Joe Ross - How To Spot A Trend.pdf - Giełda książki fajna kolekcja - sylwian44

THE LAW OF CHARTS

WITH INFORMATION NOT SHOWN IN OUR PREVIOUS COURSE MANUALS

1-2-3 HIGHS AND LOWS

A typical 1-2-3 high is formed at the end of an up-

trending market. Typically, prices will make a final

high (1), proceed downward to point (2) where an

upward correction begins; then proceed upward to a

point where they resume a downward movement,

thereby creating the pivot (3). There can be more than

one bar in the movement from point 1 to point 2, and

again from point 2 to point 3. There must be a full

correction before points 2 or 3 can be defined.

A number 1 high is created when a previous up-move has ended and

prices have begun to move down.

The number 1 point is identified as the last bar to have made a new

high in the most recent up-leg of the latest swing.

The number 2 point of a 1-2-3 high is created when a full correction

takes place. Full correction means that as prices move up from the

potential number 2 point , there must be a single bar that makes both

a higher high and a higher low than the preceding bar or a

combination of up to three bars creating both the higher high and

the higher low. The higher high and the higher low may occur in any

order. Subsequent to three bars we have congestion. Congestion

will be explained in depth later on in the course. It is possible for both

the number 1 and number 2 points to occur on the same bar.

The number 3 point of a 1-2-3 high is created when a full correction

takes place. A full correction means that as prices move down from

the potential number 3 point, there must be at least a single bar, but

not more than two bars that form a lower low and a lower high than

the preceding bar. It is possible for both the number 2 and number 3

points to occur on the same bar.

Now, let’s look at a 1-2-3 low.

A typical 1-2-3 low is formed at the end of an down-

trending market. Typically, prices will make a final low

(1); proceed upward to point (2) where an downward

correction begins; then proceed downward to a point

where they resume an upward movement, thereby

creating the pivot (3). There can be more than one bar

in the movement from point 1 to point 2, and again

from point 2 to point 3. There must be a full correction

before points 2 or 3 can be defined.

A number 1 low is created when a previous down-move has ended

and prices have begun to move up. The number 1 point is identified

as the last bar to have made a new low in the most recent down-leg

of the latest swing.

The number 2 point of a 1-2-3 low is created when a full correction

takes place. Full correction means that as prices move down from

the potential number 2 point, there must be a single bar that makes

both a lower high and a lower low than the preceding bar, or a

combination of up to three bars creating both the lower high and the

lower low. The lower high and the lower low may occur in any order.

Subsequent to three bars we have congestion. It is possible for both

the number 1 and number 2 points to occur on the same bar.

The number 3 point of a 1-2-3 low exists when a full correction takes

place. A full correction means that as prices move up from the

potential number 3 point, there must be at least a single bar, but not

more than two bars, that form a higher low and a higher high than the

preceding bar. It is possible for both the number 2 and number 3

points to occur on the same bar.

The entire 1-2-3 high or low is nullified when any price bar moves

prices equal to or beyond the number 1 point.

Joe Ross - How To Spot A Trend.pdf

Plik z chomika:

Inne pliki z tego folderu:

Inne foldery tego chomika: