price projection dilemmas
I would appreciate some guidance from Kool, VO or any other forum members who are experienced with the price projection techniques. How does one handle the situation where you get a significant candle (let's say its a swing high at the upper BB) followed by another significant candle which projects in the opposite direction (let's say the second candle is a swing low at the lower BB). This could also apply to a situation where you have a top abc with a bearish projection followed by a bottom abc with a bullish projection. In either case the projections have not been met but the swings have not been taken out yet thus the projections are still intact. All I could think of was looking at MAs and oscillators which might give a clue as to which price projection might prevail.Are there any other tips that one uses to get an edge which would allow you to be on the right side once the move actually develops? Thanks E.
Very kewl...kool. Thanks again!
A simple and similiar technique for price projection would be to apply linear regression bands 150/1/2. The 1/2 lines closely correspond to KBs price projections
Originally posted by ak1
pt emini, how do you decide the primary trend direction???
Staying in the context of the KB tools method: we want to use the next higher time frame projection in effect. For example, if we have a 15 minute chart projection of 950, and the market is trading at 925, then the primary trend (on the 15 minute chart) is up (from 925 to the target of 950). In this case we can look to the 5 minute or 1 minute chart counter-trend retracements back to support (127.2, 161.8 and 261.8) as our entry points into the primary trend (as encapsulated by the larger 15 minute chart projection.)
pt emini that was a great explanation it made everything click... thank you