That's what I've been doing for six months. Today was an excellent example of how to implement it. One can lead a horse to water . . .
We found Sellers at 20, the only thing I can relate here is the apex of a hinge on the 6th. If 20 does not hold then as DB said in the ghost thread 30 is the next level. The trend is up in the hourly and the DL is solid so far.
. If you look at the 5hr chart there was some support in December at 20 and the next level would be 30 which is close to the 50% mark from yesterdays high to low
All "live calls" today were posted on the chat, thanks for all who showed up. The hindsigth analysis is here. The premarket was characterized by small chop (18-20) at the open sellers tested 18 and failed, allowing buyers to take control and break the TR. 1. Bougth at the RET after the BO, but it rapidly failed and the DL was broken. 2. Then came a RET on a HH, not my favorite, but... it prompted the short that was also short lived. After prices failed to break below 20 my reading was another TR (20-26). 3. Sellers failed to break through the premarket congestion and we were at the bottom of the TR so I took my chances and placed the long after the DL broke, the thing in my mind was 26, if it held then it would be chop and my trade should be exited if didnt (as happened) then I could be in a nice trend. Around 10:06 came the first DL break, but it was no definitive so I just waited for an entry in the opposite direction to trigger before exiting, that did not happen so I started fanning the lines. By the second fanning I realized that the lines from 10:00 did not reflected anymore the pace of the trend so I traced a new DL in the context of a TC. 4. The DL was broken at 10:24 so I followed the drill and took the short. Had to be somewhere else so I stopped my day at this time. Not the best call I dont think I could have taken a long at 10:41 as that would have required a REV entry (No line break) as well as any other long afterwards. But given the extension of the movement from 20, one could have chosen not to close the trade around 10:28 and keep the trade going waiting for prices to reach the other extreme of the TC in the hourly. But that is just CSW.
Well, at this time buyers seem stuck around 89, but the DL from 8:48 still holds. A HH at the open would validate the uptrend and would mean also fanning the DL in the 60 min interval. Above 89 only 95 seems to be a threat. If we reverse here, then we could face demand around 76. For those interested: http://stinto.net/en/chat.htm?refId=rnylr#