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South Central Iowa | Well, I think you are so I will reply. I agree markets go to resistance. They then break resistance or pullback (rest). When it does break through or break down it encounters new resistance in which ever direction it goes and eventually stops, and rests (pullback). You are saying exactly what I am saying Palmtopper. I used the word wedge which is not necessarily correct, that is just what I like to call all ranges, when a high and low are formed. All markets are ranges and range bound. At a maximum extent for the current year you can say we are currently range bound between $12.08 and $8.56. There is a high and low for everything. The resistance is always a line. The wedges are always lines. When they are broken in one direction repetitively, it forms channels. When it is breaks one side but not the other and does not go as high or low the next time, it forms triangles. But over and over again all of this resistance is a high or a low that forms one end of a wedge, triangle, channel, pennant, flag, etc.
There are lots of different ways to trade and lots of different opinions. I'd like to see your charts and see what you think. But my system works well for me and I am comfortable with it. I like to share it because if multiple different trading systems or theories come up with the same point somewhere, that might be a good number to target. The only way I would know that is if multiple people with different ideas put those ideas out in the open.
Just to show my system though and that yes, markets do function this way (in addition to others), you can see my chart above. I posted an earlier one and you see the breakdown and you see I called for it to be weak on the downside if that was the direction. That was proven correct 1 1/2 hours later. Here is another chart that shows all of the "wedges" just today. There are more a guy could put if he wanted but I put 6 and you will see the breakouts associated with each one.
Edit: Oh, and 50% was just my target to accumulate more long's. I am not wild about buying soybeans in the $10 area because of the fundamentals. So if I am doing it based off a move, I want to make the best buy I think I can. I don't believe the move is invalidated by a 50% pullback. That is my opinion. That is why I say 50%.
Edited by Conan the Farmer 1/5/2017 12:48
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