5/9 Move

[Trader Question]

2 Questions

1 I noticed that the 5/9 (which we know is an influencial line) today moved from 868 for Monday to 883 for Tuesday. Although it is still Further Out from Mondays close and a bit back from todays close at 897.75, Is it significant or have any influence when it moves up 15 points in one day?

D.M.

[pldot]

===not in and of itself but it is interesting that we are moving up from the "tons of 5/9's " below us...

[Trader Question]

2 When we say support is from the prior days close to the PLDot (I.e. Monday's close is 897.75 and the PLDot for Tuesday is 892) is all that "space" inbetween considered support -

D.M.

[pldot]

===yes, with "nodes" within it where the specific tools reside...

[Trader Question]

I've only considered support to be - in this example - the PLDot 892 -The significants being that if prices get to that level the 892 will provide support - I've haven't thought that the distance between the numbers meant anything.

D.M.

[pldot]

===it does...

[Trader Question]

Or should I consider that as long as prices stay above the PLDot then the price will resume its "push" back up - and therefore I should only consider "Long" positions - until the PLDot or whatever the support is - fails.

D.M.

[pldot]

===that's too simplistic... you know how support acts... a number of different ways... and when it hold, it holds and the flow reverses on the LPT... ... and you know about flow...