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Washandrinse

The Wash and Rinse To See True Support/ResistanceTrue support and resistance is found in the meat of the move, not at the extreme highs and lows. To find it, Simply draw a zone or box and look for the place that price touches the most, and then pay attention to what happens afterward. In this lesson, I set up a trade plan and show how a Wash and Rinse structure at the pivot of a swing uses the most touches to find true support in a market. I then show how to identify it. The Wash and Rinse has a process that we can follow in real-time. 1. Multi-Pivot Line (MPL) 2. Zoom through the MPL 3. Come back and retest the MPL 4. Zoom back through the MPL the other way What happens in this process, is that buyers are holding some level. Price then busts that level triggering stops and at the same time encouraging shorts to enter. Then price rips back up essentially cleaning the book of orders and showing where the true support is (at least for the time being). Once you can recognize this structure, you can begin making your own observations and use these levels to read a market or begin to build a setup around it. The most important part is to learn to design a plan with objective rules around what you observe. Shane
NASDAQ:RCKTEducation
by ShaneBlankenship
2
ES - S&P 500 - Wash & Rinse, now LongHere comes the Wash & Rinse. I was posting that we will bounce at the Centerline. My timing was off for a couple days. But here it comes: The move today makes sense. First, we had news which where somehow not ultra bad. But the market flushed big, leaving a GAP in the intraday chart (See the screenshot and my tweet). They washed the stops to the downside, and closed the GAP on the upside. If we now close again above the Centerline, I bet that we will see the long awaited bounce. Let's see how this day will end. I only trade super small, because in these markets this is the only way to control risk and be involved if you don't have tens of millions. Stalking Hat On!
CME_MINI:ES1!Long
by Tr8dingN3rd
ES - SP500 Wash & Rinse'em Up & DownThis is how retailers get washed & rinsed. Expanding Pivots (or Swings in higher TF's), can be a killer for your trading account! If you got cleaned today, print this picture and put it on your Monitor! This is one of my most hated and loved patterns. First it leads to losses...sometimes a couple in a row (...yes, I know, very frustrating). But then, when I realize, that this is the ugly W&R pattern, crawling out a stinky toilet, I sit on my But and wait for P4 to go in very heavy, to fart as hard as I can on the head of the entity who ever is producing this sh*t. §8-)~ Stake & Lobster Baby! Thanks W&R, I hate you, but I love you. #washAndRinse #bringItOn #smokingProfit
CME_MINI:MES1!Short
by Tr8dingN3rd
New lower low in USDCAD marks a need for re-evaluationAfter the large up move from A to B price has started to consolidate. Rather than find support at the lows at C, price has blown through those lows and the .382 retracement. Median line theory tells us that if price passes through one line of a median set, it will likely reach the other. Since there seems to be no end in sight to the down move, since we are seeing nothing but bearish bars, we need to wait for evidence before we know what to do next. If we form some kind of consolidation sideways and stop printing red bar after red bar, we can think about getting long. The idea being that the lows at C had many stops that needed to be cleared out of the market before price could go higher. This is a classic wash and rinse type pattern. If price does not consolidate or show some bullish bars, I don't see much of anything to do. If weakness continues all the way down to the lower median line around D, then looking for a small scalp from D to E might be possible, with the proper evidence and a small stop to provide a decent risk to reward. If that trade isn't viable, (bad stop or bad risk to reward...or no evidence of a reason to get long) then waiting to shot up near the old highs somewhere around the line at E would be the next opportunity. Patience is key when things get sloppy. Let's see how things shake out before we get involved again.
by iTradingForex
4