Probability of a midpoint projecting a valid future reversal point is increased if multiple midpoints show confluence at the same zone. Case in point, here the Swing low A, followed by midpoint E (breakout midpoint), projected a swing high at F.
However, there was a smaller swing along the way which also hinted at swing high F: Swing high B, followed by midpoint C (split between the two strongest down bars in that swing) suggested a swing low at point D. This was a valid buy area on it's own. But better yet, the 1.618 extension of swing B-C-D gave additional credibility to the expected swing high of swing A-E-F.
When multiple different swings line up and point to similar reversal zones such as here, the market can be considered to be in a very harmonious state and such setups have better odds of resulting in a winning trade.
However, there was a smaller swing along the way which also hinted at swing high F: Swing high B, followed by midpoint C (split between the two strongest down bars in that swing) suggested a swing low at point D. This was a valid buy area on it's own. But better yet, the 1.618 extension of swing B-C-D gave additional credibility to the expected swing high of swing A-E-F.
When multiple different swings line up and point to similar reversal zones such as here, the market can be considered to be in a very harmonious state and such setups have better odds of resulting in a winning trade.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.