Resistance becomes support (Red arrows)
The new support was tested 2 times by the price which gives more validity to the concept that resistance becomes support
Pattern recognition: I follow 1300 companies approximately and spend hours searching in my watch-list, from Basic Materials to Transportation Companies.
When I recognize a pattern it does not take more than 10 seconds, then I put the name in other list (The price action list)
I use a (Multiple Time Frame Analysis) combined with moving averages for trend following plus the concept of resistance becomes support
and always pay attention to overnight gaps.
The moving averages setup that I use for my weekly chart is diferent than the set up that I use for my daily chart
Look:
Weekly WMA 36-54-74
Daily WMA 110-190-290
The interpretation is discretionary and not a mechanical system
The new support was tested 2 times by the price which gives more validity to the concept that resistance becomes support
Pattern recognition: I follow 1300 companies approximately and spend hours searching in my watch-list, from Basic Materials to Transportation Companies.
When I recognize a pattern it does not take more than 10 seconds, then I put the name in other list (The price action list)
I use a (Multiple Time Frame Analysis) combined with moving averages for trend following plus the concept of resistance becomes support
and always pay attention to overnight gaps.
The moving averages setup that I use for my weekly chart is diferent than the set up that I use for my daily chart
Look:
Weekly WMA 36-54-74
Daily WMA 110-190-290
The interpretation is discretionary and not a mechanical system