Thursday, March 26, 2009

Consolidation Range Whipsaws & Rotation

After reading Frank Dilernia's concept of Range Bar and Rotation of price the picture of price vibration along the Support & Resistance levels gets more clear.

Here is a Reminder I'd like to leave for future notice as in choppy, rangebound markets this patterns are always the same.

Any consolidation needs a break to end the range trading and to free the price to move in a certain direction -- while the Support and Resistance levels are visible on the chart, the tricky part is actually the EXIT out of the consolidation.

The chart shows the obvious points where there is a fake breakout, followed by a ROTATION to the Opposite side of the range and most probably continuation of the breakout of the opposite range border..

No comments:

Post a Comment