I am trading strictly price, based on a theory of my own analysis, that the OPEN PRICE, holds the key to Buy and Sell levels.
THEORY
In essence, if the market is, as we say, trending downwards, what is happening is that SELLERS open high, drag price lower, and close lower. This SELLER dominance will be maintained until, the trend bends.
Conversely, if the market is trending upwards, BUYERS open low, push price higher and close higher. This BUYER dominance will be maintained until the trend bends.
TREND BENDING KEY
Since in a downward trend BEARS are in total control of the open price, what we will look out for is an OPEN PRICE by BULLS, which bears are unable to drag further. This will result in a bullish reversal or push. The lowest bullish open price on a swing low which BEARS are unable to drag lower, forms support and will result in buying. The converse applies in upward trending markets.
BUY AND SELL POINTS
The strongest buy points will therefore be the highest bullish open price at a swing high, the lowest bullish open price at a swing low, every bullish open price on the previous down swing.
The strongest sell points will therefore be the highest bearish open price at a swing high, the lowest bearish open price at a swing low, every bearish open price on the previous up swing.
The most recent swing points are the strongest.
We will follow through this theory with live trade examples.
MOVING FORWARD FROM POST#4, I WILL USE A RECTANGLE TO HIGHLIGHT THE BAR WHOSE SIGNIFICANT OPEN PRICE IS BEING USED FOR RESISTANCE OR SUPPORT.
THEORY
In essence, if the market is, as we say, trending downwards, what is happening is that SELLERS open high, drag price lower, and close lower. This SELLER dominance will be maintained until, the trend bends.
Conversely, if the market is trending upwards, BUYERS open low, push price higher and close higher. This BUYER dominance will be maintained until the trend bends.
TREND BENDING KEY
Since in a downward trend BEARS are in total control of the open price, what we will look out for is an OPEN PRICE by BULLS, which bears are unable to drag further. This will result in a bullish reversal or push. The lowest bullish open price on a swing low which BEARS are unable to drag lower, forms support and will result in buying. The converse applies in upward trending markets.
BUY AND SELL POINTS
The strongest buy points will therefore be the highest bullish open price at a swing high, the lowest bullish open price at a swing low, every bullish open price on the previous down swing.
The strongest sell points will therefore be the highest bearish open price at a swing high, the lowest bearish open price at a swing low, every bearish open price on the previous up swing.
The most recent swing points are the strongest.
We will follow through this theory with live trade examples.
MOVING FORWARD FROM POST#4, I WILL USE A RECTANGLE TO HIGHLIGHT THE BAR WHOSE SIGNIFICANT OPEN PRICE IS BEING USED FOR RESISTANCE OR SUPPORT.