TradeVulture

You Don't Understand Progression, So Why Are You Trading?

FX:EURUSD   Euro / U.S. Dollar
I annotated some larger time frame legs to signify what progression looks like. Progression is the process which price moves from either a level of support gained/lost within it's respective legs. I didn't mark everything, but you should get the idea. If you can first identify the leg price is currently retracing, you know exactly where price will go. There is no guesswork. Since this chart is a monthly view, technically, each monthly candle would represent a leg in itself, where you would see progression of support levels being gained and lost (exhausted) on a smaller time frame. Once those levels are tested, progression through the legs continues, creating what you might call trend. I color coded a leg and a corresponding leg that was used for retracement, to exhaust leg starts. Until you understand legs and progression, you probably shouldn't be trading.

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