands on the lower terminal of the second FCT... terminal hits can be markers...
On to the 'components' count (teal callouts)... Our components list is 8, 4, 2 and we can know this list as early as we know our prime value - by point 9 we would know it. Here we get two iterations of this value set, in this order: 4, 8, 2... 8, 4, 2. I've learned - literally just now - that a sequence can repeat this component set 'as a whole set,' but not as individual values or pieces of the set.
Finally, we have the special values count. Since 'total / 2' is odd, we toss it. What we usually look for is for the lowest value to count evenly into one of the higher values... if not 'total' or 'total * 2,' then one of the derivatives... In this sequence 14 counts evenly into 28.
Conclusions: It seems very likely that price will not breach the 1.28280 level anytime soon and that we will see it trend down to, probably below 1.25000. I will be shorting via the 4H chart and expect it not to breach 1.27858 there either. I want to get in as soon as the spread contracts Sunday night and price starts showing some downward inclination.