Bobby's homework assignment 2

12. 14. 22 Let me see if I can clarify I awkward video: I use range boxes to trade. Last week oil traded below the upper range box and went considerably lower. this is bearish and I would expect the market to trade to the bottom of the range box, but it didn't. At this move lower was so significant that when the market traded higher yesterday and tested the top-of-the-range box, it made complete sense to me why would move lower. However, the market came to a support level and a double bottom and reversed, and not only did it reverse, it went significantly into the upper range box. Generally, I would think the Market's going to go higher now that it's in the upper box, but it has such a significant move lower, I'm not so sure about this despite the fact that's a reversal that lead the market from the low into the upper range box is very bullish. Support resistance line is not a structural relationship...But the Dynamics of it are important because the buyers and sellers will frequently battle that line, so it's not structure but it's a significant battle zone and that makes it a very dangerous Ariat to make a trade decision unless you're very careful. If you can get on the right side Eva support resistance line, and trade in that direction, this is the kind of setup that can make you a significant amount of money, and that's why it's so important even though it is not technically structure. From my point of view, I lost sight of that and no damage was really done if I had been Trading the smaller time frame, but generally when the market comes to a support resistance line, I'm geared up for the battle and I expect it may take some time before I'm willing to make the decision because I know the buyers and sellers Are more likely than not to battle around that line. Today, once it was clear despite Corrections lower, that's the market was not going to trade back into the lower range box, I would say that the probability is that this market despite some minor Corrections lower, it's probably going to trade higher since the chart shows there's very little resistance to the market moves a couple of points higher. (I did not state this correctly in the video because I frequently abused the words ' Support and Resistance." Sorry about that. the other important aspect of this video, in my opinion, is that you can take in terms of ranges early when a market makes a new high, and then the next bar move slower to the support, and we could have used these patterns effectively on both days. You don't necessarily have to draw all the boxes, but that reversal pattern is helpful to visualize as long as you keep it in mind.

ScottBogatin

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ScottBogatin