Gold FuturesEducation
Microstructural phenomenons: re-positioning
4 real, levels can't be re-positioned, but there's a lil detail.
As explained in "Real levels: positioning and clearing", positioned levels can't switch direction, ie once a level was positioned as support it can't become a resistance, once a level was positioned as resistance it can't become a support. A positioned level can only be cleared with time, price or volume.
However, there are things that do exist and not based on the ways of the system behavior, but rather on some lil details how the sub-systems and the super-system work.
Aye aye, easy, a level can switch directing for a very specific and short period of time, but not due to the principles of how things work, rather by a microstructural reasons. The reason is all of us & common sense. When we scale in near a positioned level, but shortly after it becomes obvious with evidence that a level was consumed/cleared (ie there's no more level anymore), in most occasions there's no reason to take a loss right away, it makes sense to try scaling out at around break-even.
1879 was positioned as support in the end of march 2022, the same time 1788 was discovered as a back level of 1879.
Point 1: we enter @ ~ the level;
Point 2: the level gets definitely proved as a cleared one;
Point 3: we leave at break-even, concentrating the liquidity around 1879 (~ when we've entered);
Point 4: we see the result, a pop.
If we would've dropped much deeper than 1788 (technically said, if we would've contacted another deeper level), that phenomenon would've never occurred (there would've been no1 to scale out at breakeven).
As explained in "Real levels: positioning and clearing", positioned levels can't switch direction, ie once a level was positioned as support it can't become a resistance, once a level was positioned as resistance it can't become a support. A positioned level can only be cleared with time, price or volume.
However, there are things that do exist and not based on the ways of the system behavior, but rather on some lil details how the sub-systems and the super-system work.
Aye aye, easy, a level can switch directing for a very specific and short period of time, but not due to the principles of how things work, rather by a microstructural reasons. The reason is all of us & common sense. When we scale in near a positioned level, but shortly after it becomes obvious with evidence that a level was consumed/cleared (ie there's no more level anymore), in most occasions there's no reason to take a loss right away, it makes sense to try scaling out at around break-even.
1879 was positioned as support in the end of march 2022, the same time 1788 was discovered as a back level of 1879.
Point 1: we enter @ ~ the level;
Point 2: the level gets definitely proved as a cleared one;
Point 3: we leave at break-even, concentrating the liquidity around 1879 (~ when we've entered);
Point 4: we see the result, a pop.
If we would've dropped much deeper than 1788 (technically said, if we would've contacted another deeper level), that phenomenon would've never occurred (there would've been no1 to scale out at breakeven).
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