Ahhh think i understand
Important part is not just price closing below the blue line "Blue Line FAILED" in picture, but the RETEST of the failed blue line.
Your expectation is price to push through and make a new higher high , but in this case price failed and turned to downside.
So if i was long and price turned to downside ie crossed a blue line in this case, is not to panic and dump the trade but to wait for re-test and then make decision weather to hold or dump the trade based on prices re-action to re-test.
I re-drew the picture show a visual of the retest of breakout to downside.
think im seeing what you are saying.
dojirock wrote:BB
From what I know of extremes, and not even sure if I trade them. lol
If im correct in my understanding, when price reaches an extreme, it gets rejected or breaks it (expansion) to some point then reverses and retest to confirm direction change to opposite extreme.
Might want to get a confirmation from some of the extreme traders.....
There are two forces acting upon us: Suffering pushes us forward from behind and pleasures entice us and pull us forward.