We are in a LONG which needs to BREAK THE NEXT SHORT
This post will show then a completed short, which I will remove and then our next MM short:
Two Potential Shorts
In this chart, we have two potential shorts, and our PREFERRED SHORT is what we call, "all the way, halfway back short" which is the BIGGER RANGE choice shown:
54.08 drawn down to 52.24 (our swing low, as I suggested it was 52.22 but it was actually 52.24, one tick below a century level, 52.25).
AGAIN, notice the relationship of price to these rounded Century Levels, such as .25, .50 and .75 and .00..
BUT< they tickle price past these levels ALWAYS, so we refer to price moving down and then reversing as "resolving" the price action, which actually means we have RESOLVED THE QUESTION or answered the question: will that C-LEVEL HOLD OR NOT?
There is a second potential reversal level, 52.85 which is also shown.
WHICH ONE WILL HOLD? We resolve that by drawing up OPPOSING MM's much like we are with our long which is actually opposing a MAJOR SHORT under way since last year, 74.95 drawn down to 26.05 which I mention at least 3-4 times a week to which we must be attuned!
SO, LONG or SHORT??
CHOOSE A SIDE.
I see a VERY GOOD BID taking price up to our our big test: 53.16 or the RANGE drawn from 54.08 down to 52.24.
That yellow line is far to the right and as MM traders, we are encouraged by this as this could be a very good short play...so long as it HOLDS.
And that leaves the break we are approaching, 52.99 (PINK LINE) or will 53.38 be broken?
Dave
Two Potential Shorts
In this chart, we have two potential shorts, and our PREFERRED SHORT is what we call, "all the way, halfway back short" which is the BIGGER RANGE choice shown:
54.08 drawn down to 52.24 (our swing low, as I suggested it was 52.22 but it was actually 52.24, one tick below a century level, 52.25).
AGAIN, notice the relationship of price to these rounded Century Levels, such as .25, .50 and .75 and .00..
BUT< they tickle price past these levels ALWAYS, so we refer to price moving down and then reversing as "resolving" the price action, which actually means we have RESOLVED THE QUESTION or answered the question: will that C-LEVEL HOLD OR NOT?
There is a second potential reversal level, 52.85 which is also shown.
WHICH ONE WILL HOLD? We resolve that by drawing up OPPOSING MM's much like we are with our long which is actually opposing a MAJOR SHORT under way since last year, 74.95 drawn down to 26.05 which I mention at least 3-4 times a week to which we must be attuned!
SO, LONG or SHORT??
CHOOSE A SIDE.
I see a VERY GOOD BID taking price up to our our big test: 53.16 or the RANGE drawn from 54.08 down to 52.24.
That yellow line is far to the right and as MM traders, we are encouraged by this as this could be a very good short play...so long as it HOLDS.
And that leaves the break we are approaching, 52.99 (PINK LINE) or will 53.38 be broken?
Dave
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