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Saturday, May 28, 2011

Find support or resistance

At 50% and Return Measured Move

At 50% return and measured moves around a long time. GSCS begins with these two simple ideas and build full access trading of them.

The 50% rule simply says prices will find support or resistance of 50% violation of the price swing. The logic is easy enough to understand. The 50% point of all buyers and sellers in the swing - in aggregate - even. Half of the buyers and sellers have half the profits, half of the buyers and sellers have half the losses.
Mr. Goodman has taught me the importance of being able to detect the underlying logic in any pattern or formation indicator tool studied contemplated use.
The line on the left is a swing, the line on the right side is composed of more swings
When these buyers and sellers to unwind, it will create a measured move, in which price was to have all the profits of all buyers and sellers have losses (the swing) or the sellers have all profits and all the buyers have lost (down sweep) .
In this GWT 1-2-3 is the basic building block is called matrix. A matrix is ​​composed of the first primary swing (FPS), a high swing (SS) and Second Primary Swing (PCA).

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