Lesson 4

[Trader Question]

Question: Lesson 4 Section 1 Screen 14 Y1


I do not see the 5/1 up over the weekly 5/9 up. Could you please point that out very specifically for me? I see everything else very clearly.

I hope it is ok that I am going to send each question as it arises and not save them up.

R.S.

[pldot]

Weekly 5/9 level is shown by green line on weekly chart and yellow line on daily chart; I have circled both . Arrow points to D 5/1up

[Trader Question]

The D 5/1 up went down and up both with a close in the middle. Is this correct?

R.S.

[pldot]

"It went doen a bit before closing up" No, cannot be. The 5/1 exists on the current bar as a static point, does not move.

[Trader Question]

Lesson 4 Screen 17 Y1

The Y1 bar is current bar. To draw the 5/9 down, we draw from bottom of 2nd bar back to top of 1st bar back to top of current Y1. Is this correct?

RS

[pldot]

Yes, that is correct.

Note that the 5/9 (for example) on this current bar, which is formed by the line drawn through the prior two bars, EXISTS BEFORE THE CURRENT BAR FORMS, and therein lies its value. It thus represents a pre-existing support or resistance level and you monitor how the market reacts to it as the current bar develops.

This is the key point that you were not understanding on your two prior mails.

Critical that you understand this.

[Trader Question]

Lesson 4 Section 1 Screen 15 N1

I see a wkly 5/9 up here as well. Do you always draw from the Pldot in this situation?

Please explain.

RS

[pldot]

Not sure what you are saying here. 5/9's are never drawn from the Pldot.
There is an interesting formation however, in that the weekly PLdot does locate near the weekly 5/9 and that is a potentially powerful energy source forthe upward move...

[Trader Question]

am very concerned that I am not getting most of what you have taught so far, especially in light of the fact that I thought I was understanding most everything until I got to this section.


Y4

I don't see the 5/9 down on the weekly chart to start with and I don't see a 5/1 down as I understand 5/1 downs on this daily. I see 5/3 down and a 5/2 down and 6/1 down.

Perhaps I am being to literal and black and white. Perhaps I don't understand gray areas.

RS

[pldot]

Oh, Your questions show that you are reading carefully. I wouldn't worry just yet. It takes some time to recognize what we are saying. You will find this much richer when you review after having gone through the full set of Lessons once...


See attached....

The red line on the weekly chart is the ermination point of the weekly 5/9's . I have drawn one in as an example. In the original chart there is no 5/1 drawn in on the daily but I have drawn it to show you where it is.

the 5/3 is drawn but not mentioned in the text.