Disliked{quote} Thank you very much for your feedback! I think I see what you mean now. So in that situation, without the benefit of hindsight, would it be reasonable to think that it is indeed a HL until the price tells you otherwise? Or should we never have the expectation of HL and LH and instead only have expectations for NSH and NSL? Does that make sense? Because if I was looking at this in real time, I would think that after that HH I would expect a HL there. It ultimately did fail, but I'm just thinking how I would analyze that failed bounce in real...Ignored
Now how we go about analysing that failure of a bounce in real time is by looking to the left of the chart and what is called an Expectation. We have 2 reference points:
1) the HL (not the one in question but the previous one)
2) the HH.
Now if price goes above the the previous HH then you know we have marked the HL. However if price goes below the previous HL then we now have a LL and your trade expectation has changed. If we followed our rules then we would have entered long in the Area Of Interest at the HL in question but in fact lost the trade. Our next trade will be now a Short. But please I don't want to confuse you as this may sound complicated. I'm not as good as Mr Pip in explaining it.
Just be reassured that you have understood the general concept. You need to keep watching and re-watching those videos and the pieces will start falling into place.
GL,
Matt.
As the lights go by so too do the shadows move
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