The Devin Sage X-Sequentials Chart analysis approach is a new branch in technical analysis where patterns per se are not seen as single entites without any correlation to each other or as stand alone single patterns.
Instead of dealing with multiple Chart patterns, all price activity is grouped into basic types of
X-Sequentials Patterns enabling the technical analyst to derive consecutive forecasts in price and time.
This article series will enable the reader to independently and successfully forecast market moves and trade them accordingly to specific rules, which will be outlined in the near future.
The Devin Sage X-Sequentials approach categorizes all price activity into 3 basic pattern groups which subsequently lead to groups of subpatterns.
Those subpatterns allow forecasts not only in price and time but in shape and the knowledge of how the market will behave next. For example, is a breakout setup to due? Will the next trend abruptly end and reverse without reching it´s primary price target ? Will the market unfold a very proftable trend move?
X-Sequnetials is appliable in any kind market.
The basic pattern are :
Obviously the market are exhibting recurrent patterns which are working. Just like the Head and Shoulders pattern ,symmtrical market moves and many more.
The billions of transactions in the financial markets are always driven by primary emotions of greed and fear. Whether they´re based upon news or not,herding and other decision triggering phenomenon cause these scaling symmetrical and reccurent patterns.
All financial transactions are scaling price patterns
Always included is variety . The patterns are always different in price and time -after they´ve formed : Patterns might look similar but they´re different.
The term Scaling means process of forming price patterns
Knowing the degree of an unfolding differentness (the pattern which comes next) will give you the advantage you might have been searching for.
So stick with this X-Sequnetials article series.
Price activity in X-Sequentials Analysis is categorized with single line connections on specific points of every price pattern in order to derive scale factors which are matching the next patterns scaling in price and time.
Derived scale values are projected according to specific rules and are equal to the markets next unfolding pattern and it´s own different scaling in price an time.
These are mathematical relationships which are simplified to the degree of connective line analysis and they are the basis of the X-Sequentials Chartanalysis Approach.
We start with a simple example of what I am talking about.
The example shows a X7 X-Sequentials pattern and it´s correct line relations .
Setting up correct line relations are the basis of successfull X-Sequentials forecasts of price and time.
The X7 in the following Chart indicated a reversal to the downside
The low was exactly projected in price.
Price projections are always the displaced areas relative to point 7X7 and the 2X7-3X7 line of a X7 pattern.
The term area specifies a vertical line.
It´s neccassary to include a variation space (look at point 4X7 and the green marked area) in every X-Sequnetials projection.
This variation space has to be subtracted from the x,y line of the X7 pattern which made up the price projection.
In forthcoming articles those details will be explained in more detail.
Following next are multiple examples of The Devin Sage X-Sequentials Chart analysis Approach to forecasting and trading.
Example DAX Future Continuous:
In Summer 2009 the german Dax Future Continuous formed a X-Sequentials X5 pattern which indicated a downmove. The price patterns projected a low at 4560-20 points.
The shortsignal took place on 6/3/2009.
Since the previously mentioned price projection matched with a previous low, it was known to the
X-Sequentials Analyst and Trader that an uptrend will unfold until at 5860/70 points after the downmove was completed.
Chart 1: DAX Future Continuous, X-Sequnetials 60 Minute Chart
Chart 2: DAX Future Continuous, X-Sequentials 60 Minute Chart.
The Market bottomed at 4521 points.
After the low at 4521 points a upcomig up trend until 5860/70 points was to expect.
Chart 3: DAX Future Continuous, X-Sequentials 60 Minute Chart
According to the X-Sequentials forecast the market peaked at 5860/70 points.
Chart 4: DAX Future Continuous, X-Sequentials 60 Minute Chart
Eur/Usd Example :
The Eur/Usd formed a X-Sequentials X7 pattern (6.11.2009-8.5.2009).
The short signal took place on 8/7/09.
The ½ price projection of the X7 pattern matched with low 6X7 indicated an upcoming breakout to the upside .
The projected target was at 1.5027-1.5183.
It was also known beforehand that the Eur/Usd pair after forming it´s top was about to fall back into the are of 1.44-1.42.
The higher low was formed on 8/17.09 at 1.4043.
The forecasted trend move found it´s peak on 10726/09 at 1.5063.
Further Trading Examples with the Devin Sage X-Sequentials Chartanalysis Approach.
DAX Future Continuous Trading Example:
Chart:DAX Future Continuous, X-Sequentials 5 Minute Chart
1) The DAX Future Continuous formed on 9/29/2009 beginning at 16.45 AM 'till 9.30..2009 ,
11.30 Am an X-Sequentials X7 Reversal pattern.
A downside move was to due.
2) The short entry took place at the area of 5740 points (circled in grey).
The X-Sequentials X7 Pattern enabled the chartist to know beforehand::
3) The price target of the upcomig dowmove
4) The time target of the upcoming downmove
The short exit took place at 5640-5620 points.
It was clear what the market was about to do next (As mentioned earlier those X-Sequnetials detail will be teached to you in detail in the near future):
A Countermove to the upside (X-Sequentials segment X) .
The taget area was at 5720-5740 points.
Accordingly the long postion was closed within that area.
DAX Future Continuous Trading example 2; follow up pattern
Chart:DAX Future Continuous, X-Sequnetials 5 Minute Chart
1) At the projected bottom the market formed a X-Sequentials X5 .
This indicated a downmove:
2) The market was entered short at 5718-5790 points (grey circled).
Known beforehand was :
3) The price target of the upcomig downmove.
4) The time target of the upcoming downmove.
The short exit took place between 5470-5444 points.
Also known beforehand was the price target of the next move after the low (segment „X).
Accordingly the market was entered long at 550-5510 points. (5).
6) The long exit took place at 5668 points.
The next article outlines the rules of the basic X-Sequnetial patterns.
Devin Sage,TXA Trading