I think my last post is clearer regarding this issue. I am posting the thick chart of what I saw, I am not crazy
Agree, but given that we are focusing now on lines and RETs (I hope I did not miss any memo saying otherwise), the thing to do is to look for a RET. If the RET is not a RET price will go above the LSH, if it is then a short order will be filled. Edit: This conversation is way to interesting, but I really have to be somewhere in about an hour, so I have to leave, not without pain. As soon as I am back I will READ what has been written and post again,
I'm posting a series of charts so that everybody is on the same page. I'm not especially interested in what each individual's charting program shows. The purpose of the exercise is to explore the details of how to trade by understanding the demand/supply balance. It's not about mechanical setups or stops or how many contracts or therapy.
I apologize, but you've lost me here. I don't understand what you are trying to say. --- To clarify my own post, if the use of my term mid-point is what gave you pause, I was merely referring to mid-point as the 50% mark of the up-move which can be monitored as a general rule of thumb for gauging the strength of a pull-back after the initial demand line is broken, as is demonstrated on the first page of the thread.
Yes, specifically my current thought process regarding the last chart of the series in which the steeper demand line of the two has just been broken.
All right. Next. "0950: Price makes a higher high. What does one do now?" Feel free to draw your own lines if you need to.
Sure, just posted that because my previous post caused a lot of confusion. From now on i will stick to the posted charts.
Another demand line down, but still not seeing any convincing evidence of serious selling pressure gaining on the buyers. Our initial demand line [purple] from the first swing high about 3198 and it's minor RET is currently being tested, and the line which can be drawn from before the open [black] isn't even close to being touched, along with price still being well above the 50% mark of the complete up-move from our entry onward. Still watching intently for a strong signal that would pose a valid threat to our long position. -- On a side note, you've mentioned several times that demand lines become less relevant when price starts to get away from them. I included the first black demand line on the chart because it is still something that factors into my thought process, but I am unsure if I should be phasing lines like that out of my thought process completely, or just mentally noting that they aren't as important to the current price action as the active demand lines are.