Postby razorboy » Wed Jun 10, 2009 7:49 pm
I'll give it a shot - I'm trying to figure out how MO uses his price boxes
As MO says - you have corrections and countertrend moves - corrections return to the direction in which prices was moving before they moved the other way, countertrend moves are not.
What I am attempting to do is identify the largest correction in the up trend - price returns to its original high, and quantify the time in terms of bars (time) and pips. It should then hold that later on in the uptrend, when price falls away from the new high by the same number of pips as the largest correction, and doesnt return to this new high in the same time frame as the largest correction did, you have a reversal.
That is the crux of it..........maybe MO can illuminate some more........