Key to timeframes on the charts

5 minute 15 minute 30 minute 1 hour

4 hour.

Below is an example using the EURUSD 4 hr chart showing how the systems and patterns work well on the higher timeframes.

Two Fibonacci retracements have been drawn on the chart above from two different on low points. Two cluster points are drawn where the 61.8% and 32.8% retracements coincide and the 61.8% and 100% coincide. But note the second cluster is also a Double Bottom pattern and a descending wedge with a bullish engulfing candle. This is also a good example of how these patterns etc work well on any timeframe as this example is on the 4 hr chart. It also stresses the point why you must look at all timeframes. This chart above illustrates so many other examples. Look at the top where a Double Top has given a reversal pattern indicating the up trend is over and retracement is about to take pace. This methodology we use in the CI System is so powerful compared to other mechanical strategies as we look at many factors and the more we get, the more powerful the resultant move is.

Each time the EURUSD has sopped, reversed or consolidated there has been a good reason for this, ie a fibonacci retracement, trendline or a chart pattern or a combination of these factors.

This is why you must draw all the relevant lines in so there are no rude shocks ahead.

EURUSD,H1 L-1S87 1.15-33 1.1^4 1.1586

In this example, t"e Euro traded between the trendlines and Fibonacci 61.8% retracements ignoring the Pivot lines. This illustrates the importance of 1 ooking at the big picture and marking in all significant lines

ËljS-°A:.H|efracpmenf fL1565 to 1A74S)

Created with Interbank FX 'Trader. © ¿002 MeteQuotes Sofware Carp.

After the main move, note how the Euro set up again for the next day forming a symmetrical-triangle for the next move. Note that there is also a Lower High within the triangle

Note how the Euro went "througg bOTh"Sr an$ aTrencT line to a 61.8% retracement.

Created with Interbank FX Trader, © 2002 MetaQuotes Sofware Corp.

Note how the Euro pauses first at S1 then proceeds to the 61.8% retracement for the day, then retraces and finally breaks through the Pivot "ne P

Note how the Euro pauses first at S1 then proceeds to the 61.8% retracement for the day, then retraces and finally breaks through the Pivot "ne P

"Pattern formatron._The-bi;each-resulted in a move of+100 points or (if P was the target +60 points) Again note the Higher Low inside the Symmetrical ||j Triangle.

17:00 18:00 ÏM0 20:00 21:00 22:30 23:30 0:30 1:30 MÊ 3:30 4:30 5:30 6|30 7'JQ W 3i30 10:30 11:30 12:30 13:30 14:30 15:30 16:30' 17:30 18:30 16:30 20:30 21:30 22:30 23:30 0:30 H5

■ Created with Interbank FX Trader, © 2002 HeteQuotes SoFwer^ Corp.

Entry points are cleariy visible result from chart patterns such as Symmetrical Triangles, Highs (123s), engulfing candlesticks, Pvot Lines and fibonacci retracements. Exit points are also cleariy marked again by Pvot Lines and fibonacci retracements.

"Pattern formatron._The-bi;each-resulted in a move of+100 points or (if P was the target +60 points) Again note the Higher Low inside the Symmetrical ||j Triangle.

17:00 18:00 ÏM0 20:00 21:00 22:30 23:30 0:30 1:30 MÊ 3:30 4:30 5:30 6|30 7'JQ W 3i30 10:30 11:30 12:30 13:30 14:30 15:30 16:30' 17:30 18:30 16:30 20:30 21:30 22:30 23:30 0:30 H5

■ Created with Interbank FX Trader, © 2002 HeteQuotes SoFwer^ Corp.

Entry points are cleariy visible result from chart patterns such as Symmetrical Triangles, Highs (123s), engulfing candlesticks, Pvot Lines and fibonacci retracements. Exit points are also cleariy marked again by Pvot Lines and fibonacci retracements.

Once you learn and practice ussng the methods within this book, trade opportunities will become visible everywhere.

Green arrows mark entry points and red arrows exit points.

The CI System can be used on other time frames. For example the following charts are the Euro Day charts.

The entry, exit and sop management are the same as on the shorter time frames. All the patterns are the same and give the same sgnals.

The horizontal purple lines show where the sops are pace as they follow the trade up.

When usng larger timeframes, you need larger sops to cater for the bigger pullbacks and consolidations.

Created with Interbank FX Trader, © 2002-2003 MetaQuotes Sofware Corp.
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