Ok the basis of that post is the breakout traders "buy the breakout" sell the "breakdown". In theory its easy in practice its a little different.
People draw a trenline (tdl) down or up that reflect the price retesting Last high (lower High) and pushing more up or the Higher low and pushing more down in downtrend, So you can draw a trendline cause the price reverse at some fib level making the trendline effective.
At one point the price will stop to trend up or down and will consolidate. So price will range and of course it can reverse but its not 100% sure. When price consolidate its because it need a break before reverse or push more in the same direction to the next level.
As we can see in the chart of uj in the majority of the case the broken tdl is also a reverse signal. If its not the case price will push more into the same direction to test next level. If you look at the divergence based on RSI inidcator you can verify that price is testing the next level but is loosing momo. In fact people have to make a bigger "effort" to keep the price at that level and that is a sign of reversal
I hope it will help you or not
Blue
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ok here we are from theory to practice
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plongggggg
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well done
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AlainDaccache
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Hello Blue I love all of your posts and this one is so insightful. I'm a beginner trader (started out last month, still on demo and learning moving averages, candlestick/chart/harmonic patterns and technical indicators etc.) and I'm having a hard time with Fibonacci levels. What did you mean by "the price reverse at some fib level"? Can you give me an example like which points to you take for the 0 and 100% in the retracement? also, I've been watching Trade Empowered videos and stumbled into something like "Fibonacci inversion". That's quite complicated for me and if you could clear my mind even a bit i would be so grateful. Thank you, and to our success!
jfjl88
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whats the view now that it looks like it is breaking the upward TL?
kentg.mckinney
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Thanks
RalphStPierre
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great post..thank you sir
DatDudeDanny
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Thanks, that was very informative.
tirta18
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its doji on weekly and gravestone doji in daily. I'll sell this pair for one week or less..
ehaerim
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loosing momo or losing momo? And what do you mean by that?