Saturday 7 August 2010

€$...Reaction line grid on 1 minute TF





The top two charts show price action yesterday and illustrate a high probability short trade setup. We have a double-top chart pattern,plus we have a LMLP from a higher TF median line set which price has been drawn since 4 August plus we have a reaction line from another early July ML set that price is still moving in-.... both the RL & UMLP are at the same price level.
Then we have the indicators shown in the top RHS chart with over/under divergence on the stochastics and also reg divg in the Maccyd plus we also have price just having made an extended up move.
The bottom two charts show my own interpretation of reaction lines which you can read here.
both of these charts show price moving up and down the reaction/warning line grid (that come from the controlling swing) like 'snakes & ladders'.




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