ProfLogic's Method
- Thread starter El Guapo
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Anytime you are creating a Breach (HH or LL) that particular chart is showing you strength in the direction of the Breach. This is way when a PPF or failure to create a HH or LL as your next oscillation, you are then trading back toward and in the direction os strength.
A Breach PPF is a weak Breach. A weak HH or LL because it didn't break through by a full 7 ticks. It only broke through by 6 ticks or less. So you are then trading FROM a weak Breach to a Strong Breach. Anytime I can attribute weakness to any oscillation I do not want it part of my trade set up.
Every oscillation, in my environment can only have one of 4 possible outcomes:
PPF - Physical Price Failure - Oscillation Failing to make a HH or LL - Sign of Strength
Breach - Oscillation making a HH or LL - Sign of Strength
Breach PPF - Breach Physical Price Failure - Oscillation making a HH or LL but only by 6 ticks, not a decisive HH or LL - Sign of Weakness
Match PPF - Matching Oscillation of the previous H or L, weak PPF - Price Exactly Matching but still failing to make a HH or LL- Sign of Weakness
Optimum is to trade from STRENGTH toward STRENGTH.
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