rule of 50
i have often seen that ..price can be broken down into small level...consider this ...
1)the price difference between two RED LINES is around 176.
2) between this price difference of 176...u see an GREEN LINE ..
which exactly between the two RED LINE...that is 50% from below or above
the red line..so now the price difference between two level one RED and
another GREEN is 88 (50% of 176)
3) now even this can futher be divided by another line (BLUE ) into half ..
which mean..now the
price difference between two levels is 44 (50% of 88)
now if u notice carefully each of these price level have acted as an support or
resistance or an consolidation peroid .
thats the rule of 50..
each of these level are important and every level is predecided...
TF is weekly here.......same happens in other(smaller)