Doctor Andrew has mentioned a reliable method which is used to find the area where price get a reaction from the prevailing trend. Although the stock is falling vertically and have already given 33% in just 6 bar and the market is also in turmoil but still we can test its reliability on it. Please learn as it can improve the trading significantly. step by step explanation is as under
First we draw a Multi Pivot Line : A line drawn across 3 or more pivots without touching prices in between. The next step is to locate a previous low or high pivot point to use for drawing an action line. Next, a parallel line was drawn to the right of the C/L, Notice that it is the same distance from the C/L as the corresponding Action line. The Law of Physics stated by Newton that Action and Reaction are equal and opposite is applied and it works wonderfully.
Wow what a reversal showed the technique, Salute to Dr Andrews.
Einstein15
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Wondering if it works on smaller time frames. 30-mins lets see
praveen.bhatiya
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@Einstein15, It works in all time frames, Hope it works.
Einstein15
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How can one contemplate a huge fall like that? TECHM, D,-->
Einstein15
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@Einstein15, uhh plz ignore TechM. The previous swings are not lower than the breakout one.
praveen.bhatiya
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@Einstein15, Please don't expect the price to reach Center Line always. Although it acts like a magnet and attracts price towards but the tool is more useful to get a price reaction zone and be used for booking profit a running long. Hope it helps. IF you could find a centerline passing thru a gap that is more reliable try to find that.
Einstein15
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@Praveen.bhatiya, Thank you. Yes that info will help a lot..
..and gaps, okay.
Einstein15
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and this, DHFL. Plz Ignore the other lines n drawings
praveen.bhatiya
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@Einstein15, I am so happy that at least one person got interested and have shown interest in learning. I am little busy but would try to see it by today.
Einstein15
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@Praveen.bhatiya, Pleasure is all mine. Always happy to learn the rare_gems that you bring forth.It has become your stereotype i think - To bring something new to the table :)
Finding more ha,. Either i am doing something wrong or that this is commonly occuring setup.
TATAMETALI--