In the third stage, we also determined the trend line market, every time the price hits it, it causes the price to return, so it is important for us.
Based on momentum and distance and depth
Compare the first momentum swing with the second and third momentum swing based on the speed and acceleration it has traveled.
Compare the distance traveled from one swing to the next, indicating that the second swing is shorter than the first, indicating that the trend is weakening.
Depth is the meaning of pullback
In the first swing, the depth or the same pullback is smaller than the second and third swing pullbacks
This indicates that fewer buyers have bought in the first swing
1 We expect an uptrend or downtrend to maintain the next level of support and resistance without showing any evidence of weakness.
2 When an uptrend or downtrend shows evidence of weakness, we expect a complex correction rather than a reversal.
3 We expect prices to test our support and resistance levels without showing any evidence of strength
4 If power appears at one of the support and resistance levels, we expect the price to break the level, and after the failure we must examine the price movements to see if it is weak in failure or strength in failure.
What should the price movements look like to support my analysis and scenario?
When the price moves in an upward direction, a good strong momentum should be seen in the swings
The first to second swings must travel a good distance
I have to see the buying pressure in the size of the candelabra body
In the second step, we identified the targets
In the third step, we measured the risk to Rivard
And in the last step, we specified the entry point
These are all steps a successful trader can take before entering a trade
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