Understanding The Range #11

In the world of convenience, 11 comes after 7.

Over the rainbow, over the bought.

An example of a 100/200 failure above. 100 meaning an extra Range distance down, the 200s are automatically plotted 2x Range distances made by previous ranges (within the sample).

Price comes back to the Overbought level of the range that gets drawn in the future.

Another example of a 100/200 failure from a couple of days ago. Not quite as clean, but ultimately did the same thing – failed back to a future overbought level (of the 2nd consolidation range). Look for the -100 on the bottom left and the 80 up on the right.

The fun part is that a failure does not change the market ditection, but bucks the trend as long as the lasso can reach.

Now, what about this Malcolm in the Middle?

This was a liquidity grab, look at the sequence at the bottom: there was a Zero print followed by a buy at the future oversold level. It resulted in an ABC move printing 180 (overbought of the extension Range) on A and 180 on C.

On the chart you see a lower low being made, but relative to the Range, this second leg fell shy by 20%. An impulse bottom.

Where was a Left Shoulder/Butt Cheek at all? I could not see one.

If you want this to be a bottom and an IHS, that would come handy. You want bottoms to be spankable. You want the power of love to be overwhelming.