Mr. D wrote:Thanks, Mira. That makes sense.
A follow-up question. What do you do when there are too many lines? How do you "retire" them?Mira wrote:Mr. D wrote:Thanks for responding! When noticing how they serve as S&R, I get so interested that wish there was a simple guide how to use the. So, every time there is a color change at an extreme, it's a CC or dragon line?
They're the same thing.
How do you trade them is all up to you.
If you consider a line as a zone then you can use it like a place where price likes to stop a little and then run with momentum up or down.
At the moment i'm using lines as a bias, as a zline: above = up, below = down.
Obviously you don't trade THE LINE but something around that line, confirmed by the bias (above or below).
Mr. D a.png
Mr. D b.png
That could be confusing so you want to draw lines from “points of interest” and not everywhere.
Extremes, strong reactions and CCs around the midpoint are good for entries.
However, when in a trade, I’d be more conservative so I’d draw every line in front of me as they could work as a target. You don’t want to let money on the table (thanks Alias ).