What of importance takes place within those circles? 1. The PDC acts as R at the open. 2. The DTL is broken after finding S at the demand line. Factoring in the volume patterns, there are implications here for strategy and tactics.
I keep track of the average range over the last 10 days, i.e., take the range for each of the last ten days, add them, divide by ten. Next day drop off the first day, add the most recent day, sum, divide by ten. Currently, the average range for the NQ is 22. I also note the minimum range, which is generally about half the full range. This makes setting price targets simple. And of course I also keep track of trend days (rare) and range expansion days (common) so that I have some idea when to expect fireworks and when to expect snores.
How are we to know in advance why and to what extent someone else is prompted to buy or sell? We cannot know; it is impossible for us to foretell what actuates all of those whose orders are poured into the vast intake of the Stock Exchange machinery during the day's session. But if we study the action of prices; the responses; the speed of the ticker, indicating urgency or the contrary; the intensity of the buying or selling, as indicated by the volumes; and the intervals when the volume is heavy or light -- all these in relation to each other -- then we gain insight or the design and the purposes of those who are dominant in the market situation for the time being. All the varying phases of stock market technique may thus be studied and interpreted from the buying and selling waves as they appear on the tape. From these we form a conclusion as to the balance of the probabilities. On this we base our commitments. -- Richard D. Wyckoff
The first step for a trader is to determine the current trend of the market. The second step is to determine one's place in the current trend. The third step is to determine the proper timing of one's entry into whatever it is he's trading.
Regarding the dailies, since we have had a higher high and a higher low, would a tentative UTL be reasonable from 3/24 to 4/15? Noting the slope is a good one. erie