that the pattern of lower low, lower high is broken.
Now price can always start ranging, resuming downtrend, or changing direction.
best to wait and see with this thread approach.
Son of If You Can Draw a Straight Line . . .
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that the pattern of lower low, lower high is broken.
Now price can always start ranging, resuming downtrend, or changing direction.
best to wait and see with this thread approach.
0939: By now, a demand line can be drawn.
0942: Price has gone parabolic, but a tighter demand line can be drawn.
0945: Price tests the adjusted demand line and resumes its upmove.
0947: If one entered correctly, the trade is now worth 8pts.
0949: Price "breaks" the adjusted demand line. What does one do now?
0950: Price makes a higher high. What does one do now?
0952: Trade now worth 10pts.
0953: Price "breaks" the fanned demand line. What does one do now?
0956: Price makes a higher high. What does one do now?
1000: Price makes a higher high then drops back to test the fanned demand line. What does one do now?
1003: Price makes a higher high. Demand line intact. Trade now worth 14pts.
1006: Price consolidating.
1007: Price makes higher high. Trade now worth 15pts.
1010: Demand line broken. What does one do now?
1011: Price drops below last swing low. What does one do now?
1013: Price retraces 25%. Does not breach next lower swing low. What does one do now?
1017: Price cannot make a higher high. What does one do now?
And so on.
Those who could not answer the questions don't have a well-thought-out trading plan, much less one that is thoroughly tested. The market therefore will have them by the short hairs from the opening bell.
Note also that no mention was made of support, resistance, trend, trendlines, trend channels, volume or anything else beyond demand and supply lines and retracements. Further, only one trade was made.
So far today. Missed first long.
Still need some therapy to stay away from the chop premarket, took the long at 98.75, but now in doubt. If I only take into account the DL from the open, the trade should still be open as the 50% level at 303 is still holding. The break of DL and the LH filled me with doubt, but now looks like the way to go.
The fearful would have exited at the LH and short, perhaps at 10.75, that one would have been a 1 point loser.
He could have placed another sell order at 8.25 but that would have not been triggered. Not sure about placing a buy at 11 given that the SL would have been intact. and that a HL after a LH usually means chop.
As of now the fearful would be waiting for a BO. I guess the brave would still be open and relaxed while the fearful would be worried about a next entry.
He could have placed another sell order at 8.25 but that would have not been triggered. Not sure about placing a buy at 11 given that the SL would have been intact. and that a HL after a LH usually means chop.
As of now the fearful would be waiting for a BO. I guess the brave would still be open and relaxed while the fearful would be worried about a next entry.
That is incorrect. Since the demand line has been broken, the fearful will be out. If they then want to continue, they'll draw a supply line tracing the move down. No short will be taken because there is no retracement in this downmove.
At 1013, this line will be broken and a new demand line can be drawn to trace the progress of buyers to the upside, but there's no retracement for a long here either.
At 1016, this line is also broken, and the fearful look to draw a supply line tracking the progress of sellers. So far, no trades, just tracking.
What then?
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