Just a quick reference/schematic using the familiar Elliot wave as a map.
Previous resistance turned support/previous support turned resistance.
Multiple examples here. You can plot a horizontal ray at support.
Wait for price to come back to test previous support. If this happen price has only reached your price area.. you're not done yet.Once at this price point you will want to look for distribution.
You will notice other scenarios where price does not reach previous support, continues to markdown after re-distribution. If price does not test support look for adequate stopping volume and additional characteristics of distribution. If you know what you are doing and are comfortable with the risk you may be comfortable with entry there. I usually TRY to wait.
To the right are additional scematics:
-Previous resistance turned support/previous support turned resistance confluent with 50% fib retracement.
-Retracement that does not reach target** ( would you skip?)
-Retracement to the supply/demand channel
Previous resistance turned support/previous support turned resistance.
Multiple examples here. You can plot a horizontal ray at support.
Wait for price to come back to test previous support. If this happen price has only reached your price area.. you're not done yet.Once at this price point you will want to look for distribution.
You will notice other scenarios where price does not reach previous support, continues to markdown after re-distribution. If price does not test support look for adequate stopping volume and additional characteristics of distribution. If you know what you are doing and are comfortable with the risk you may be comfortable with entry there. I usually TRY to wait.
To the right are additional scematics:
-Previous resistance turned support/previous support turned resistance confluent with 50% fib retracement.
-Retracement that does not reach target** ( would you skip?)
-Retracement to the supply/demand channel