The Drummond Geometry Forum

I was reviewing some notes and am still unclear on the following.

A 5/1 and 5/2 may denote points of support/ resistance but how do you know if it will be a 5/1 (or 5/2) down or up until the next bar appears?
In other words, once the next bar has formed I can see that I have a 5/1 up or down, but before it forms it seems that I just have a support/resistance area unlike a 6/1 where I am clear on whether it is an up or down (although again, it seems it is still just support/ resistance)

JA

The developing support and resistance areas are active for the upcoming bar, of course-- that bar which has not yet formed, the future bar. As the current bar unfolds, those support and resistance points on the future bar yet to be formed will be "live" and will move as the current bar progresses until they finally lock into place as the current bar completed and the next bar starts -- and the process starts all over again with the new future bar.... "live" support and resistance areas for the future bar in flux until they lock in at the close of the then-current bar.

There is a whole level of analysis based on watching the "live" indicators and their relationship to the "static" (or completely formed) indicators. We cover some of this later in the course and there are some interesting treatments of this on the website.

Also, don't forget that support and resistance only exist in so far as the lower time period confirms their existence. Or perhaps better stated, the support and resistance levels almost always do exist and have an effect, but how strongly or weakly they exist can be hypothized (sp?) based on the HTP structure but proven only by the LTP action.