. Then you manage the trade draw your demand line on the 1st retracement and sit tight until a swing low is taken out or you exit if the last swing low is taken out!
Sorry, but I don't know what you're referring to. The lower high is the first retracement after the break of the demand line, therefore a short. After this is taken, a supply line can be drawn, a lower low is made, and the supply line is broken offering an opportunity for a long where he stated.
I made a mistake in not paying attention to what I was looking at. When I re-read it couldn't get my head around what I was saying. I'll re-post soon. Edit: Agree with long on 11 after SL break, RET, and up move. Edit2: Where is the short exiting? Isn't the short exiting first and then going long or exit and reversal of short is handled at the same location? Considering we have a LL the price is showing weakness until the SL is breached. Now this breach doesn't mean we're going up, it's the RET and the subsequent non continuation of price down and in fact it turning up that tells us the downward move is jeopardized. At least that's how I am looking at it.
That's a point usually missed in metaphysical discussions. One couldn't take the first long if he were short unless he were trading two accounts. In the real world, the second retracement would be the long op.
Here's the chart. This shows the short but where is the short exiting? I have shown the location where the short might exit. Is the short exited even before that black dot? Edit: Thank you Db. I am feeling normal again
Yes, it was attributed to me in error, which is another reason I'd rather forget about the 50% business and focus on demand and supply.
I typically would not take a short from a steeper line break if there was another line close, as I would expect some type of reaction on that line. I guess this would just be a risk mgmt. element that I try to keep in mind. DB, is this one of those things I do that just clutters up a simple method, without much benefit?