Slugar: Maybe you need to use DB's 60m chart, nothing more and nothing less. But i could be wrong. For your reference only. Gingo and Niko: It is a good reminder. Thank you.
What I saw were 4 buying waves of increasing intensity, as the slope increased on each successive wave. The last two were definitely at an unsustainable angle upwards. We therefore are looking for consolidation, which has the characteristics of a coil to me in this formation. We started to break out of the coil about 80% of the way through (which I take as a positive sign for accelerated action). The price broke out downwards, taking the higher probability that this is a fake break, I am looking for the reversal upwards, and the upward pattern continuation.
Heroic has the right idea, though even his purple line is too far from price. These lines have to hug price or else they are of little value. There should be another line beginning at 0600 (0800) on 10/10 and tracking price up to the high at 1300 (1500). Plot that and you're closer to being ready to go. Nearly all the difficulties you guys are having with this stem from looking at these charts in hindsight rather than in replay. Most of you are drawing lines that can't exist in real time, so exercises like this are a waste of your time. [/QUOTE] based on above is this what we should be focused on; solid lines trend, dotted S/D at these times stated above
There is no one right way to look at this, but Heroic, niko, yossy, and bigmoose are zeroing on what matters to someone who has to make a decision in just a few minutes.
Cool. From this could I infer that S/D lines from a larger timeframe could be trend lines on a smaller timeframe?
Gringo's chart. What I asked the other day relates to this. What is the min that it takes for the 1st DL to come up. The way I see it is that none of DLs that I see are the same as Gringo's. Why this difference? Even if the 1st 2 DLs are ignored given that the SL is hardly broken, the 3rd DL is still different. I am seeing it after the prices has tested the lows and then moves up.
I only have one pink SL in this chart. The only mini blue DL that's there is a flaw because I took the shot of the chart after I had drawn the SL/DL for the first 2 hours. So some times a bit piece shows up. Unless they are connected properly please disregard them. Your 3rd DL seems valid but there may be issues with the first two DLs. We'll discuss this when we get to the open again with Db. Keep in mind I am prone to making errors as I posted these SL/DL in hindsight. I tried not to look to the right but my judgement could have been compromised. I don't trade intra-day but wanted to help that's why I am trying to explain things on 1-min chart. Now I am beginning to question what other issues I might have with my annotated chart . What is good is that you're paying attention. Gringo
For those who are interested, these charts will provide a visual to what was posted last Friday. If you haven't printed out those posts, or at least the latter one or two which include the entire sequence, I suggest you do so. Unless you never opened a chart until last Friday, you know that the monthly is up, the weekly is up, the daily is up, and if you can tell up from down, you know that the hourly is/was up, unless you began trading at midnight, but that's not the focus of this exercise. By 1500 (all times are EST, regardless of what's on the chart), price had reached 3208 (all prices are +/-; this isn't math class). Why did it stop there? Because sellers ran out of buyers. That's all one needs to know. It then dropped to 3176. Why did it stop there? Because sellers weren't willing to sell for anything less. And that's all one needs to know there. If one had been trading this all night, the DLs that bigmoose drew would have been accurate. However, otherwise they are not necessary. Price is/was nonetheless rising. Or had been. Which brings us to this hinge that so many have drawn. The "hinge" is not really a part of this. Nonetheless, this is not a hinge since it is not "filled with price". This is a range from 3208 to 3176 that resolves itself into a trading range between 3192 (the mean of the range) and 3203 (note how the last bar rejected the bottom reached by the bar five bars previous). It is not crucial that price hold above 3192. But the fact that it has by the time one has opened up the chart is informative. The Dog That Didn't Bark. It has not fallen by now, so . . . The only line that matters, then, and the only one that matters with regard to the open, is the following: You then have to determine exactly what it is you're going to look for when the market opens in a few minutes. How is what you have right in front of you going to help you make a trading decision?
Buyers have been in the ascendancy up until this point. However 3200 is an important level, as evidenced by the fact that it has acted as support previously and is now causing uncertainty for both buyers and sellers, hence a hinge has formed here. At this point we may see either a reversal or a breakout above 3200. So to answer the question. My starting point would be the 3200 level as it's obviously important to someone for some reason. What I would be looking for is evidence of who is winning the battle at this juncture. My first line would be the first push in either direction.