the rationale for the upper blue line is as follows:
1)it appears to be acting a support/resistance
2) After the first two times it intersects price, it delineates the massive double top.
3)It's importance, for whatever reason, was confirmed when the extrapolated line acted as resistance to the upward moving price in JULY 09.
4) therefore, looking for a possible triangle range between the lower blue and upper blue, with upper blue as resistance.
5) alternatively, upper blue line can be seen as acting as a mirror i.e. the massive double top is reflected in the upper blue line and comes out the other side as what if it breaks out to the upside will be a cup and handle type double bottom...
I do not see the rationale for the upper blue line.
ReplyDeleteI was thinking take the ruler and draw a line across at 3000 now that the restocking is over. But I am a bit of a simpleton.
ReplyDeletethe rationale for the upper blue line is as follows:
ReplyDelete1)it appears to be acting a support/resistance
2) After the first two times it intersects price, it delineates the massive double top.
3)It's importance, for whatever reason, was confirmed when the extrapolated line acted as resistance to the upward moving price in JULY 09.
4) therefore, looking for a possible triangle range between the lower blue and upper blue, with upper blue as resistance.
5) alternatively, upper blue line can be seen as acting as a mirror i.e. the massive double top is reflected in the upper blue line and comes out the other side as what if it breaks out to the upside will be a cup and handle type double bottom...
@ LB
ReplyDeleteI would place a dashed mid-line throught the blue triangle dividing it into two halfs. The mi-lind would be resistance now...
I'm just learning this thing and it's seems quite simple, but in for a penny, in for a pound, you know
ReplyDelete