DislikedHi Jarroo,
thank you for everything you have been doing for us newbs! I've been learning a lot but still strugling with the basics... takes time I guess
Can I bother you with another newb question? Here it goes:
Why do you think price reacts to Weekly HCR/LCS on the Daily charts. Does buy or sell orders acumulate at those levels? I thought that the market looked more to the Highs and Lows...
Thank you very much for everything.Ignored
Its a good question . .Price still reacts to Highs and Lows . . and Buyers and Sellers are definitely looking at these levels for opportunities, S/L placements etc.
But it is my thought that the market will put a line in the sand at different levels and say, "Price will not Close above this level or Price will not Close below this level."
Once that "Close" level is established, Price tends to test that "Close" level and it cause Highs and Lows once PBT&CAorB them.
Traders and investors always talk about the "Close" of Price. .
Have you heard this conversation before ?. .
Trader: "Wow, the Dow was crazy today?"
Trader's Buddy: "Really!? Where did it close today?"
Trader:" Dude, it was freaking wild today . .unbelievable."
Trader's Buddy: "Ok. . but where did it close today?"
Trader: "You're asking, where did it close today??"
Trader's Buddy: "Yes, . I'm asking where did it close today?"
Trader: "Oh, . . it closed a little lower than yesterday."
Trader's Buddy: " Wait? what? . .Ok thanks."
Indicators show the past. Price Action "Indicates" the future.