Friday, June 21, 2013

Tactical

This is what I meant by the last post, typically first resistance/support intraday is the former close, then high/low and open.

 You can see a faint light blue line at yesterday's close, that's first resistance, it's not uncommon for price to back off that area, it use to be for real reasons of support and demand, now it seems much more psychological and dogmatic as that is what technical traders expect so they can be lead around by the nose.

I might as well point it out before I get an email (or maybe I already did), there's always a possibility of forming an inverse H&S base, this is actually a complex version with 2 sets of shoulders and essentially two heads.

I can't guess at the probability of such right now until/unless I see charts suggesting that as a probability, as of now the 1 min chart  which is the fastest, easiest to move, didn't even stutter step on the initial pullback from the resistance area.

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