Why Is The Obvious Not So Obvious?

the point for sure
that most will lure
the fools who be
not you..or me :)

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well, after gaining a bit more ESSENTIAL information, like looking at the chart on Daily TF I have to reconsider my previous statement. price has been trending up on a daily for quite some time and I have no reason to think why it should not keep doing that.

I would see if it goes down a bit (like around 3670, though unlikely) and then enter long.

In general I wouldn't trade this at this point, though.
 
this is my interpretation of what VO tried to explain:

  • Pink arrows indicate the chime / tail
  • they are observed at the end of a "path" - a price development in one direction, indicating a change of sentiment / price
  • that blue line is a representation of a past reference level; here followed by a sharp reaction to the downside (point B)
  • a anticipation / theory could be, that in the region of the second blue arrow there should be some kind of reaction to the downside - it isn't
    • without a hindsight view, my favorite action would be to go long on the next bar - which would be wrong, as it is red
    • actually the red candle could serve as a kind of confirmation of the first pink arrow / tail: a softer version of price change to the downside
    • a anticipation/theory could be, that price tends to correct to the area of the first blue chart
However, this is an attempt to explain and understand the techniques described - please hammer on it, if it is wrong, as it is not my intention to contribute with false or misleading information.

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