There are clear levels of significance. Every time the stock has hit around the $2.00 level a large group of people have been buying it.
This gives us a higher probability to enter a long trade at these levels.
A double bottom is printed as the large investors/traders who saw good value at the $7.00 level see this stock as a bargain.
The Base Line and Conversion Line begin to twist as the amount of cash entering and exiting the market balances and prepares for the next trend to unravel.
Once a significant price level has been identified in a market, we can begin to scan for an entry point on a lower to higher timeframe that is converging.
-The Base and Conversion lines confirm a change in a trend by calculating its midpoints.
-The these two lines plot the midpoints of the last 5 days and the last 13 days.
-As these two midpoints meet and...
Downtrend fractals are showing from the 5 minute and up into the 15 minute timeframes. These fractals are a reflection and in theory identical to its larger self.
When these different timeframes converge into each other you increase the probabilities of the larger shape continuing its directional pattern.
You have the option to build into these positions and...
The 1 hour candles are showing an uptrend with support at the $0.51 level. The 2 hour candles are also showing support at the $0.58 level. We can start to see convergence from the 1 hour to the 2 hour timeframe as the uptrend consolidates at higher levels.
