Son of If You Can Draw a Straight Line . . .

When a line like that is broken and the imbalance has shifted toward sellers, one wants to know by how much. Only then can he decide what to do about this turn of events.

How does he determine the degree to which the imbalance has shifted toward sellers? And don't get fancy. Look to the obvious.

 

Did it break at prior support or resistance?...If not, it is very likely the trend is intact.

 

We're not doing support and resistance anymore. Too difficult.

 

Price would keep dropping if sellers are in charge or move sideways if not so?

 

Yep, either because they're overwhelming buyers or buyers aren't interested. Whichever, price will drop. So one watches and waits to see how far price drops. What else does he look for in the meantime?

 

I would look for a higher high if that does not happen then it will mean that buyers are no longer un control. Hence a lower high or a double top.

 

We're past the answer to that question, but this isn't the answer anyway. Price is falling. Why would you look for a higher high?

 

Yep, I posted late, but my interest in the higher high is because as price is still above 50% i am still looking for reasons to stay long, but i am anticipating again.

 

It's not uncommon for struggling traders to have a vision of what they expect to see and translate that into what they're seeing, even though it has not yet happened. This is a chief reason why losers hang onto their losses for so long. They just don't see them for what they are.

 

Edit: will the last swing low hold.

Damn tablet. Erased the original post by mistake.

So, i would look for the first ret, then if the sellers are in control they will break through the last siwng low.