AUDCAD Support and Resistance
Updated
Support and Resistance lines need not be Horizontal only. Neither need they be Parallel.
The SIMPLEST way to demonstrate a relationship between TWO POINTS is to draw a straight line between them. Horizontal S&R Lines demonstrate common Highs and Lows, and Opens and Closes. This is meaningful because Price tends to respect these same lines again and again.
Another important relationship is between each mini-trend up or down, or at an angle, and the Price each trend points to, which tends to be a swing high or low. So when examining the following chart, consider how much information AND VERIFICATION each mini-trend gives to us.
The SIMPLEST way to demonstrate a relationship between TWO POINTS is to draw a straight line between them. Horizontal S&R Lines demonstrate common Highs and Lows, and Opens and Closes. This is meaningful because Price tends to respect these same lines again and again.
Another important relationship is between each mini-trend up or down, or at an angle, and the Price each trend points to, which tends to be a swing high or low. So when examining the following chart, consider how much information AND VERIFICATION each mini-trend gives to us.
Note
Note
ALL the red lines ARE Support & Resistance lines too. Consider how well these are respected throughout TIME.Note
Lows project the high, and highs project the low. That's just how it works.Note
I never take the target DATE as seriously as the Target Price, and the Traget DATE tends to be projected early. The reason for this is the compacted time between each candle, and projected forward the focal point may vary by days. It tends to project the target date early. Nevertheless; this one seems like it will be a FAST move down once it touches the short term TOP. I am using a Limit Order to get in just below the projected top, and to get out just before the bottom in a few days.Note
On the 240 minute 4 hour chart, a close up.
Note
A major convergence is coming at around 4:10 pm EST, and I expect it to drop like a rock (as opposed to flying like a rocket) but it is a Friday, so who knows?Time shall tell, but I'm short 300,000.
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