Relative to the discussion of Yes and No patterns in Lessons 4 and 5, there is no place (so far) where these patterns have actually been defined and specifically characterized. Here is my "definition" and list of essential components for a Yes pattern. Would you please review it and let me know either if I'm confused and off-base or if I've left out any essential elements? Is this what a Yes pattern really is/does and are there any other important features of a Yes pattern which I've missed?
A Yes pattern is a pattern of price bars on a LTP chart which confirms the strength of support or resistance previously identified on a HTP chart, thereby indicating that the HTP level will likely hold. Using as an example a trend up to weekly resistance and an anticipated weekly Refresh back down to its PLdot, a Yes pattern on the daily chart will be seen, in roughly this sequence of events, as:
As prices, and the PLdots, continue their trend up and approach the level of weekly resistance, there will be daily Refreshes back down towards the daily PLdots.
The downward push of the daily Refreshes will grow stronger as resistance is approached
The slope of the alignment of the daily PLdots will begin to level off (dots will begin to “swing†down)
Downward daily PLdot Pushes will appear and likewise grow stronger the closer prices get to the monthly resistance level.
Finally, the daily PLdots themselves will begin to roll over and move down.
These price actions on the daily chart are a reflection of their reaction to the termination energy around the weekly resistance level.
Because the daily price bars formed a Yes (as opposed to a NO) pattern, we can infer that the weekly termination energy is sufficiently strong that resistance at that level will likely hold. And, therefore, a short trade from that level would have a high probability of being profitable.
Is all of this correct? Did I leave out anything important? MM
Lessons 4 & 5 Yes/No Patterns
Re: Lessons 4 & 5 Yes/No Patterns
1) you're not confused or off base...
2) this is a good starting list and reflects accurately what you have leaned through Lesson 4.
3) you have not left out things that you have seen so far but there will be more in future lessons that will be relevant, as you increase your understanding of what things look like as resistance or support kicks in...
watch especially for things like:
---dots "losing their push"
---progress to and through the envelope matrix system, or the lack thereof ( Lessons 6-7 and thereafter)
---sequence of resistance elements to hold as dotted line and block levels form (Lessons 15-20 throughout)
---flow and its components (Lesson 27)
---what the converse of resistance holding looks like/ i.e. resistance breaking, thus a "no" pattern.. what "no" patterns look like (Lesson 8-9)
In short, we will be teaching more metrics, more measurements, more tools for anticipation as the course progresses, so that this basic understanding that you have now and which is , so far, on track, will be further enhanced...
Hope this helps...
2) this is a good starting list and reflects accurately what you have leaned through Lesson 4.
3) you have not left out things that you have seen so far but there will be more in future lessons that will be relevant, as you increase your understanding of what things look like as resistance or support kicks in...
watch especially for things like:
---dots "losing their push"
---progress to and through the envelope matrix system, or the lack thereof ( Lessons 6-7 and thereafter)
---sequence of resistance elements to hold as dotted line and block levels form (Lessons 15-20 throughout)
---flow and its components (Lesson 27)
---what the converse of resistance holding looks like/ i.e. resistance breaking, thus a "no" pattern.. what "no" patterns look like (Lesson 8-9)
In short, we will be teaching more metrics, more measurements, more tools for anticipation as the course progresses, so that this basic understanding that you have now and which is , so far, on track, will be further enhanced...
Hope this helps...