-Price is in contraction and building shelf at the high
- buyers will freak out as stops start getting run and fall back into previous swing
- buyers from last low want to step up and buyers that missed the last run will pile in at the higher low.
- stop is under known buyers that held and entry is at buyers that lifted price to new high
- this is based on...
Price is in the upper half of the Swing and is in contraction - after contraction is expansion -
trade is for expansion higher out of the minor contraction to a new high. Have your Trade Plan
and take your chances.....
Sellers took control of the market with the tail up at the high
buyers tried to go higher after the tail and sellers hit them back down
Buyers tried to step up and hold the line but couldn't - sellers swapped them out
Market is going down now until it's not
Wait for the expansion back into the swing before getting long
price will pull back into the major impulse leg
make its pivot and expand out for new high but to be sure
target is at the Median Line for 3:1 trade
Stop is a cash Stop and is 30% of the reaction leg of the swing
Trading Continued Behaviour
Price has Broken the Diagonal Low and will look to Retest the Back side of it filling the Gap before moving lower
Principle is Price Moves in a Flow over Time
The Flow Has turned down from its consolidation upward and will expand to the Downside
Principle is For Every Action there is an Equal and Opposite Reaction (Newton)
Price is Pulling back from the low in REACTION LEG of Swing.
Price is Pressing higher into the 2nd half/Growth zone of the Reaction Leg.
Trading a quick Long into the High of the Reaction Leg.
Price is PUSHING so Buyers will be quick to exit if Price starts to eat back into their position .
Keep STOP tight and look for a 3:1 trade up into the Stops of the Sellers.
Buyers and Sellers are keeping price in a Range
Buyers are holding at the low
Buyers step up
Buyers get washed and Pivot is created
Buyers step back up and take price higher
Buyers are turning price up
Looking For a Double of the Range