With the illustration of the pair of scales (supply – demand) clearly implanted in our minds, we scan the moment by moment transactions of the tape, mentally weighing each indication in our effort to learn on which side the tendency is strongest. Not a detail must escape our notice. A sudden demand or a burst of liquidation may enable us to form a new plan, revise an old one or prompt us to assume a neutral attitude.
RDW gives us a pointer to what SUPPORT AND RESISTANCE REALLY ARE !
THEY EACH HAVE TWO ASPECTS
BUT THEY ARE NOT THOSE TWO BLUE LINES.
As I have said RESISTANCE is ALWAYS UP AHEAD.
RESISTANCE IS ALWAYS BEING MET AND OVERCOME.
Now--> "With the line at .04 as the reference ==> Breaking down ? Or a Shakeout pattern forming ?
Probability I see at this moment is the later.
Effort and Result."
Action today esp at .038 increased that probability.
That line at .038 is now very significant.. The bright pink BOX contains an extreme amount of volume and an extreme amount of time..
Not a detail must escape our notice. A sudden demand or a burst of liquidation may enable us to form a new plan, revise an old one or prompt us to assume a neutral attitude.
We must clearly be able to see and note BEHAVIOR ( CHARACTER ).
So we can then Judge the CHANGE of BEHAVIOR (CHARACTER ).
Look at the entire move down from the last HIGH ?
Describe the behavior in terms of the ease of movement.
Remember it could have been just one column !
THEY EACH HAVE TWO ASPECTS.
(supply – demand)
Lets use support as an example.
It can stop going down because SUPPLY will no longer participate !
SELLERS have SOLD and will not sell at lower prices !
or
It can Stop going DOWN because DEMAND emerges that ABSORBS all OFFERINGS.
WHAT fills a BOX ?
and WHAT then makes the CHART MOVE ?
HOW does it move ?
WHY does it move ?
What is being accomplished ?
Aspects of the Market Reality !
A pair of scales.
REVEALING ==> OPPORTUNITY.
Because it is a PAIR OF SCALES that is constantly building a CAUSE that will have an EFFECT.
Motorway
Motors
ReplyDeletetheoretically there is a major shareholder and he is selling down in large amounts spread over the day so as to free up capital.
Very large amounts. Not cos the company is bad but cos he needs the money.
So if no one steps up to the plate to buy the shares its price will go to what market sells.
So could the chart fool us into thinking its sp is diving but infact its cos one bloke needs capital.
Nope, There will Always be selling and games played. At the end of the day that just means opportunity or it doesn't .
ReplyDeleteThe Price Fluctuates YES . But it really can not go too LOW and stay there. Because those who know better WILL BUY.
YES the columns on the chart GO down..BUT then they go UP
There are extremes YES and the chart NEVER ARRIVES at the right price.
But we can never or should never IGNORE THE TREND in those Fluctuations!
Motorway