Drawing target zone 1 and counting number of bars

[rtr1129]

Hello!

Here is an example of GBPUSD that looks like a good example to discuss. I have some questions. Do we start from the beginning of wave 1, or from the beginning of the previous impulse wave (3 in this case) when calculating TZ1 and counting bars?

For example:

1. Do we draw the fib extension from the start of wave 1 (as drawn in the picture)? Or does the fib extension begin from the start of the previous impulse wave (start of wave 3 in this case)?
2. When we count the number of bars (100-140, and 40-96) do we begin the count from start of 1 to the end of 4 (for the 100-140) or from the start of the previous impulse wave (start of 3)?

[rtr1129]

Here is another example to illustrate a difference, why I am sometimes unsure. This is the XBI ETF. Here we do not see a clear 1-2, we just see there is an impulse wave and possibly a wave 4, so the rule "begin from the start of the previous impulse wave" works quite a lot of the time, and it is a useful rule because we do not really care about counting waves. We only care that there is an impulse wave. But in some cases like GBPUSD above it needs clarification, because there are two different trades depending where you begin

[immy]

hi

just found this unread post... don't know how I missed it... apologies for that... i'd like to know who you are... are you member of the slack group?
Is this box aims box or you've coded something into tradingview? i like it...

one thing i'll point out... don't worry about 1-2... we deal in 3-4 and 5... a wave is not a 1-2 unless a 3 is proven... its easy to find 3's... specially when a 4 is visible.... this would have been a spot for a setup 1...

hope this helps and you continue ...


ps: you have to start a topic in the journal section...

[rtr1129]

Hello! Yes this is on Tradingview. I found that it’s a useful tool because it lets you set odd timeframes, so we can look at 37-minute charts, or 130-minute charts, or whatever timeframe is needed to get the right number of bars. I found that getting the right number of bars makes all of the other indicators tell the right story.

Even the most basic indicators, if you look at them randomly, sometimes they mean something and sometimes not, but when you look at them with an objectively defined and consistent timeframe (by number of bars), they become very powerful.

Yes, I should start a journal. My most significant challenge is consistently spending the time to find the setups, with a busy day job and family to care for. Maybe I should set a small goal each day. I believe I have a good understanding of the setup 1, but just need to do the work to look at many charts and find them.

[immy]

Good post rtr1129 agreed with what you said. but I think too much time frame manipulation could lead to a bit of a trouble. so I keep myself to max of two jumps from time frame X to 5X higher or 5x lower. soemtimes a 3X higher lower cna be checked too. but generally sticking to a time frame is the way forward that works for me. cheers