Well first educational post since long time
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
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
