We have a 4H - 30m - 5m chart opened.
We are going to study how price moves around our 50/100
We are going to watch how the moves around the 0 level line and
the 20/80 levels - blue dotted lines
The 4H is in-between the 50 and 100 . This I call an inner range. it has no real direction or momentum. When price breaks out of the inner range it will have direction and momentum. Watch this pair over the weekend and make copies of your chart with the camera in the lower right corner.
The 4H is above the 80 level. Price can go half way across to the 100 and fall back to the 50 because the is above the 80 level. Let's watch and see if it does.
Price may just go across to the 100 so let's watch if that happens and what the looks like during that.
If price does come back to the 50 two things can happen. It can break below the 50 and retest the swing low on the 4H. or price will try a second time to make it across to the 100 . Watch how the looks like during all of this and make sceenshots. We are not trading here we are just studing and educating ourselves how to use this indicator. As the 4H is doing all of this you want to be watching and documenting how the 1H and 5m charts look and how they are acting in these different situations. This is a great pair to teach you all of the ebb and flow of price and how the indicator reacts to it.
You are watching on the 30m and 5m how price moves around the 50/100 and how the is moving around the 80/20 levels and the 0 level line.
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