well obviously the more touches it has, the more significant it
is.
On the flip side, let's say we have a stock that continues to
test support, generally if it tests support too many times it will
usually break it.
I like to use the analogy of a someone jumping up and down on a
frozen lake, the stock is the person and the ice is support.
Eventually that ice will break and the person will fall
through if he jumps up and down on the ice too many times.
The same with a weak stock, if it tests support too many
times, usually it will finally fall through.
Matt, Are multiple tests of the Pivot a good sign or a bad sign?
Gold Futures YG, testing pivot
Posted by RichieD on 1st of Mar 2012 at 11:02 am
well obviously the more touches
Posted by matt on 1st of Mar 2012 at 11:07 am
well obviously the more touches it has, the more significant it is.
On the flip side, let's say we have a stock that continues to test support, generally if it tests support too many times it will usually break it.
I like to use the analogy of a someone jumping up and down on a frozen lake, the stock is the person and the ice is support. Eventually that ice will break and the person will fall through if he jumps up and down on the ice too many times. The same with a weak stock, if it tests support too many times, usually it will finally fall through.
So are you suggesting the same concept (of breaking through) applies......
Posted by RichieD on 1st of Mar 2012 at 11:13 am
when we repeatedly touch the ceiling (in this case the pivot point)?
sure, the more times it
Posted by matt on 1st of Mar 2012 at 11:49 am
sure, the more times it is tested, the more likelihood it could break it