Friction: When Market is not offering trading opportunity
Updated
When Market is not offering trading opportunities ? Let Newton show us the way.
Friction:
After Spending Great deal of energy prices are back into transition zone and Friction is eating up the downward momentum of downside leg. Prices are conserving energy for next move up or down. If slope is taken out motion is downward, otherwise it is upside as prices have spent considerable time in Friction zone.
Tug of War:
As depicted in chart Sellers able to push prices lower in transition zone. Buyers too were holding the position and now moving prices upside. Prices are in Equilibirium.
Long initiate at reaction line for target at upper median line (in red); Ideas invalid if slope is taken out, in that case target is lower trendline (in red).
DISCLAIMER:
Trading in the stocks market or futures markets is one of the riskiest forms of investments available in the financial markets and suitable for sophisticated individuals and institutions. The possibility exists that you could sustain a substantial loss of funds and therefore you should not invest money that you cannot afford to lose. Nothing in this analysis is a recommendation to buy or sell stocks or futures and I shall not be liable for any loss or damage, including without limitation, any loss of profit, which may arise directly or indirectly from the use of this analysis or reliance on such information. Consult your financial advisor prior to investing is stock market.
This is one person’s experience, your experience may differ. Past perfomance is not gaurantee of future gains.
Friction:
After Spending Great deal of energy prices are back into transition zone and Friction is eating up the downward momentum of downside leg. Prices are conserving energy for next move up or down. If slope is taken out motion is downward, otherwise it is upside as prices have spent considerable time in Friction zone.
Tug of War:
As depicted in chart Sellers able to push prices lower in transition zone. Buyers too were holding the position and now moving prices upside. Prices are in Equilibirium.
Long initiate at reaction line for target at upper median line (in red); Ideas invalid if slope is taken out, in that case target is lower trendline (in red).
DISCLAIMER:
Trading in the stocks market or futures markets is one of the riskiest forms of investments available in the financial markets and suitable for sophisticated individuals and institutions. The possibility exists that you could sustain a substantial loss of funds and therefore you should not invest money that you cannot afford to lose. Nothing in this analysis is a recommendation to buy or sell stocks or futures and I shall not be liable for any loss or damage, including without limitation, any loss of profit, which may arise directly or indirectly from the use of this analysis or reliance on such information. Consult your financial advisor prior to investing is stock market.
This is one person’s experience, your experience may differ. Past perfomance is not gaurantee of future gains.
Note
prices are back...great separation bar formed today...will update idea after some time.Trade closed: stop reached
Slope taken out.
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