Of course when I say line i mean Median or Reaction and usually the latter but it would be the same for a simple trend line.
Here is what i am talking about using the Eur Stoxx 50 March 2013 contract CFD chart on MT4.
The weekly, daily,and 240 min charts: One large simple fork shown in black ( forget the other lines). It shows price within a whisker of the centre line in all three charts below. OK?
Now below heres the 60 min or 1 hr
30 min below
Now the 15 min below
Now I am going to manually add over the lines visible in 60,30 & 15 min charts and here are the super imposed lines displayed in various time frames
Now there is still no CL touch except in the 30 and 60 min charts (and the CL failure rule still applies) but not only has the location of the black CL in the 60 and 30 min chart shown effective correlation with price but also so will ( when touched) the 240 min and daily locations. The 15 and 240 min charts ( in this case) share roughly the same location 2719 and 2723 respectively.
This problem (and it is a problem) is present on all platforms i have used. Televent( Prophet), MT4 &5, Esignal and Ensign windows. Question: How can a line have more than one location in multipel time frames and is this purely to do with our system of data presentation ( here jap candles and simple auto scaling of X and Y axis) of which the market has no concept of ?
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