Replies to post #133584 on Simple's Green Room

[pennies2007]

AU 15 Minute TDI Pattern Example

Here's an example of what we can expect on pairs like NU and UJ on the 4 hour charts, Heavy.

The key to this is knowing when to start watching the pattern on the TDI. During a downtrend, for example, you start watching after the pair makes a low and then starts moving back into a consolidation pattern to bleed off some of the oversold conditions. The pattern almost always gives some type of triangle formation. Then, wait until you can count 5 waves inside the pattern. In this case, the 5th wave fell just a bit short.

The signal comes when the TDI finally breaks out of the pattern. Here, the overall trend was down so when the TDI broke the triangle to the downside, it came back up briefly in a small counter-trend bounce to retest the bottom of the broken trendline. Once it curled down, the party was ready to start.

This same pattern setup plays out over and over again on pretty much any pair out there. Just find a trend, wait for a consolidation channel to set up, then catch the TDI breakout and retest, and hop right in.

This particular pattern was only a 15 minute chart and it produced 35 to 40 pips profit pretty quickly. Now multiply that factor on a 4 hour chart and you get an idea of the scope of the next sell off on NU and the rise on UJ. That results in a 400 to 500 pip move coming in the direction of the breakdown.