Trend Reactionary Numbers Natural Contraction & ExpansionThrough trail and error and years of experimenting I discovered that Price movements determine FUTURE Price movements. Markets have a dominate tendency to exhibit support and resistance at price points defined by percentage increases and declines of past Peak to Trough movements and vice versa. I was able to approximate the ideal ratio values to determine these future points of support and resistance . These levels have become my propriety Trend Reactionary Numbers that through natural market movements need to be adjusted. You will ascertain with the help of my TRNS that market movements assemble themselves into a few conspicuous types of action that have a certain orderliness. This orderliness is the price expression of human nature, or market psychology it is where we get to watch what drives traders to do what they do. It is a picture of the most powerful human habits. The habits of Fear, Hope and Greed are all charted out for us to observe and take advantage of.
Fibonacciwave
Hook 11 Potential Set Up Whenever a market has a close on the day{bar} before a Rally that is less than the close 4 bars before, and the subsequent rally close is greater than all 11 highs before it that is a signal of a good breakout upward and a potential trend change to higher levels. You should employ your edge to buy the market at the best possible levels. Always use a prudent stop loss as protection of capital is the number one rule!
For a Downward breakout
Whenever a market has a close on the day{bar} before a Reaction that is greater than the close 4 bars before, and the subsequent decline close is less than all 11 lows before it that is a signal of a good breakout Downward and a potential trend change to lower levels.
Trend Reactionary Levels Trend Reactionary Numbers (TRNs) are powerful Support and Resistance Zones that will be respected by the Markets. These Numbers are the outcome of 30 years of Trading Experience with over 15+ years on Wall Street. I worked for Institutions like Deutsche Bank, BNA, CRT and DG Bank in New York.
They are calculated by a proprietary formula and other variables which result in Key Market Reversal Points. As the Price of the Financial Instrument Expands or Contracts the TRNs will be adjusted to the new exponential Average True Range.