1: this is the point where the buyers originated from
3: we establish a support at the supply area of #1,
that we have some sell orders here
4: at this point number 1 turns into a solid major low,
it is a major low as it is part of the major structure,
and a key part of it, number 3 surpassing number 2 makes
it a solid minor low, as it is part of the minor structure ,
and the buyers surpassed the sellers from 2
what do I think will happen?
* if it happens like I think, it will look obvious, or I will
look like I have no idea what i'm talking about, but here we go..
* if prices comes back into the zone above we know via stats,
the last 2,500 bars, if price closes in a zone it has a 68% chance
of reaching the next zone up
* so we can set a stop order there and use the fact that we are
both at a re-test, the original test which occured at 3, and we are at
a solid major low, the stop loss below this would be the logical move
* the expected move up would be to surpass number 4
* if price closes into the zone below, the trade is invalidated as its most
likely path is the genesis of 1 , which is our stop loss.
* as far as divergences go, we have hidden bear divergence for more rsi and mfi
* we are also oversold on both
* we also benefit from the fact that the low 1 and 3 are bottoms on mfi and RSI , and if we use a support horizontal line, it pinpoints this being another low.
3: we establish a support at the supply area of #1,
that we have some sell orders here
4: at this point number 1 turns into a solid major low,
it is a major low as it is part of the major structure,
and a key part of it, number 3 surpassing number 2 makes
it a solid minor low, as it is part of the minor structure ,
and the buyers surpassed the sellers from 2
what do I think will happen?
* if it happens like I think, it will look obvious, or I will
look like I have no idea what i'm talking about, but here we go..
* if prices comes back into the zone above we know via stats,
the last 2,500 bars, if price closes in a zone it has a 68% chance
of reaching the next zone up
* so we can set a stop order there and use the fact that we are
both at a re-test, the original test which occured at 3, and we are at
a solid major low, the stop loss below this would be the logical move
* the expected move up would be to surpass number 4
* if price closes into the zone below, the trade is invalidated as its most
likely path is the genesis of 1 , which is our stop loss.
* as far as divergences go, we have hidden bear divergence for more rsi and mfi
* we are also oversold on both
* we also benefit from the fact that the low 1 and 3 are bottoms on mfi and RSI , and if we use a support horizontal line, it pinpoints this being another low.
for trading mentorship and community, message me on telegram : jacesabr_real
Haftungsausschluss
Die Informationen und Veröffentlichungen sind nicht als Finanz-, Anlage-, Handels- oder andere Arten von Ratschlägen oder Empfehlungen gedacht, die von TradingView bereitgestellt oder gebilligt werden, und stellen diese nicht dar. Lesen Sie mehr in den Nutzungsbedingungen.
for trading mentorship and community, message me on telegram : jacesabr_real
Haftungsausschluss
Die Informationen und Veröffentlichungen sind nicht als Finanz-, Anlage-, Handels- oder andere Arten von Ratschlägen oder Empfehlungen gedacht, die von TradingView bereitgestellt oder gebilligt werden, und stellen diese nicht dar. Lesen Sie mehr in den Nutzungsbedingungen.