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Ok, now some questions of mine:
1. I am having a hard time figuring out where to place point 1. How far to the left do I need to llok to see if we are in a range?
2. You said earlier: "It really only works in a consolidation phase of the market. I believe point one is supposed to be the first pivot in the range, then point 2 is an attempt at a new high/low, which would fail (confirming range), then point 3 is a low below point 1 which also fails..."
So point 1 should be the beginning of the range? Am I also understanding correctly that most of the time the pattern will go in the direction of the trend (trend which was in place before the range started)?
3. You said : "5 and 2 are where to watch for big volume.
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Does that mean we want big volume at 2 and 5?
Thank you very much,
Bert |
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Hi Bert,
1. point 1 is harder to locate, look first for point #2. It should be dramatic, sharp, with volume. There should be traders getting shook out.
2. point 1 is within the range, usually around the 50% level. Not necessarily the beginning of the range, but at a point where volatility begins to expand.
Yes the trend on the higher time frame dominates (if there is one)
3. You are correct.
There are some web sites out there that detail this stuff, some are more accurate than others. You will only start getting this from seeing them real time and making note.
You really juiced this thread - as you noticed, there was no structure, it just kind of rambles forward. I am not an instructor, nor do I have time or energy to put together what you are asking..sorry! But I am glad you have learned a bit. There is a bit of work to learning market geometry, but it is valuable knowledge..