Is the he setup short because price can't gain back the support 1.1184 ?
UnknownUnicorn461520
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@DingDingDon, the thick blue line is drawn from the Weekly chart, as significant levels that were gained to reach the high of the leg, indicated by the arrow. Dotted lines are Daily levels of interest. Right now, price is contained within the highlight squares. I'm fitting the move up (to the left) with the current move. We use the leg indicated to the left, because it was the leg of significance to form the high at 1.16xx. What you will notice is price will form smaller legs inside the bigger weekly/monthly legs. Those are containment legs. Price usually attempts to exhaust the levels within containment before progressing to the next higher time frame levels. This is the basics of progression. Once you start understanding this, you will realize that none of these moves are random. Now for your question, I've been short since before 1184, I just decided to make a chart around that time. An important lesson that you must learn is this: if you want to continue going short, price shouldn't gain the level it last lost, and if long, it shouldn't lose what it last gained.
DingDingDon
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@pip_train, Thank you for your explanation! I still can't read all the progression by myself, but I will continue study by following your post. Will post a question if I don't get it.
UnknownUnicorn461520
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@DingDingDon, Takes time. I miss read levels, just as my mentors do. At least you've figured out that the majority of all the other methods do not really work.