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Price Action Reading

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Minor Swings

1) The opposition must show conviction they wish to reverse the trend by stopping the trend and holding it briefly. (Consolidation).

2) The opposition must then breach the trending party's line by surpassing the aggressor's own conviction level of price satisfaction. (Breakout).

2a) If the party line is breached then momentum is required to better the breach.

3) All subsequent breaches after two shall be considered momentum exhausting, should there be any, and once depleted all movements with the trend shall be considered jockeying to create a base of the same low in price (for reversing downtrends) and the same high in price (for reversing uptrends), if the base requisite to stage the attack on the trend was found weak and/or the momentum in breach attempts were weak.

4) Movement to create support for the base only occurs when the opposition to the trend temporarily loses edge to the trending party by ceasing to breach its own levels. (Corner and retrace head fakes).

5) Support for the base and a change of trend will not occur unless or until the trending party moves lower than the base (in a downtrend) and higher than the base (in an uptrend).

5a) Support for the base must not be considered established unless or until the bar, line or candle closes higher in price than the lowest low in the immediate, relevant price action (in a downtrend reversal) and lower than the highest price (in an uptrend reversal).

Major Swings

Rules 1-5a of Minor Swings apply, only you're after breaching swing consolidation arms sequentially. Ideally you require two breaches of attacks beating the immediate arm, a manageable retrace still in favor against the trend, and two breaches of the arm preceding it. A trend wont reverse unless that happens.


A swing has no more than three peaks (Resitance price satisfaction) before correcting; and corrections have no more than three movements, two against the trend, and one with.

Being able to distinguish between minor peaks and major swings can't be taught. I must be aquired.

Price reading with some time in charts isn't all that difficult, but confidence and timing does take some getting used to.

I'm telling you in charts from GOOG, or Gold or SPX, this works and can be replicated day after day; but don't take my word for it, trade it sim and see for yourself.

A little bit more love, is what the World needs.
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