Yes, somewhere along the line like u say. This is not JD's term as I do find this useful to gauge Excess acceptance, hence any violation of that excess break point would render the excess invalid.
JD have another support reference which he term as spike base. Essentially excess are spike probes testing for high price till acceptance..the base of the spike represent the beginning of the probe.
Semantically speaking perhaps the term Excess acceptance, or Spike acceptance level would be more appropriate, that would be in line with JD's terminology...
Just to add to discussion on spikes base (as support & resistance) & test scenario with some interesting observation of USDJPY pair.
1
revious Thurs New auction down created an excess, we have a spike base.2
rice recover on Tuesday, tested the last Thursday spike base & fail with excess..3:Wed price fail effort to rise to take out the Spike base during London open (red text)
4:Spike base was also form on Tue & Wed too. (mark as SB on chart)
5:Thursday Asia (blue letters) opening test drive, test & reverse back the WED spike base, eventuate into fair-value, in-line with Tue spike base level.
6:Friday price Asia opening drive down, did not even bother to test the spike base or fair value of Thur.
So we have mutiple signs of weakness since Tuesday, prior to NFP day sell offs, all because of fail test on spike base? hmmmmm
Anecdotally Speaking of cause...
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so i may have to revert back to Consolas...
