| lesser - 10/1/2015 14:11 I am new at this lingo so please help me. I read what you write as trading above the gap before lowering would be bad for corn prices and confirm failure and then you state that it would trade above 5.50. So I must be missing a definition on your wording. If it goes above how can it be a failure, but in turn go above 5.50. Sorry for the ignorance. I also read it as if it goes above the gap to sell some because it might not get back there anytime soon??? Hi lesser, A failure is essentially price failing to do what it should. A lower high should make a lower low for example. When price fails to do something, it has stored energy that gets released, and it leads to big rallies or selloffs. Trading to the gap first would be bullish, because price's job is to make a new swing low. The failure to do so, would give us the energy to get to the those higher targets. If it goes above the gap, IMHO, wait for new highs at minimum. Several level of sellers will get taken out to get to the gap...IMHO, trading at the gap would confirm the failure. Hope that helps. |
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