{quote} Essentially you'd like to be mindful of any swing point as price could and most likely will react in some way to each one. But in my experiences the strongest swing points are the ones which lead to new highs. In your example, Level 1 is the start of the move which lead to the new high (breaking the yellow line to create the NSH). Technically you could say Level 2 is the leg that lead to the NSH, but my experience leads me to believe that there are stronger reactions at the origination of the whole move. Look what happens if you draw some...
.. i get your point. so,to sum up i keep this :'' Technically you could say Level 2 is the leg that lead to the NSH, but my experience leads me to believe that there are stronger reactions at the origination of the whole move.''
As for the purple correction that you marked,follows 100% our rules:
1)price touched a support level (the famous levels 1or2)
2)price has produced a weak NSL so we expect a deep retracement
from 1 + 2 price did exactly what should do and also respected the harmonic 1:1 proportion ,as you marked with the purple lines
Maybe i wouldn't take this trade because i don't prefer counter trend,,but...
one last thing:
Could you explain this : ''Also Damian has said when you see price retracing to look to where the most amount of structure is within the swing that's being retraced. This is something that's helped me out'' because i couldn't understand ..
or tell me in which video or post Damian talked about it??
learn more , earn more
thanx for your answers!!
