Lesson 8

[Trader Question]

L 8 Sec 1 Scr 55

Now if the last bar was not there yet, What would we draw? What would we draw for the next monthly anticipation? 5/2up, 5/2dn??

R.S.

[pldot]

not the 52 d 'cuz there wern't none....

but all of the other liens would hav been there, 5/9s always, 1-1's always, envlope always.
You will learn these groupings of lines into areas/zones of support....

[Trader Question]

Lesson 8 Sec 1 Screen21

Why not a 5/1dn breaking as well?

R.S.

[pldot]

Yes, that's right. 5/1 would have broken first, adn then 5/2. also, envelope top, also 1-1 h, etc etc.
The grouping of resistance points was not holding where you might have thought it would be holding, , and that failure would be your signal....

[Trader Question]

L 8 Sec1 Scre 28

At time l:58 the 3 bars going up to R, what would you have drawn here?

R.S.

[pldot]

The usual... 5/9s, 1/1's.
You're flummoxed by the tiny bar, can understand. However, normal collection of lines still exist.
The point here is that resistance is holding. Resistance consists of the termination points of lines, envelope, (and, very importantly, groupings of lines and points, which will be dealt with in lessons 16 ff) and the question is, is that resistance holding or breaking. You expect it to hold at certain places dictated bu the HTP, etcn etc etc ....

[Trader Question]

L 8 Sec1 Scr 23

Would one draw a 5/9 up, and or a 5/2 dn?

R.S.

[pldot]

Those lines exist, yes. 5/9 not relevant. 5/2 would be the question of the hour.

[Trader Question]

Lesson 8 Sec 1 Screen 19

Lets say the current Bar where the yellow arrow is pointing is not there yet only the 1-1 bars exist.

I don't understand yet how one knows which DG line to draw. I see the 5/2 dn, I see a 1-1 low hi , 6/1 up and a 5/9 up. How does on know which line to draw and use for a particular situation such as this simple example.

I know you said the software will do that for me but because I don't have the software yet and I also have my account on hold with Trade Station so I cannot at this time do my personal research

want to learn how this is done without the software and Trade Station.

Thanks again for your time and support.

R.S.

[pldot]

==52 exists. etc.
software is a tool, not a brain. It draws what exists, then you deduce the significance of that.

yes, you should be doing that personal research