Hi All,
Kolachi Method believes that each time frame follows the same rules of price movement from 1 M to Monthly chart.Each time frame has unique candles related to its time span and these are used in calculation of emas based on their periods.Kolachi Method thinks it unwise to Apply 200 ema on Hourly then apply half of it 100ema on 30 M chart.
Kolachi Method believes that universal laws are same in all time frames and all scales of creation and need to be observed in totality in that time scale.
The orbit of neptune is unbelievably larger than orbit of moon.But in science we dont measure distance how much one has covered but we ask has it completed cycle or not.
Like monthly chart our galaxy has not completed its one cycle in known historty of creation of this solar system.It doen not mean that moon has not completed its cycle. It completes every 29/30 days.
If anyone want s ride then he can take a complete cyclical ride every 29 days on moon.But if someone i swaiting for a ride of galaxial scale then has to wait for coming generations to find his skull for experiments.
Similarly if a trader is trading hourly chart, he needs only emas of that chart to decide and place trades.He can get clues fom other chart but those charts should have relevant emas on them as per scale of that chart.Otherwise, it would mislead.
Kolachi method advises us to keep away from those fools who want to apply stellar dimensions or half of that on moon.
Kolachi Method says that all universal laws are same.It says galaxy has its own axis which has nothing to do with moon or atom or meson.Each one has its own axis related to its scale.
It is unwise to see half picture on one scale and half on other.KM says look all emas of same time frame.Either look at monthly or look at hourly.It is height of foolishness if we take half ema form one chart and double from other etc.
Similarly monthly chart has axis which depends on and considers monthly candles.It doesnt bother what is on hourly chart.The axis of hourly chart is calculated by 200 candles of hour time duration.The cycle of hourly chart around axis is separate from cycle on monthly chart.
Moreover, Kolachi Method has ema21, ema55,ema100 and ema200.When we switch over to another timeframe, automatically the the relevant emas are switched over proportionately.Koalchi method is not worried about what is the value of particular ema and what is half of that ema.
KM utilizes the proportional behaviour of emas.
Let us say if on hourly chart ema200 is 44.Then ema100 is 22 and so on.
When we shift to 30 M chart, we will see ema200 at value 22 and ema100 at value 11.The ratio of 44/22 or 22/11 remains same.
Kolachi Method says nothing has changed.Let us assume that ratio of ema21 on hourly and ema21 on 30 M is 3.Then same ratio will be between all emas of the two charts.
That is why KM treats each chart as complete and tries to trade it.
kolachi