| JC STONE - 8/6/2018 12:16
Okay , so here we sit in the middle of the range in your last chart. Do we head for sub 3 or 5.50. The last low was just a wisker under the previous low. Is that close enough or do we need to see another higher low which would be a break from today.
I know you don't like the MACD , however its hinting of possible higher prices ahead. Not sure if old crop holders will be able to catch the wave however.
I may be watching the new all time high from the Pearly Gates!
Hi JC,
I have no problem with the MACD it's another tool. It all comes back to energy JC. When those sellers stepped down at 5.20, they made new lows at 3.20 or so. They "extended" quite significantly right? We then spent two years in the next pull back, - which was double the previous pullback's time, and when we went lower, we squeaked out new lows. Longer time meant less extension. FACT: Sellers made new lows. Also FACT: After two year of storing energy we barely made new lows - didn't extend nearly like before. So essentially those sellers lacked the energy to overcome the tug on price higher even after a duration double the previous pullback. Like we have stated before - its an epic failure. So price pulls back again,..another 2 year pullback trading inside the last swing - same size pullback. Knowing that last time we pulled back for this amount of time and we failed, and we just did essentially did the same thing -inside the other swing - what do you think the probable outcome is? Do you think those sellers got more energy today than two years ago? We don't know for sure yet, but I would guess probably not. So with that assumption.... FACT: Sellers after another two year pullback lack the energy to make new lows and infact - to date anyway - can't even match the last swing length lower. So does all that sound bearish or bullish to you JC? And never once was the MACD used. If you try and frame price action as the expression of energy the picture will become clearer and removes the fundamental noise. So we have another attempt lower, and a HL. What should happen? A HH right? And at some point the energy being stored on the "X" axis will be so great that price will have to express itself vertically on the "Y" axis to relieve the pressure. It's all in price, but price will do what it wants on its time and when its ready. Not when we are.
Take Care
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