Lesson 17

[Trader Question]

Dealing in "real life" with this question/connundrum.... It pertains to the SPZ:

Based on my limited understanding (L17 still...actually in process of reviewing previous lessons), found myself wondering how to deal with what appears to me as a contradictory HTP vs LTP situation. If you have any insights, I'd appreciate them.

As of 11/30 into 12/1, looking at the daily and weekly, it appeared as if a dotted line was trying to form (daily with ext 52/NB support; weekly with 61up/EB). By 12/2, the 60 min was definitely in an accumulation mode, with the close having this and the daily in a c wave.

My problem has to do with the monthly (perhaps I should not look at it since the daily is my focus?). Here, as of 12/1, Nov close found it under the ET, hence looking for S way down. My question specifically has to do with how to handle this. Do we expect it to go to pl dot? Do we let this expectation prevent us from going long based on lower time frame action? Or do we look at the weekly and daily and say, hey we are dealing with S here, and a C wave situation up, so forget about the monthly giving us a S situation, at least for now.....

Am I close?

D.A.

[pldot]

Yes, you're on the right track in focusing on the weekly/daily and using the monthly as backgorund given the task of trading the daily... As youwill see in later Lessons the LTP flow will give you guidance as to what is likely to occur. Market action on Friday certainly showed the weekly PL holding and kicking the market upwards..and you saw the forshadowing of this on the 60 min etc....watch the LPT and ask is the marekt starting to do what we anticipate that it should do or is it doing the opposite...
First we deal with nearby support, and don't worry about furtherout support until the nearby breaks or is likely to break...