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

Isn't that a midpoint though, and we avoid trading at midpoints?
Extremes are where we look for trades?

 

Please read what has been posted since Friday morning.

 

OK got it, were just sticking to lines for now.

 

Either it will break down thru the line, or bounce off?

Like many, I keep working at (or letting go of) complicating things. I had other lines, but not your 'dog didn't bark' one. Delight to see it tho, once you point it out and why.

 

DB please tell me the difference bewteen my DL and your DL
in your very first post .

http://elitetrader.com/vb/showthread.php?threadid=278341

Pic. 3

also why should i draw in demandlines wich are of no meaning
anymore ? ie. broken/obsolete ? .. anyone can see that the
momentum tappert off , based on. DL breaks.. (advance slows
down) and that price is pausing at this level , wich means the
only thing one should do is wait till this small range is cleared .

why i kept the DL is simple to judge how far the pause will go and
if the market gets weaker at this level , where again a DL break
just tells that story.. ie how /if thepace of an advance slackens..
and finally a shift from demand to supply emerges or not

ty

 

Why? Is it because it is the one closest to price at the time of the analysis?

 

To me the only thing to look for at the open were longs simply because since 5:00 cst there were a series of higher highs and higher lows

 

I believe this level is important because resistance has now become support

 

Where in this chart has 3192 offered any sort of resistance [?]

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I am also interested in people's thoughts about niko's question. I feel like I am making a stab in the dark, but perhaps it's relevance comes from the fact that it accurately represents both of the opposing forces acting upon price in the present time of the chart.

Failure to breach 3192 to the downside is an indication of selling pressure's inability to continue the [relatively] short-term momentum they've gained on the demand over the past eighteen hours.

Likewise, falling through the short-term support at 3192 signals the continued degradation of the demand that we've been noting as we fan our demand lines multiple times. Of course, falling through 3192 doesn't seem like it would be the complete death of the demand that's shown its force over the past two days, but it would be an indication that the supply we can see starting to form is a serious movement rather than a small hesitation in demand.

 

The the mean of the range is acting like a line in the sand.

You would look for either sellers to stop selling and price heading up towards the supply line, or they keep selling and price goes to the demand line