What is a support? A memory of price being moved by buying.
The materialization of a support / resistance is price slipping off the trail counter the direction.
Although a reversal down may start with a lower high, what I am monitoring for is a lower low – and on a 5-minute chart.
The idea is that if these are holdings, the seller – or someone else – may step in again to defend the position.
Here’s my automatized version.
I invented different colors for those buys that occur below S1 support and not close enough to the lower limit.
Olive Green – not the best location.
Green – apparently when green overlaps Green, it becomes blue. Gotta love computer logic.
The Million Dollar question today is how far this Wave 5 up going to get?
Downside targets are easy to figure at 50% and 80% length of the range.
I do have a problem with picturing a break here.
I already showed you that someone went short at 1.1380 & 1.1360
Dip buying isn’t promoted here because of those legs spiking through Mr. Maroon.
There is energy to make a beat of the current exhaustion move up, yes – but the last Exhaustion -> Beat -> Break sequence hasn’t been completed yet.
I’m of the belief, that this Wave 5 up would remain a lower high.
The last higher low on the downside went like this:
Exhaustion – Beat – Exhaustion
No break after the first beat, and later no beat followed the exhaustion either.
The break of the beat usually happens within 4-7x 4 hours. There has been 14x 4 hours since the beat was made.