Presently reading about congestion and block levels. Terminology is contradictory here, so how to deal with it? You call this congestion border both a green LINE and a BLOCK. You also add the term field, which conveys area (block) as well. So on the one hand we have a zone, the other a threshold. Which is it? Particularly noteworthy in pointing out the resulting confusion is L12-S1 p53. This is presented as an example of a weak block, but in fact is only a weak line. The field/line (?) you show is defined with a series of 6-1's and these break (weak), however you can also draw a bunch of 5-9's that extend up into 2-3 dots back (which define the block!), and which do hold. The green line breaks, the block holds. Hello.
You know it's these kind of questions/issues that inevitably come up where human interaction is required to deal with them. It doesn't matter how extensive a presentation is, nothing can replace interactive learning. E-mails just don't cut it. One wants answers/clarification on the spot. This will now stick in my craw. This is VERY discretionary/subjective stuff here.
D.A.
Congestion and Block Levels
Re: Congestion and Block Levels
You're in the midst of the hardest part of the course... hang in there, things will energe into clarity again as you progress.
Intersting re terminology, we never saw the contradiction between block level and a line on the chart showing that block level. Nothing discretionary here. All significant points on a chart, no matter what (5-9s, PLdot, block level, etc) can be calculated as precise numerical points however they representations of support/resistance and Su/Re can often be wider than a single tick, and usually is. Nevertheless we are always amazed at how accurately this methodology indentifies the support or resistance in question. In your thinking, know that these levels are defined as a specific tick but in practice the market often treats them as small areas. Laster in the course you will see how we devlop these into somewhat larger areas..... Don't let your drive for perfectionism draw you into confusion....
The block is not defined by 2-3 dots back but the dots back frequently mark the area in which the block forms.
The block (aka block level) is a definite number....
Intersting re terminology, we never saw the contradiction between block level and a line on the chart showing that block level. Nothing discretionary here. All significant points on a chart, no matter what (5-9s, PLdot, block level, etc) can be calculated as precise numerical points however they representations of support/resistance and Su/Re can often be wider than a single tick, and usually is. Nevertheless we are always amazed at how accurately this methodology indentifies the support or resistance in question. In your thinking, know that these levels are defined as a specific tick but in practice the market often treats them as small areas. Laster in the course you will see how we devlop these into somewhat larger areas..... Don't let your drive for perfectionism draw you into confusion....
The block is not defined by 2-3 dots back but the dots back frequently mark the area in which the block forms.
The block (aka block level) is a definite number....
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Trader Question
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Re: Congestion and Block Levels
So what's the point of a line (green), when an area (block) is what you are interested in? With the red line, it is in fact a line, but at the other side of the congestion, this is not so. I am just not clear on what you are looking to hold or break down, a line or a block (or is the line simply the near end of the larger block)? In the frame I was referring to, the line breaks, but the block holds. If the line breaks, this then defines the larger block as weak, so one should look for IT to break, ie the upper boundary of the block, at some point?
D.A.
D.A.
Re: Congestion and Block Levels
Well I went back to the sequence of screens in that part of the Lesson 12 and I think I can see the kinds of confusion and frustrations you are running up against... the problem might be that we are getting a bit ahead of ourself in the course at this point .... we will be spending a lot more time on the (nearby) support areas and resistance areas in Lessons 16 and thereafter... and what e mean when we talk about "fields" and "areas" will become much clearer then... in these early parts of the Lessons we focus more on the specific lines and the price levels determined by those lines, and in the later lessons we show how to amalgamate those lines and price levels into more tradable resistance and support areas.... but when we talk about the block levels here, we inevitably fall into also talking about the support/resistance fields associated with the block levels...
So, for clarification... the block level is a specific price but the support/resistance levels associated with the block level will be a somewhat larger area. Why do we spend so much time teaching the lines if we later amalgamate them into areas? We think it important to have an intimate familiarity with the roots of the theory, as it will enhance your comprehension, comfort, and ease of use when it comes to actually trading this methodology. All this will be much simpler, and very productive, by the time you get to the final Lessons... .
So, for clarification... the block level is a specific price but the support/resistance levels associated with the block level will be a somewhat larger area. Why do we spend so much time teaching the lines if we later amalgamate them into areas? We think it important to have an intimate familiarity with the roots of the theory, as it will enhance your comprehension, comfort, and ease of use when it comes to actually trading this methodology. All this will be much simpler, and very productive, by the time you get to the final Lessons... .