As described in the video, I called the last few number of days one big CLUTER-F. This video highlighted the meaning in a non profanity way. One goal of this process to find a new support and resistance line. Do understand that this process of building trend-lines using an automated method to calculate peaks and troughs (or pivot points) is not easy. I refer you to this as it will explain the process better than I can here. I could easily get bogged down in this quagmire. As a result, I am calling it a day so I can move onto other important phases based on my Nictrades learning.
Not perfect science
This is not meant to be perfect but the general of a 3rd touch on a trend line can confirm an entry or exit. One may be able to use these to make that point a support or resistance line. You could also swap out when price cross these lines to be used as a new support or resistance line. There is not perfect science but you try your best with simple indicators that can be used in combination of other indicators to find new support and resistance line. You could also use other rules to confirm market positions. As well, one could combine these with other indicators mentioned which would include moving averages or harmonic patterns.
As indicated in the video, I have ways to calculate the expected third touch if two have already happened on a trend line. If price moves across that expected point, we could use that as way to do a market position or confirm something else.
Note that this process can be used at a universal level of all asset classes hopefully
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NOTE I now post my TRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!
