Sunday, 3 February 2013

USDX... continued plus mirror lines

Mirror lines are a phenomena or aberration observed by me on all charting platforms i have used since 2005 Esignal (as seen here) and MT4 /MT5 and Ensign Windows and limited use of Televent Prophet and its taken me many years to get my head round it but I publish these charts ahead of Monday 4th Febs trading session to prove a point:
Please view Fridays post wich was pre Non Farm Payroll data
Now look at the charts as of the friday close/weekend.
 Here below is the detail of the bounce off the RL at 79.00 in the 60  min TF.

Now I drop down to the 15 min TF and the lower supporting RL has moved position to 79.40. This is the same in log or arith scaling and in all the above platforms but can vary as to what TF it is observed sometimes 5 min or 10 min as opposed to 15, 30 and depends on factors such as the time frame the line emanates from
 I manually return to the 60 min and manually insert a small line directly on the supporting  RL at 79.00 and then return to the 15 min chart
 Here it is below if i switch back to 60 min.... see it in scarlet just a whisker under the original position?

If you watch this market tomorrow you will see price action will find this line a resisting line an you will see visible proof. In fact you can already see supp/res above and below previously on 30th & 31/ Feb.
I have observed that for every line (ML/RL) you will find a mirror line equidistant either side of the original RL. LINK to another recent example i posted
The applications of such information is obvious and I suggest you back test this on a single simple fork in any market of your choice. Draw the fork in daily or above ( in order to have a horizontal line when you drop down to low TF's) and then superimpose a different coloured line on top of the line location in each TF you drop until you get down to 5min. You will end up with enhanced market structure and especially useful in a sideways mkt.

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