I may be getting a little ahead of myself, but if there is a conjunction of multiple lines (5/2, 5/9, 6/1) in different timeframes at a given price level, does this add importance to that price level?
M.M.
Lesson 4
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Trader Question
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Re: Lesson 4
Upon reviewing the analysis screens in Lesson 4 (Screens 13-15), I am having some difficulty understanding the explanations you give:
(1) If the weekly 5/9 fails, is it because there isn't enough energy to push prices in that direction. I noticed a couple of times where 5/9 down failed that there was a PL dot push up working. Does the push tend to override the lines?
(2) When a line fails, but then holds at a slightly lower level, is this a true failure or am I getting ahead of myself?
M.M.
(1) If the weekly 5/9 fails, is it because there isn't enough energy to push prices in that direction. I noticed a couple of times where 5/9 down failed that there was a PL dot push up working. Does the push tend to override the lines?
(2) When a line fails, but then holds at a slightly lower level, is this a true failure or am I getting ahead of myself?
M.M.
Re: Lesson 4
The reason why the 5/9 will fail will be rooted in the action of the HTP, that is, the monthly and the quarterly, and we have not yet explored this aspect. At this point you should be familiar with monitoring these actions, and noting how the daily LTP acts in these situations. Your question shows that you are indeed doing so.
We talk about a line breaking or holding in relation to the close, not the high or low. In other words the high might poke through a key level but the level is holding if the close is below that level.
We talk about a line breaking or holding in relation to the close, not the high or low. In other words the high might poke through a key level but the level is holding if the close is below that level.