[quote=“cator, post:1233, topic:71504”]As an example, if an instrument has (temporarily?) exhausted & is slipping from highs/moving off lows but the structure isn’t violating prior key session levels, the filter will pitch it straight onto the A list from off the radar well before the next potential breakout level comes into view.
Often that can be a week or half a week ahead of when most participants would generally begin to place their bets.
And expanding that a little further, it would for instance read as current week-prior week.
It could also equate to current month-prior month, but that would probably be too spicy for most of the forums appetites.
For those with a much shorter term view of proceedings the next level down would be current day-prior day.
Looking back, the key current/prior weekly levels have triggered potential pyramid stakes into continuation positions off those pullbacks early friday on spx & ftse instead of earlier today. The reason being there were no daily closes underneath current weekly lows.
Same deal on nzd v/s cad & yen.
It clearly tipped the day level group out, but similar generic patterns apply to them just on a smaller frame of reference.
That ties in with their many references to objective driven decisions. You absolutely have to have those nailed down prior to deciding how & why you’re intending to get involved. If not you’re constantly second guessing, moving stops back & forth & getting shaken out of positions unnecessarily due to stress.
One of the other big confirmers which they’ve reminded readers of numerous times is the fact most retailers love picking tops & bottoms & that fact is always mirrored in the long/short positional weightings constantly monitored by brokers.
Usually when pullbacks from either fresh highs/lows or intra-week highs/lows are in progress, you’ll notice a considerable uptick of clients piling in on contra-trend positions. These weighting percentages can sometimes spike up into the high 70’s/80’s, which is the perfect time to be triggering bets back into the dominant flow of the instrument & catching them offside.
As they begin rapidly cashing out their bets or getting liquidated via their stops, it sweeps the momentum back in the original direction, & the one in which you’ve earlier either legged back into or had a pyramid stake triggered.