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ΨiΉΈσ―uΏ΄ity entries
Χn tΈe Ίirst oΊ Ώ series oΊ Ώrtic΄esτ Μom άeΣΏrk Όiscusses tΈe importΏnce oΊ Ώpp΄yinΉ Ώ set oΊ
ΎreΏkout ―uΏ΄iΊiers on Ώ trenΌ΄ine ΎreΏkout ΎeΊore enterinΉ Ώ trΏΌeς
ήy Μom άeΣΏrk ΏnΌ ΜςΦς άeΣΏrk
ΙΈen Ώ trenΌ΄ine ΎreΏkout is ΏnticipΏteΌ ΏnΌ oΎviousτ invΏriΏΎ΄y it wi΄΄ ΊΏi΄τ Ύut wΈen tΈe
ΎreΏkout is unexpecteΌτ it ΉenerΏ΄΄y is vΏ΄iΌς ΜΈe exp΄ΏnΏtion Ίor tΈis pΈenomenon is iΊ Ώ
ΎreΏkout is presumeΌ oΎviousτ tΈen co΄΄ective΄y trΏΌers Ώ΄reΏΌy ΈΏve Ύeen positioneΌ Ίor tΈis
ΎreΏk ΏnΌ ΈΏve ώspentώ tΈeir investmentsς ί ΄Ώck oΊ ΏΌΌitionΏ΄ ΊunΌs wi΄΄ mΏke it ΌiΊΊicu΄t Ίor tΈe
ΎreΏkout to sustΏin itse΄Ίς
Ψoweverτ iΊ Ώ ΎreΏkout is unexpecteΌ ΏnΌ tΈe re―uisite ΎreΏkout ―uΏ΄iΊier occursτ tΈe impetus Ίor
Ώ vΏ΄iΌ ΎreΏkout existsς ΜypicΏ΄΄yτ tΈe mΏrket tΈen Ώcce΄erΏtes in tΈe Όirection oΊ tΈe new trenΌ
once tΈere is Ώ reΏ΄izΏtion ΏnΌ Ώn ΏΌmission oΊ tΈe ΎreΏkoutς
Νo Ύy introΌucinΉ Ώ set oΊ ΎreΏkout ―uΏ΄iΊiersτ Ώ trenΌ΄ine ΎreΏkout wi΄΄ Ύecome Ώn iΌeΏ΄ entry
price ΄eve΄ Ίor Ώ trΏΌe in tΈe Όirection oΊ tΈe new trenΌς ί΄ternΏtive΄yτ iΊ tΈe ΎreΏkout ΊΏi΄s to meet
Ώny oΊ tΈe ―uΏ΄iΊiersτ it wi΄΄ enΏΎ΄e tΈe Ώstute trΏΌer to trΏΌe ΏΉΏinst tΈe ΏnticipΏteΌ trenΌ ψsee ώάo
tΈe riΉΈt tΈinΉώχ ΕΏt tΈe enΌ oΊ tΈis Ώrtic΄e σσ έ΄ΏyΓς
ΜΈis Ώ΄so proviΌes you witΈ Ώn opportunity to pΏrticipΏte in positive ώprice s΄ippΏΉeώ iΊ Ώ mΏrket
orΌer is p΄ΏceΌ ΎecΏuse tΈe trΏΌinΉ puΎ΄ic usuΏ΄΄y is ΏΉΉressive witΈ mΏrket orΌers wΈen it
expects price to ΎreΏk outς ήut ΎecΏuse Ώ suΎse―uent ΎreΏkout eventuΏ΄΄y wi΄΄ Ύe ―uΏ΄iΊieΌτ itωs
essentiΏ΄ to instΏ΄΄ Ώ c΄ose stop ΄ossς ί΄ternΏtive΄yτ you cΏn use Ώ prΏctice oΊ exitinΉ on tΈe c΄ose
oΊ tΈe entry ΎΏrς Χn ΎotΈ cΏsesτ tΈe possiΎi΄ity oΊ trΏΌinΉ ΏΉΏinst tΈe prevΏi΄inΉ trenΌ ΏnΌ
cΏpitΏ΄izinΉ on sΈortσterm price swinΉs exist iΊ youωre Ώ΄ertς
ΜrenΌ΄ines ί criticΏ΄ pΈΏse in tΈis process is tΈe se΄ection oΊ tΈe correct price points re―uireΌ to
ΌrΏw Ώ trenΌ΄ineς ΪunΌΏmentΏ΄ inΊormΏtion inΊ΄uences mΏrket perceptionsς Χtωs importΏnt tΈe price
΄eve΄ se΄ection process Ύe suΊΊicient΄y sensitive to ΏΌΏpt to ΏnΌ iΌentiΊy tΈese Ί΄uctuΏtionsτ
ΏcΈieveΌ Ύy connectinΉ tΈe two most recent price pivot points re―uireΌ to construct Ώ trenΌ΄ineς
Μo Όo tΈis proper΄yτ ΊiΉurΏtive΄y speΏkinΉτ se΄ect tΈe two trenΌ΄ine price points ώΊrom riΉΈt to
΄eΊtώ rΏtΈer tΈΏn reΊerrinΉ to tΈe ΄eΊt siΌe oΊ Ώ price cΈΏrt ΏnΌ ΏrΎitrΏri΄y connectinΉ one price
point to ΏnotΈer price point to tΈe riΉΈt oΊ tΈΏt vΏ΄ueς
Μo construct Ώ ΌemΏnΌ ΄ineτ iΌentiΊy tΈe two most recent ΄ow price points tΈΏt immeΌiΏte΄y
preceΌe tΈe price ΎΏr ΎeΊore ΏnΌ immeΌiΏte΄y succeeΌ tΈe price ΎΏr ΏΊter witΈ ΈiΉΈer price ΄owsς
ΧΊ tΈe ΄ow is e―uΏ΄ to tΈe ΄ow oΊ tΈe prior price ΎΏrτ tΈen reΊer to tΈe ΎΏr immeΌiΏte΄y ΎeΊore tΈe
Ίirst oΊ tΈe two e―uΏ΄ ΄ows to Όetermine wΈetΈer Ώ vΏ΄iΌ Μά Πoint ΄ow ΈΏs Ύeen iΌentiΊieΌς ΜΈe
most recent oΊ tΈe two price ΎΏrs tΈen sΈou΄Ό Ύe se΄ecteΌ Ώs tΈe Μά άemΏnΌ Πointς Ρnce tΈe
most recent Μά Πoint ΄ow ψΌemΏnΌ pointχ ΈΏs Ύeen se΄ecteΌτ reΊer ΎΏck in time to tΈe next most
recent ΄ower Μά Πoint ΄ow ΏnΌ connect tΈe two points to construct Ώ Μά άemΏnΌ Τineς ίs new
Μά Πoint ΄ows Ώre ΊormeΌτ continue to reconstruct tΈe ΌemΏnΌ ΄ine ψsee ώΟuΏ΄iΊieΌ workώχ ΕΏt tΈe
enΌ oΊ tΈis Ώrtic΄eΓς
έonverse΄yτ to ΌrΏw Ώ supp΄y ΄ineτ se΄ect tΈe two most recent ΈiΉΈ price pointsτ wΈicΈ
immeΌiΏte΄y Ώre preceΌeΌ Ύy tΈe price ΎΏr ΎeΊore ΏnΌ immeΌiΏte΄y succeeΌeΌ Ύy tΈe price ΎΏr
ΏΊter Ύy ΄ower price ΈiΉΈsς ίΉΏinτ iΊ tΈe ΈiΉΈ is e―uΏ΄ to tΈe ΈiΉΈ oΊ tΈe prior price ΎΏrτ tΈen reΊer
to tΈe ΎΏr immeΌiΏte΄y ΎeΊore tΈe Ίirst oΊ tΈe two e―uΏ΄ ΈiΉΈs to Όetermine wΈetΈer Ώ vΏ΄iΌ Μά
Πoint ΈΏs Ύeen iΌentiΊieΌς ΜΈe most recent oΊ tΈe two price ΎΏrs tΈen sΈou΄Ό Ύe se΄ecteΌ Ώs tΈe
Μά Νupp΄y Πointς Ρnce tΈe most recent Μά Πoint ΈiΉΈ ψsupp΄y pointχ ΈΏs Ύeen se΄ecteΌτ reΊer
ΎΏck in time to tΈe next most recent ΈiΉΈer Μά Πoint ΈiΉΈ ΏnΌ connect tΈe two points to construct
Ώ Μά Νupp΄y Τineς ίs new Μά Πoints ΈiΉΈ Ώre ΊormeΌτ continue to reΌrΏw tΈe supp΄y ΄ine ψsee
ώΟuΏ΄iΊieΌ workώχς
ίnotΈer consiΌerΏtion re΄Ώtes to tΈe conΊirmΏtion oΊ Ώ Μά Νupp΄y or Μά άemΏnΌ Τineς ΜΈis is
Ώccomp΄isΈeΌ Ύy proviΌinΉ Ώn optionτ wΈicΈ re―uires not on΄y tΈe ΈiΉΈs oΊ Ώ Μά Νupp΄y Τine Ύe
ΌescenΌinΉ Ύut Ώ΄so tΈe respective c΄oses or ΄ows Ίor tΈe sΏme price ΎΏrs Ύe Όec΄ininΉς
έonverse΄yτ Ίor Ώ Μά άemΏnΌ Τineτ not on΄y must tΈe ΄ows Ύe ΏscenΌinΉτ Ύut tΈe respective
price ΎΏrsω c΄oses or ΈiΉΈs sΈou΄Ό Ύe tooς ΝucΈ re―uirements enΏΎ΄e you to ΌeΏ΄ witΈ inconc΄usive
trenΌ΄ines tΈΏt previous΄y ΈΏΌ Ύeen tΈe ΎΏne oΊ most conventionΏ΄ tecΈniciΏns ΎecΏuse tΈey Ώre
ΌrΏwn ΎΏsicΏ΄΄y Ί΄Ώtς
ίs you cΏn seeτ tΈe trenΌ΄ine process cΏn Ύe mΏΌe oΎjective ΏnΌ mecΈΏnicΏ΄ς άrΏwinΉ trenΌ΄ines
no ΄onΉer Ύecomes Ώ suΎjective Έitσorσmiss exerciseς Χn ΊΏctτ Ύy metΈoΌicΏ΄΄y ΌeΊininΉ tΈe point
se΄ection ΏnΌ introΌucinΉ Ώ set oΊ ―uΏ΄iΊiersτ you cΏn cΏ΄cu΄Ώte price projectionsτ Ώs we΄΄ Ώs
Όetermine wΈetΈer Ώ ΎreΏkout is ΄eΉitimΏte or i΄΄eΉitimΏte ΏnΌ tΈereΊore sΈou΄Ό Ύe ώΊΏΌeΌςώ
ΟuΏ΄iΊiers ΟuΏ΄iΊier ύο proviΌes tΈΏt iΊ Ώn upsiΌe ΎreΏkout ΏΎove Ώ Μά Νupp΄y Τine were to
occurτ tΈe c΄osinΉ price one trΏΌinΉ ΎΏr ΎeΊore tΈe ΎreΏkout must Ύe ΄ess tΈΏn tΈe c΄osinΉ price
two trΏΌinΉ ΎΏrs ΎeΊore tΈe ΎreΏkoutς έonverse΄yτ ΟuΏ΄iΊier ύο proviΌes tΈΏt iΊ Ώ ΌownsiΌe
ΎreΏkout Ύe΄ow Ώ Μά άemΏnΌ Τine were to occurτ tΈe c΄osinΉ price one trΏΌinΉ ΎΏr ΎeΊore tΈe
ΎreΏkout must Ύe ΉreΏter tΈΏn tΈe c΄osinΉ price two trΏΌinΉ ΎΏrs ΎeΊore tΈe ΎreΏkoutς ΫstΏΎ΄isΈinΉ
tΈis c΄osinΉ price re΄ΏtionsΈip ΏnΌ suΎse―uent΄y recorΌinΉ Ώ ΎreΏkout inΌicΏtes tΈe trΏΌinΉ
community ΄ike΄y wi΄΄ Ύe skepticΏ΄ oΊ tΈe ΎreΏkout intrΏΎΏr ΏnΌ wi΄΄ not pΏrticipΏte unti΄ tΈe c΄ose
oΊ tΈe ΎreΏkout ΎΏrς ήy reviewinΉ tΈose ΊΏctors present wΈen tΈe c΄osinΉ price conΊirmeΌ tΈe
intrΏΎΏr ΎreΏkoutτ youωre oΊten ΏΎ΄e to ΏvoiΌ tΈe price ΊorΊeiture tΈΏt Ώrises wΈen you ΊΏi΄ to enter
tΈe trΏΌe Ώt tΈe intrΏΎΏr ΎreΏkout ΏnΌ ΏwΏit tΈe ΎreΏkout ΎΏrωs c΄oseς ήut Ύy not Ίu΄Ίi΄΄inΉ
ΟuΏ΄iΊier ύοτ you Ώre not prec΄uΌeΌ Ίrom enterinΉ tΈe trΏΌe intrΏΎΏr ΎecΏuse ΏΌΌitionΏ΄ ―uΏ΄iΊiers
cΏn Ύe Ίu΄Ίi΄΄eΌ insteΏΌτ wΈicΈ wi΄΄ proviΌe simi΄Ώr justiΊicΏtion Ίor intrΏΎΏr ΎreΏkout entryς
ΧΊ ΟuΏ΄iΊier ύο is not metτ tΈen ΟuΏ΄iΊier ύξ mΏy justiΊy intrΏΎΏr ΎreΏkout entryς ΟuΏ΄iΊier ύξ
proviΌes tΈΏtζ οχ tΈe open Ύe ΉreΏter tΈΏn tΈe Μά Νupp΄y Τine Ίor Ώn upsiΌe ΎreΏkout or Ύe΄ow
tΈe Μά άemΏnΌ Τine Ίor Ώ ΌownsiΌe ΎreΏkoutε ξχ tΈe open Ύe ΉreΏter tΈΏn tΈe previous price
ΎΏrωs c΄ose Ίor Ώn upsiΌe ΎreΏkout or ΄ess tΈΏn tΈe previous ΌΏyωs c΄ose Ίor Ώ ΌownsiΌe ΎreΏkoutε
ΏnΌ νχ price ΏΌvΏnce one or two ticks ΏΎove tΈe openinΉ price suΎse―uent to tΈe open Ίor Ώ
upsiΌe ΎreΏkout or price Όec΄ine one or two ticks Ύe΄ow tΈe openinΉ price Ίor Ώ ΌownsiΌe
ΎreΏkoutς
ΟuΏ΄iΊier ύξ inΌicΏtes tΈe supp΄yρ ΌemΏnΌ re΄ΏtionsΈip ΈΏs cΈΏnΉeΌ suΊΊicient΄y since tΈe
previous price ΎΏrωs c΄ose to suΉΉest Ώ vΏ΄iΌ ΎreΏkout ΏnΌ intrΏΎΏr entryς Μo conΊirm tΈe ΎreΏkout
ΏnΌ to prevent enterinΉ on tΈe openinΉτ wΈicΈ miΉΈt coinciΌe witΈ Ώ price exΈΏustion cΏuseΌ Ύy
newsτ speciΏ΄istsτ Ί΄oor trΏΌers or ΎiΉ Ύ΄ock Ώctivityτ price Ώ΄so must Ίo΄΄ow tΈrouΉΈ in tΈe
Όirection oΊ tΈe ΎreΏkout Ύy one or two ticksς Χn ΏΌΌitionτ tΈis wi΄΄ e΄iminΏte tΈe risk oΊ exitinΉ Ώ
trΏΌe in tΈe wronΉ Όirection on Ώn intrΏσΎΏr openinΉ price spikeς
ΧΊ tΈe Ίirst two ―uΏ΄iΊiers Ώre not metτ tΈen ΟuΏ΄iΊier ύντ wΈicΈ uti΄izes Ώ simp΄e meΏsure oΊ
mΏrket ΌemΏnΌ ΏnΌ supp΄yτ is Ώn option tΈΏt cΏn justiΊy intrΏΎΏr entryς ί meΏsure oΊ mΏrket
ΌemΏnΌ ψor ΎuyinΉ pressureχ cΏn Ύe ΌetermineΌ Ύy cΏ΄cu΄ΏtinΉ tΈe ΌiΊΊerence Ύetween tΈe c΄osinΉ
price ΏnΌ tΈΏt sΏme price ΎΏrωs true ΄ow ψtΈΏt price ΎΏrωs ΄ow or tΈe previous ΌΏyωs c΄oseτ
wΈicΈever is ΄essχς ί tΈresΈo΄Ό ΄eve΄ tΈen cou΄Ό Ύe cΏ΄cu΄ΏteΌ Ύy ΏΌΌinΉ tΈe previous ΎΏrωs
ΎuyinΉ pressure to its c΄osinΉ priceς ΧΊ tΈe Μά Νupp΄y Τine is ΏΎove tΈis ΄eve΄ wΈi΄e tΈe current
price ΎΏrωs ΈiΉΈ is ΏΎ΄e to exceeΌ tΈe ΎuyinΉ pressure tΈresΈo΄Ό ψΏnΌ tΈen surpΏss tΈe Μά Νupp΄y
Τineχτ tΈe imp΄icΏtion is tΈΏt tΈe intrΏΎΏr ΎreΏkout ΏΎove tΈe Μά Νupp΄y Τine is ΄eΉitimΏteς
Νimi΄Ώr΄yτ Ώ meΏsure oΊ mΏrket supp΄y ψor se΄΄inΉ pressureχ cΏn Ύe ΌetermineΌ Ύy cΏ΄cu΄ΏtinΉ tΈe
ΌiΊΊerence Ύetween Ώ c΄osinΉ price ΏnΌ tΈΏt sΏme price ΎΏrωs true ΈiΉΈ ψtΈΏt price ΎΏrωs ΈiΉΈ or tΈe
previous ΌΏyωs c΄oseτ wΈicΈever is ΉreΏterχς ί tΈresΈo΄Ό ΄eve΄ tΈen cou΄Ό Ύe cΏ΄cu΄ΏteΌ Ύy
suΎtrΏctinΉ tΈe previous ΎΏrωs se΄΄inΉ pressure Ίrom its c΄osinΉ priceς ΧΊ tΈe Μά άemΏnΌ Τine is
Ύe΄ow tΈis ΄eve΄ wΈi΄e tΈe current price ΎΏrωs ΄ow is ΏΎ΄e to exceeΌ tΈe se΄΄inΉ pressure tΈresΈo΄Ό
ψΏnΌ tΈen surpΏss tΈe Μά άemΏnΌ Τineχτ tΈen tΈe imp΄icΏtion is tΈΏt tΈe intrΏΎΏr ΎreΏkout Ύe΄ow
tΈe Μά άemΏnΌ Τine is ΄eΉitimΏteς
ΛsuΏ΄΄yτ iΊ tΈe ΌemΏnΌ tΈresΈo΄Ό is ΏΎove tΈe Μά Νupp΄y Τine or tΈe supp΄y tΈresΈo΄Ό is Ύe΄ow
tΈe Μά άemΏnΌ Τineτ tΈe ΄ike΄iΈooΌ oΊ tΈe mΏrket exceeΌinΉ ΎotΈ tΈe Μά Τine ΏnΌ tΈen tΈe
previous ΎΏrωs expression oΊ ΌemΏnΌ or supp΄y is ΄ess ΄ike΄yς ΜΈis is ΎecΏuse tΈe Μά Τine serves
Ώs sucΈ ΊormiΌΏΎ΄e resistΏnce or supportτ it mΏkes it virtuΏ΄΄y impossiΎ΄e Ίor tΈe price to exceeΌ
tΈe cΏ΄cu΄ΏteΌ tΈresΈo΄Ό ΄eve΄ Ώs we΄΄ς
ΡtΈer too΄s ίnotΈer possiΎ΄e ―uΏ΄iΊierτ current΄y ΎeinΉ testeΌ to Όetermine its eΊΊectivenessτ
re΄Ώtes tΈe ΎreΏkout ΄eve΄ to tΈe true price rΏnΉe oΊ tΈe price ΎΏr ΎeΊore tΈe ΎreΏkoutς ΡΊtenτ wΈen
Ώ mΏrket recorΌs Ώ oneσprice ΎΏr move Ίrom tΈe previous ΎΏrωs c΄ose ΉreΏter tΈΏn οςθ times tΈe
previous ΎΏrωs true price rΏnΉeτ Ώ sΈortσterm overΎouΉΈt ψiΊ tΈe move is upχ or overso΄Ό ψiΊ tΈe
move is Όownχ conΌition is recorΌeΌς έonse―uent΄yτ iΊ suΎse―uent to Ώ Μά Τine ΎreΏkout tΈis
move is Ώccomp΄isΈeΌτ tΈen Ώn exit sΈou΄Ό Ύe tΏken Ώt tΈΏt timeς ΧΊ tΈe Μά Τine ΎreΏkout Ίor tΈe
sΏme price ΎΏr occurs suΎse―uent to Ώ οςθσtimes price moveτ tΈen tΈe Μά Τine ΎreΏkout is not
―uΏ΄iΊieΌ ψsee ώΙorkinΉ on itώχ ΕΏt tΈe enΌ oΊ tΈis Ώrtic΄e σσ έ΄ΏyΓς
ί΄tΈouΉΈ it is not Ώ ―uΏ΄iΊier in itse΄Ίτ tΈe Μά Τine ΩΏp ψΏ comΎinΏtion oΊ Ώ Μά Τine ΏnΌ Ώ Μά
ΩΏpχ Ώ΄so ΈΏs Ύeen eΊΊective in iΌentiΊyinΉ ΎreΏkoutsς ήy connectinΉ tΈe most recent Μά Πoint
witΈ tΈe Ίirst suΎse―uent price ΉΏp ψ΄ow ΊΏi΄inΉ to intersect tΈe previous price ΎΏrωs ΈiΉΈ upsiΌe or
ΈiΉΈ ΊΏi΄inΉ to intersect tΈe previous price ΎΏrωs ΄ow ΌownsiΌeχτ ΎreΏkouts cΏn Ύe iΌentiΊieΌ
simp΄yς ΜΈe Ώpp΄icΏtion ΄enΌs creΌence to tΈe ΊΏct tΈΏt price ΉΏps must Ύe consiΌereΌ in mΏrket
timinΉ ΏnΏ΄ysis ΎecΏuse tΈey iΌentiΊy instΏnces in wΈicΈ tΈe supp΄y ΏnΌ ΌemΏnΌ e―ui΄iΎrium
Ύecomes ΌistorteΌς ΜΈese conc΄usions were tΈe resu΄t oΊ Ώn extenΌeΌ ΏnΏ΄ysis oΊ price vΏcuums
ψΉΏpsχ conΌucteΌ mΏny yeΏrs ΏΉoς
Χn tΈe cΏse oΊ Ώ ΉΏp to tΈe ΌownsiΌeτ tΈe Μά Τine ΩΏp connects tΈe recent Μά Πoint ΈiΉΈ witΈ
tΈe ΈiΉΈ oΊ tΈe ΉΏp ΎΏrς ί΄ternΏtive΄yτ in tΈe cΏse oΊ Ώ ΉΏp to tΈe upsiΌeτ tΈe Μά Τine ΩΏp
connects tΈe recent Μά Πoint ΄ow witΈ tΈe ΄ow oΊ tΈe ΉΏp ΎΏrς ΜΈis tecΈni―ue Ώ΄so cΏn Ύe useΌ in
cΏse oΊ Ώ soσcΏ΄΄eΌ price ΄Ώp ψ΄ow intersectinΉ tΈe previous ΎΏrωs ΈiΉΈ Ύut ΊΏi΄inΉ to intersect tΈe
previous ΎΏrωs c΄ose or ΈiΉΈ intersectinΉ tΈe previous ΎΏrωs ΄ow Ύut ΊΏi΄inΉ to intersect tΈe
previous ΎΏrωs c΄oseχς Φust Ώs witΈ trΏΌitionΏ΄ Μά Τinesτ Μά ήreΏkout ΟuΏ΄iΊiers ΏnΌ Μά Πrice
Πrojections tecΈni―ues cΏn Ύe Ώpp΄ieΌ eΊΊective΄y Ώs we΄΄ς
Ϋxits Ρnce Ώ position is tΏkenτ tΈere Ώre tΈree wΏys to cΏnce΄ tΈe trΏΌeς Ιeω΄΄ review tΈese in tΈe
context oΊ Ώn upsiΌe ΎreΏkout ΏΎove Ώ Μά Νupp΄y Τineτ wΈicΈ cΏn Ύe reverseΌ Ίor Ώ ΌownsiΌe
ΎreΏkout ΎeneΏtΈ Ώ Μά άemΏnΌ Τineς έΏnce΄΄Ώtion ύο reΊers to tΈose instΏnces wΈen tΈe openinΉ
oΊ tΈe price ΎΏr immeΌiΏte΄y succeeΌinΉ tΈe ΎreΏkout is Ύe΄ow tΈe Μά Νupp΄y Τineτ tΈereΎy
imp΄yinΉ tΈΏt tΈe ΎreΏkout ΈΏs Ύeen reverseΌς ΜΈe recoΉnition oΊ tΈe importΏnce oΊ tΈe ensuinΉ
price ΎΏrωs openinΉ price Ώs Ώ ΎreΏkout conΊirmΏtion wΏs tΈe cΏtΏ΄yst Ίor it ΎeinΉ reΊerreΌ to Ώs
tΈe Μά έriticΏ΄ ΟuΏ΄iΊierς
ΜΈe seconΌ cΏnce΄΄Ώtion is introΌuceΌ wΈen tΈe openinΉ oΊ tΈe price ΎΏr immeΌiΏte΄y succeeΌinΉ
tΈe ΎreΏkout is ΄ess tΈΏn tΈe ΎreΏkout ΎΏrωs c΄oseτ ΏnΌ tΈe c΄ose tΈΏt sΏme ΎΏr is Ύe΄ow tΈe Μά
Νupp΄y Τineς έΏnce΄΄Ώtion ύν Ώpp΄ies to tΈose instΏnces wΈen tΈe ΈiΉΈ oΊ tΈe price ΎΏr
immeΌiΏte΄y succeeΌinΉ tΈe upsiΌe ΎreΏkout ΊΏi΄s to exceeΌ tΈe ΈiΉΈ oΊ tΈe ΎreΏkout ΎΏrς ίny
one or Ώ΄΄ tΈree oΊ tΈese cΏnce΄΄Ώtions cΏn Ύe introΌuceΌ Ώt Ώny timeς
Πrice projections Πrice symmetry is pervΏsive tΈrouΉΈout tΈe mΏrketsς ΡΊten tΈe price
movement ΎeneΏtΈ Ώ Μά Τine is rep΄icΏteΌ once Ώ ―uΏ΄iΊieΌ Μά Τine is Ύroken upsiΌe ΏnΌ tΈe
reverse is oΎserveΌ wΈen Ύroken ΌownsiΌeς ΜΈere Ώre tΈree metΈoΌs to cΏ΄cu΄Ώte price oΎjectives
ΎΏseΌ upon ―uΏ΄iΊieΌ Μά Τine ΎreΏkoutsς ΜΈe recommenΌeΌ metΈoΌ to cΏ΄cu΄Ώte Ώn upsiΌe price
oΎjective suΎse―uent to Ώ ―uΏ΄iΊieΌ Μά Τine upsiΌe ΎreΏkout re―uires tΈΏt Ώ trΏΌer cΏ΄cu΄Ώte tΈe
ΌiΊΊerence Ύetween tΈe ΄owestτ most extreme price ΎeneΏtΈ Ώ Μά Νupp΄y Τine ΏnΌ tΈe Μά Νupp΄y
Τine immeΌiΏte΄y ΏΎove it ΎeΉinninΉ Ίrom tΈe ΄eΊt most Μά Πoint tΈrouΉΈ tΈe price ΎreΏkout ΎΏr
ΏnΌ tΈen ΏΌΌinΉ tΈΏt ΌiΊΊerence to tΈe ΎreΏkout price ψsee ώΝymmetricΏ΄ movesώχ ΕΏt tΈe enΌ oΊ
tΈis Ώrtic΄eΓς
έonverse΄yτ to cΏ΄cu΄Ώte Ώ ΌownsiΌe price oΎjective suΎse―uent to Ώ ―uΏ΄iΊieΌ Μά Τine ΌownsiΌe
ΎreΏkout re―uires you to cΏ΄cu΄Ώte tΈe ΌiΊΊerence Ύetween tΈe ΈiΉΈestτ most extreme price ΏΎove
Ώ Μά άemΏnΌ Τine ΏnΌ tΈe Μά άemΏnΌ Τine immeΌiΏte΄y ΎeneΏtΈ it ΎeΉinninΉ Ίrom tΈe ΄eΊt
most Μά Πoint tΈrouΉΈ tΈe price ΎreΏkout ΎΏr ΏnΌ tΈen suΎtrΏct tΈΏt ΌiΊΊerence Ίrom tΈe ΎreΏkout
price ψsee ώάo tΈe riΉΈt tΈinΉώχ ΕΏt tΈe enΌ oΊ tΈis Ώrtic΄eΓς ί΄tΈouΉΈ it is common to retΏin Ώ price
oΎjective unti΄ it ΈΏs Ύeen sΏtisΊieΌτ it is oΎvious tΈΏt once Ώ contrΏΌictory Μά Τine ΈΏs Ύeen
Ύrokenτ tΈe ΌynΏmics oΊ tΈe mΏrket ΈΏve sΈiΊteΌ suΊΊicient΄y to wΏrrΏnt reversinΉ Ώ position ΏnΌ
iΉnorinΉ tΈe price oΎjective tΈΏt suΎse―uent΄y ΈΏs Ύeen cΏnce΄eΌς








Μom άeΣΏrk is tΈe ΏutΈor oΊ ΜΈe New Νcience oΊ ΜecΈnicΏ΄ ίnΏ΄ysis ΏnΌ New ΣΏrket ΜiminΉ
ΜecΈni―ues ψΦoΈn Ιi΄ey ϊ Νonsχς ΜςΦς άeΣΏrk is Ώ Ίutures Ύroker witΈ Σerri΄΄ ΤyncΈ in
έΈicΏΉoς Μά Τineτ Μά Πointτ Μά Νupp΄y Τineτ Μά άemΏnΌ Τineτ Μά ήreΏkout ΟuΏ΄iΊiersτ Μά
Τine ΩΏpτ Μά έriticΏ΄ ΟuΏ΄iΊier ΏnΌ Μά Πrice Πrojections Ώre reΉistereΌ trΏΌemΏrksς