The picture below has to be true. Its just simple MoMo. Theres no other way to see it.So what do we do after a MoMo? watch price action to catch it as re-act off a Zline.
Ok what else can we take as truth? MOs quotes, they got to be true.
Quote
"If the following CC closes higher than the leading CC, then the leading may have found S&R."
Im assuming here that this quote mean price is going up, so reverse for price to downside.
Altered Quote based on logic
"if the following CC closes LOWER than the leading CC, then the leading may have found S&R."
Ok so how do we know what is the leading CC and what is the following CC?
If we know how to find the leader then it be easy to find the follower.
Another Quote
"Candle that moves too far too fast is the leader"
This sounds like a MoMo right?. So we can identify the leading set of CC as MO quote states.
Ok what did MO say about following CC again.
Quote
"If the following CC closes higher than the leading CC, then the leading may have found S&R."
We know which is the leading CC so just simple test to see the following CC closing higher or lower.
There we have a complete picture that fits together with no lose ends and everything is accounted for.
To Summrise:
1. You get your MoMo with CC (leader identified)
2. we watch price for signs of bouncing off a Zlines (ie we are watching the CC if the following sets closes higher/lower than leader, meaning the leading CC set may of found S/R ie price hitting Zline after MoMo.
3. pick your entry.
This what i have in my head at moment.
PS.
I know this all one Time Frame and its not way to trade this. Our analyse should always be from Higher Time Frame down.Im just working in one time frame so i can fully grasp the concept. Before i apply across multiple time frames.
BB
bettlebox wrote: