Congestion

[Trader Question]

I'm starting to back and fill on my P&L knowledge The reason the Daily is moving into congestion is because the weekly is in the process of doing that but is being propped up by the Monthly which is moving up


DM

[pldot]

===yes, that's it. bingo. Caught between two strong forces, forces it onto congestion.

[Trader Question]

Also I've revisited 1-1 zones and to further support the "support" is that the 1-1 Hi zone is narrow and represents a lack of or negligible resistance

DM

[pldot]

==yes, though I don't spend a lot of time these days watching the 1-1 zones.

[Trader Question]

I have not paid to much attention to these in that the course mentioned that at one time these were called support & resistance zones but after you had worked with them that they did'nt always represent that

DM

[pldot]

===well, they do work, especially as exhaust flags, but they are incorporated into the nearbys etc, and I don't display them on my chart. I do display the 1-1 hi and low though, so can visualize...

[Trader Question]

Question then is how much emphasis should I put on these when determining support & resistance??

DM

[pldot]

==eventually everyone get's their favorite combo of tools...You don't have the software package and so presumably do not have the nearbys...

[Trader Question]

The Difference between the "Live" Weekly Pldot and the Static is minimal with a slight turn up - what does that mean? That the weekly has stalled
and resistance is flowing in over support

[pldot]

===well... if weekly is moving strongly then there will be a big space between weekly live and static, no? If not so, then little space between, right? If not so, then no strong directional move anticipated, but more of congestion type move, right? and thus, you know what to expect in terms of su/ r holding, which tools likely, etc .. .