GDX Quad-Timescale Oscillators Agree Elliott B-wave of (2) down
Updated
We're at a great juncture on GDX for illustrating how Fractal Resonance Oscillators can help confirm a particular Elliott-wave structure. This is Avi Gilburt's primary count on elliottwavetrader.net and (for now) it perfectly matches the oscillator states across all 8 timescales.
Notice the upcross on 15-minute oscillators coincident with the little bounce at end of day Friday. Simultaneously, the 4-hour oscillator finally registered a downcross sell. It's VERY common to see these simultaneous opposing peaks on oscillators ~4 rows or 16x apart. We trade this with an immediate scalp buy but are ready to sell more heavily on next 15-30min overbought downcross and then buy even more heavily as 4-hour becomes oversold.
This kind of scalping along the shorter timescale with big positioning guided by longer timescales is important. Backtesting shows that if you solely try to trade the longer timescale crossovers (i.e. take this 4-hour sell right now even though we have 15-minute buy) you will usually LOSE money due to the large lag in the longer-timescale oscillators.
Notice the upcross on 15-minute oscillators coincident with the little bounce at end of day Friday. Simultaneously, the 4-hour oscillator finally registered a downcross sell. It's VERY common to see these simultaneous opposing peaks on oscillators ~4 rows or 16x apart. We trade this with an immediate scalp buy but are ready to sell more heavily on next 15-30min overbought downcross and then buy even more heavily as 4-hour becomes oversold.
This kind of scalping along the shorter timescale with big positioning guided by longer timescales is important. Backtesting shows that if you solely try to trade the longer timescale crossovers (i.e. take this 4-hour sell right now even though we have 15-minute buy) you will usually LOSE money due to the large lag in the longer-timescale oscillators.
Note
This kind of scalping in the direction of short-term oscillators while using longer-term oscillators to guide bigger positions is very important. Backtesting shows that if you try to trade directly on longer-timescale crossovers, (like shorting now based on the 4-hour crossover despite the 15-minute buy), you will typically LOSE money due to the large lag in the longer timescale crosses. They are for confirmation of major trend changes, but the shorter timescales are needed to time good trade entries.
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